Barclays has huge and growing operations in the developing world. Last year it declared almost £1 billion of its £5.9 billion profit were made in Africa. This should be good news for developing countries, which need to increase their tax revenues to invest in their teachers, doctors and much needed infrastructure.
Eventually it’s these efforts that will enable them to become independent of international aid. But the OECD estimates developing countries lose three times more to tax havens than they receive in aid each year.
No you miserably ignorant tosspots.
What will increase tax revenues is economic growth. Africa is a capital poor region: so what they want is more capital so that the rate of economic growth can increase so as to increase tax revenues. Which means that you\’d really rather like foreign banks and investors to put that capital in so as to increase economic growth.
Indeed, Africa is so capital poor that it\’s almost certainly a better idea to allow foreigners to stick capital in without any tax on their profits at all: so as to get the maximum amount of economic growth that one can.
And as to losing more to tax havens than gaining from official aid: that\’s not the correct comparison to make and you fucking well know it.
What\’s the private investment in Africa and what\’s the outflow from Africa are the relevant numbers. And given that there\’s an net investment inflow the amount going in must be larger than the amount going out.