Fraudulently under-reporting the price, quantity of a product or service and the value of a commercial transaction in invoices are resulting in Africa and developing countries missing out on billions of dollars in tax revenues, foreign exchange and ultimately development.
An internal IMF report admitting the destructive nature of neoliberalism may have come too late for many African countries. The neoliberal structural adjustment programs have led to economic hardships, political instability and conflicts in most African countries where they have been implemented.
There is a distinct possibility of a much smaller “Little England” looking at itself in the mirror and asking how it might salvage its relations with Africa in order to continue to get Africa’s resources and markets. This time, Africa should not let England divide and rule it; it must take the opportunity to unite and negotiate as one continent.
Last week the South African Reserve Bank Quarterly Bulletin confirmed that foreign corporations are milking the economy, drawing away profits far faster than they are reinvested or than local firms bring home offsetting profits from abroad. Can anything be done to stop the hemorrhaging?
It takes quite some fantasy to imagine how, based on the living costs in Africa’s urban centres, a $2-a-day threshold catapults someone from the $1.99 margin as criteria for poor into a middle-class existence. And then into playing a pioneering role in the continent’s future transformation.