African countries lose billions every year because of tax dodging by big corporations and wealthy individuals. They lose billions more from overly generous tax incentives in a misguided belief that this is the only way to attract foreign investment.
Interpretation
The quote highlights the financial losses African countries face due to tax evasion and excessive tax incentives to attract foreign investment.
Winnie Byanyima's quote sheds light on the significant economic challenges that African nations encounter due to tax dodging practices by large corporations and affluent individuals. Additionally, it underscores the detrimental effects of providing overly generous tax incentives, which are often justified by the belief that such measures are essential for attracting foreign investors. In reality, this strategy results in lost revenue that could be crucial for the development and stability of these nations.
In practice
In a discussion about economic policy in Africa, this quote highlights the need for fair taxation.
High corruption and the influence of big business and the wealthy elite keeps the poorest Nigerians trapped in poverty and cut off from the benefits of economic growth and basic services. Some people - searching for the means to survive - became vulnerable to groups like Boko Haram.
The high price of medicines is crippling healthcare systems and denying people access to the treatments they so desperately need.
The discrimination of women and girls goes to the core of any and all analyses of the world's economic, political, and environmental problems.
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All money is a matter of belief.
The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.
If a government resorts to inflation, that is, creates money in order to cover its budget deficits or expands credit in order to stimulate business, then no power on earth, no gimmick, device, trick or even indexation can prevent its economic consequences.
I believe myself to be writing a book on economic theory which will largely revolutionize - not, I suppose, at once but in the course of the next ten years - the way the world thinks about economic problems.
Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. Believe me, it will be enough.
The natural effect of low interest is to increase trade and industry; because undertakings of every kind can be prosecuted with greater advantage.
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