AFRICA TAX SPOTLIGHT

Quarterly newsletter of the

Taxation and Development Second Issue 2010 Volume 1 ______

Editorial Attiya Waris

Welcome to the second issue of Africa Tax Spotlight. In beginning to develop tax justice and the dis‐ cussions around it not only in the domestic but also the international context and how it is applied in the African context for the entire con‐ tinent but for each individual coun‐ try, the Tax Justice network re‐ Participants at the Pan‐African Conference on Taxation and Development cently hosted the Pan‐African Con‐ ference on Taxation and Develop‐ ment in Nairobi, Kenya be‐ tween on the 25th and 26th of Table of Contents March 2010. Editorial 1 Public Resource Mobilization This conference the first and hope‐ Mobilizing Tax Revenue for & Aid in Africa 12 fully not the last of its kind, held in Transfer Pricing and the Nairobi Kenya, made critical input Development in Africa 2 into the issue of domestic taxation, Harnessing Domestic Tax Taxing Rights of resource‐based taxation as well as Developing Countries 14 international taxation and as a re‐ Policies for Development 3 sult made recommendations for the Aid and Property Taxation Africa’s Bane 15 many issues of critical concern for The Kenya Report 16 the improvement of taxation and in Francophone Africa 6 its re‐distribution within individual Taxing Extractives in TJN Across the Globe 17 states in Africa. Mauritania 7 News & Events 19 Profile 20 Foreign Aid, Investment With the current financial crisis and Trade in Resource Rich hitting most of the world there is Guest Editor: Attiya Waris currently a re‐assessment being Countries 8 Contributing Editor: Sandra Kidwingira undertaken by many developed Changing the Investment Compiled by: Catherine Njue countries and international donor email: [email protected] bodies on how much money can be Structure in Natural Published by the Tax Justice Network‐ sent to developing countries to as‐ Resources 9 Africa, Nairobi Secretariat sist in alleviating poverty and im‐ © TJN‐A www.taxjustice4africa.net proving development. It is at this Africa and Secrecy For free circulation point in time that this conference

2010 volume 1 TJN‐A newsletter

made a seminal change by en‐ This issue gives the reader a sam‐ and international systems of collec‐ gaging development practitio‐ ple of some of the papers pre‐ tion and distribution of resources ners, economists, lawyers and sented at the conference as well that are accountable, transparent, government officials from all the news around Africa in the past responsible, economic, efficient, over Africa and internationally quarter not only regionally but in‐ just and fair. in order to begin to engage ternationally as well. with the repercussions that will See Conference Communiqué here: If one critical issue can be leaned face Africa in the ensuing year http://taxjustice.blogspot.com/2010/04/tjn- from the conference and from the and in the long term. Partici‐ for-africa-issues-nairobi.html developments in taxation in Africa pants and presenters were and internationally in the past few ______from both francophone and months it is an urgent need for so‐ Anglophone Africa and it is Attiya Waris, Vice Chair, cieties and developing countries to hoped that this will develop begin to engage with each other TJN International further to include Lusophone more in order to build domestic, Africa and North Africa. regional

Mobilizing Tax Revenue for Development in Africa: The Way Forward

Despite decades of reform and and poverty reduction to take 2. Redistribution: to redistribute foreign aid, the quality of gov‐ place in African countries, it is income and to reduce inequal‐ ernance in most African coun‐ essential that a coherent, dy‐ ity through progressive taxes‐ tries remains poor. Colonial namic and domestically driven higher tax rates apply to powers did not leave behind capital accumulation, interme‐ higher income; strong, indigenous institutions diation and mobilization process 3. Re‐pricing: to re‐price economic that could tackle the develop‐ take root. alternative, that is, the use of ment challenges of modern The link between taxation and taxes and subsides to ensure state. Economic crises, wars and governance is not immediately that market prices better re‐ political instability have also apparent, but one is in fact vital taken their toll. Yet, taxation flect social costs and benefits; to the other. Taxation is a core which is one entry point for im‐ 4. Representation: to strengthen governance function. It has the proving governance on the con‐ potential to shape relationship political representation. tinent has received little atten‐ between state and society in sig‐ tion. Tax revenues are relatively nificant and distinctive low in most When governments are more de‐ ways. In Europe, tax not countries ______pependent on tax revenue and less only helped create the in Africa. on income from natural resources, state, they ‘helped to Raising ad‐ For sustainable aid, or debt financing, this gener‐ form it’ (Brautigam, ditional tax growth and poverty 2007). The origins of rep‐ revenue is resentative government further reduction to take are intimately bound constrained place in African with the evolution of by weak countries, it is es‐ taxation. There is a State le‐ strong consistent connec‐ gitimacy, sential that a coher‐ tion between the ways in as taxes ent, dynamic and which governments are have often ally stimulates accountability to domestically driven financed and the ways in not trans‐ citizens regarding the use of gov‐ which they govern. lated into capital accumula‐ ernment funds. The effect is felt improve‐ tion, intermediation In brief, tax system can more on direct taxes placed on ments in serve four main goals; personal and corporate income. Aid public ser‐ and mobilization apply to higher income; dependence on the other hand, vice deliv‐ stimulates accountability to exter‐ process take root. 1. Revenue generation: ery. For to raise government nal donors. sustainable ______revenues; growth and What Are The Problems?

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The ability to obtain direct tax reve‐ ‐tion and small for non payment holidays not only shrink the tax base but also complicates tax ad‐ nue, which are often progressive in Capital flight nature and can be used for effective ministration and are a major redistribution, is especially low; 2‐6% Capital flight involves the deliber‐ source of revenue loss and leak‐ ate and illegal disguised expatria‐ age from the taxed economy. of GDP in poor countries compared to tion of money by companies or in‐ They should be abolished, Fur‐ 12‐18% for developed countries dividuals taxable within the coun‐ thermore, laws against manipulat‐ (Cobham, 2005). This is due to the try of origin. Developing countries ive transfer pricing should be in‐ following features that characterize lose more money through private troduced and the necessary tech‐ developing countries: capital flight than they receive in nical capacities must be created; public aid. The Large Informal Economy It is very important to educate the young (who are the next Most developing countries have a Tax Competition generation of taxpayers) on the large informal economy, which is Tax competition means that coun‐ significance and role of taxes. . under–taxed or completely untaxed. tries compete against each other Outreach activities including, Trade liberalization by using tax related or financial TV and radio coverage, advertis‐ incentives to attract Foreign Direct ing and tax themed programs Many African countries rely on tariffs also helps children and adults to for an important share of govern‐ Investment (FDI) understand the civic responsi‐ ment revenue. While opening up Willingness to Pay trade is expected to bolster long‐ bilities of paying taxes; term economic growth, countries Citizens’ wiliness to pay tax may The working conditions of tax participating in trade negotiations, be low for historical, political and officials also need to be im‐ such as the Doha Round and the Eco‐ cultural reasons, and may also re‐ proved in order to motivate nomic Partnership Agreements flect the perception that govern‐ them to carry out their duties in (EPAs), are required to cut their tar‐ ments consistently misuse public a more efficient and profes‐ iffs and are thus likely to collect less funds. sional manner; revenue. The Way Forward The monarchs (Traditional Personal Income Tax Fine‐tuning the policy and the heads) are very close to the While personal income taxes yield administration governing the people they rule over. The tax about 7.2% of GDP in developed taxation of these taxpayers’ in‐ authorities should therefore countries, the corresponding figure comes would help in raising addi‐ maintain close relationship with for developing countries is only 1.9% tional revenue. Policies should them and explore such relation‐ ship to bring more people into of GDP (Bird and Zolt 2005). focus on strengthening the tech‐ nical capacity and organization the tax net and also increase Limited Capacity of Revenue Au‐ of revenue authorities through the level of taxpayer’s compli‐ thorities computerization and improved ance. operating procedures. Stricter Tax leakage in developing countries ______enforcement mechanisms as well is often worsened by poor function‐ as improved tax audits and in‐ Samuel Fakile, ing tax authorities due to variety of spections also contribute to in‐ reasons; under–resourced or under– Covenant University, Ota, trained administrators, poor tax col‐ creased taxpayer compliance; Nigeria lection systems, failure of legal en‐ Using free zones that offer tax forcement mechanism for tax collec‐

Harnessing Domestic Tax Policies for Development. Domestic Tax Policies and Practices: Is there a Better Way?

The role of domestic tax policy in and obvious need for more reve‐ revenue are essential for a gov‐ nue to enable the state to provide ernment to be effectively sus‐ development and maintain even the most basic tained. Revenue is critical to fi‐ The current state of poverty in most public services to the people. nancing for development, poverty countries of Africa presents an urgent Sound mechanisms for generating eradication and fulfilling the prio‐

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‐rity areas of National Develop‐ ‐ired. Particularly troubling is been eroding. The taxation rate ment Plans (NDP). the disproportionate direct tax has reduced from twenty percent burden that falls on individuals in 1995 to sixteen percent in The awareness of the important in the formal employment sec‐ 2009 and the administration of role of taxes in development is tor, as opposed to businesses VAT has weakened. The net out‐ growing immensely this is be‐ and informal sector workers. come is a less than optimal col‐ cause of the current trends in Revenue from income tax, Pay lection of revenue under the VAT global economic governance in‐ As You Earn (PAYE), have sub‐ system. This could be largely fluencing Africa. Firstly, aid, stantially risen in the past five attributed to inefficient and in‐ which presently constitutes more years. It continues to show the comprehensive ways of VAT col‐ than half of state budgets in highest contribution towards lection. Basic measures to ensure some countries of in Africa, is government’s tax revenue. PAYE maximization of monies collected declining for various reasons, is four per cent of GDP. It is through VAT are not adhered to making tax revenues even more clearly, covering up for the inef‐ by many commercial entities and important for state incomes and there is no notable commitment in many ways positively impact‐ to enforce them, for instance, ing on state sovereignty. the absence of cash registers in Secondly, a number of countries many shops. A large section of in Africa have had a bad history business goes on with no record of indebtedness because of heavy of sale because of the lack of reliance on externally sourced such simple measures. The low loans for financing huge portions ficiencies in revenue collection levels of compliance need to be of national expenditure. The from other potentially taxable addressed by dealing with the scars of being poor and highly economies. problems identified by the VAT indebted and the resulting ser‐ regime. Some of these problems The Central Statistical Office vicing of these debts are a re‐ include; the sense of unequal and (CSO) Living Conditions Monitor‐ minder of the need for more ro‐ unfair treatment of compliant ing Survey (LCMS) of 2004 re‐ bust focus on alternatives for tax payers who bear a high bur‐ ports that “the 83 percent of revenue sources for governments den because of the large infor‐ Zambians who work in the infor‐ and taxes happen to be the most mal sector which gets away with mal economy ‐ fifty six percent paying tax and the significant feasible answer. of whom are based in the urban evasion that continues to go un‐ Thirdly, the increased integration areas ‐ pay no taxes at all.” This addressed; there are fairly high of the global economy means is despite many propositions to administration costs associated that countries are more open to formalize the informal sector to with VAT, high–monthly returns, international trade and invest‐ ensure that it effectively con‐ several audits, manual VAT in‐ ment. Hence developing coun‐ tributes to taxes. However, the voices etc. It has also been ar‐ tries have to be particularly vigi‐ Government is seemingly reluc‐ gued that the requirements are lant in deciding what agreements tant to impose taxes and imple‐ insensitive to commercial reality. and facilities they put in place to ment them with the requisite Clearly, in order to strengthen facilitate this trade. This is be‐ political will to attain revenue compliance in the VAT regime, cause the ability to choose their targets under the Government’s there needs to be greater clarity own tax policies and practices fiscal policy. This goes against and consistency on application of may be constrained because of the lip service paid each year to regulations in order to remove the need to adhere to the obliga‐ intentions of broadening the tax uncertainty and ensure that the base. In the words of Fjeldstad tions of international trade. collection process is cost effec‐ and Rakner (2003) “to meet the tive and simple for both taxpayer targets set by the IMF and Minis‐ and the tax authority. try of Finance, the revenue au‐ Challenges with current Tax thorities in Uganda, Tanzania policy and practice Zambia is one country with a pro‐ and Zambia have focused on liferation of tax exemptions to Zambia’s domestic revenue has increasing collection and com‐ corporations. Some of these are in recent years increased propor‐ pliance from existing taxpayers a direct result of World Bank tionately compared to external rather than attempting the policies that many countries have financing. But it appears the tax more complicated task of wid‐ burden distribution is heavily adopted focusing on policies to ening the tax base”. slanted towards the few eligible attract Foreign Direct Investment and potential tax payers in the Since Value Added Tax (VAT) (FDI) and increase exports in the country. The overall tax struc‐ replaced the Sales Tax in the mining sector. This has unfortu‐ ture still leaves much to be des‐ 1995 reforms, the VAT base has nately occurred in a manner that 4 2010 volume 1 TJN‐A newsletter

has not brought gains but has in‐ presents a dual problem: opment benefits of the invest‐ stead resulted in huge revenue ments are promoted. The compa‐ losses for government. These ex‐ 1) workers are deprived of basic nies in the MFEZs enjoy zero per‐ emptions are facilitated by labour safeguards that protect their cent tax on most of their opera‐ 89 human right to decent work; and tions for up to five years. The im‐ which gives the minister pow‐ pact on investment of these ex‐ ers to grant exemptions without 2) the Government is deprived of emptions is at best uncertain and recourse to parliament. At the potential tax revenue from high‐ potentially distortionary. FDI can same time, many experts have earning yet non‐tax paying informal best be attracted and the cost of advocated eliminating import employees. These are resources doing business reduced by directly taxes in order to liberalize trade necessary to provide the social ser‐ addressing the impediments to and lower tax rates on corporate vices envisioned by the National investment, such as poor infra‐ profits in order to compete with Development Plan. structure and transportation chal‐ other rate‐cutting countries. Con‐ lenges. sequently, trade taxes have been As Stern et al in a report for the particularly hard hit while in‐ World Bank (2000) contends “there The challenge facing many gov‐ creases in direct taxes, which is extensive evidence that growth is ernments is how to raise adequate cover mainly personal income, severely hampered by the existence resources through taxation with‐ have provided the easy way out of an informal sector working in par‐ out profoundly burdening the citi‐ for filling in financing gaps. It is allel with the formal sector." Sec‐ zens with obligations. This refers therefore imperative that a num‐ ondly, if the direct taxes like PAYE to the principle of effectiveness. ber of the tax exemptions be con‐ are to continue to be relied on Additionally, how to ensure that sidered for elimination, like some heavily then more jobs and opportu‐ the domestic tax polices formu‐ that perpetually exempt mining nities must be created through in‐ lated and the structures created companies from certain import centives for value addition in all responds to the needs of the peo‐ duties and those that have been economic sectors. It would aim at ple especially the poor. This re‐ laid out for the Multi‐facility Eco‐ increasing the pool of people con‐ fers to the principle of equity. nomic Zones (MFEZ) being estab‐ tributing to PAYE and not just the What is the case however, is that lished in Zambia. current four hundred thousand peo‐ the many taxes collected are not Governments have in some cases ple from a population of twelve mil‐ even seen to serve the people. had their hands tied by the devel‐ lion. It may be argued that the opment agreements they have structure of most of the taxes in ______signed with particularly foreign Zambia is a disservice to addressing investors. As a consequence, roll‐ equity and responding to the devel‐ …..many taxes collected ing back these exemptions proves opment needs of the people. There are not even seen to to be difficult. For instance, in are many taxes imposed on a low the mining sector in Zambia a income population. The reasonably serve the people. number of exemptions were part high income tax compared to com‐ of the development agreements pany tax; a VAT at sixteen point five ______Government signed with investors. percent which is considerably higher These were part of “stability peri‐ than the regional average of ten to Government collection, allocation ods” during which government twelve percent; carbon tax on mo‐ and distribution of public funds could not make any changes to tor vehicles excluding heavy pollut‐ lack the requisite transparency the tax regime (Fraser and Lungu, ing and profit making corporations; and accountability. Domestic 2006). These agreements overrule are examples of taxes structured revenue from taxes must not com‐ existing or future national legisla‐ with little consideration for the promise efforts at poverty eradi‐ tion and are legally binding with poor. Additionally, tax incentives to cation and national development. foreign investors which may have some lasting as long as 20 years. As such, considering the ever ris‐ the potential to promote invest‐ ing cost of living within Lusaka Is there a better way? ment, tend to deprive the Govern‐ and other towns in Zambia, evi‐ ment of essential resources for de‐ denced each month by the Firstly, domestic tax policy must livering the public social services it is not sur‐ address the issue of a broadened promised in the NDP. There must prising that the willingness to pay tax base and how this can be con‐ be a re‐evaluation and preferably, a taxes becomes less and less. tinuously factored in. Informal reduction of tax incentives for for‐ sector workers who represent the eign investors because of their ef‐ ______vast majority of workers in Zam‐ fect on developing countries such as Chilufya Chileshe, bia must be formalized. The lack Zambia foregoing revenues without Jesuit Centre for Theological Re‐ of formalization of the workforce ensuring that corresponding devel‐ flection, Zambia.

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Aid and Property Taxation in Francophone Africa

Introduction ‐public, Chad, Comoros, Côte white papers providing a framework d’Ivoire, Democratic Republic of for fiscal decentralization; support In a context where the need for the Congo, Gabon, Madagascar, in and revision of decentralization domestic resource mobilization Mali, Mauritania, Rwanda, and laws, implementing regulations and by African countries has become monitoring evaluation; more urgent, it has been widely Senegal). suggested that property tax The main conclusion drawn from would represent an important, if the documentation of property tax not the best, source of stable legislation and practices in the revenue at the sub‐national level studied countries reveals that in both developed and develop‐ property tax systems in these ing countries. However, if prop‐ countries are at their embryonic erty tax is an important potential stage of development; specifically source of revenue, especially at the ensuing coverage, assessment, local government level in many tax, and collection ratios have in developed and developing coun‐ general been low. This would ac‐ tries across the world, it remains count for the fact that property b) support a dire need of capacity true that property tax accounts tax is not utilized optimally as an ( for a small proportion of tax important own source of revenues building at the level of the Ministry of Finance, the Ministry in charge of revenue in many African coun‐ in francophone Africa. tries. To that effect, one author decentralization, and at the level of However, these property tax sys‐ elected local government councils observed that property taxation tems could yield buoyant tax is “one of the most lucrative . . . to assist them in local economic revenues if properly designed and yet least tapped sources of tax development; administered in tandem by central revenue to support urban govern‐ (c) elaboration of training manu‐ and local governments. Although als for elected local officials to be ment in Africa” (Mou, 1996). This the success of property tax re‐ is especially true in many franco‐ used around the country (Cheka forms in these countries would phone countries in Central and 2007). depend primarily on strong politi‐ West Africa. cal will, there is a role for devel‐ With greater property tax policy This paper briefly analyses prop‐ opment partners to play, particu‐ and administration authority, erty tax systems as practiced in larly in supporting tax administra‐ greater accountability to their some francophone countries by tion reform processes through ca‐ constituents, strengthened capac‐ identifying major issues and con‐ pacity building in the areas of fis‐ ity, and assistance from the cen‐ straints they face; it also ex‐ cal decentralization, governance, tral government, elected councils plores avenues to design and im‐ technical and would have strong incentive to maximize revenue plement more effective property m a n a g e m e n t ______tax reforms; and specifically, the skills, training, m o b i l i z a t i o n through an efficient role of aid in strengthening prop‐ computerization, …..property tax sys‐ erty tax as a source of national collection and tax system in order tems could yield buoy‐ to provide quality and/or municipal revenue. enforcement pro‐ services and pro‐ cedures. ant tax revenues if In the general conceptual model mote economic de‐ of property tax revenues, the Resource Mobili‐ properly designed and velopment. 2The effectiveness of any property tax zation – Avenues administered in tan‐ countries are Burk‐ system is a function of two policy for Aid ina Faso, Cameroon, choice variables, namely the dem by central and Central African Re‐ Fiscal Decen‐ definition of the tax base and the local governments. public, Chad, Como‐ tralization tax ratio, and three administra‐ ______ros, Côte d’Ivoire, tive‐related variables, namely D e v e l o p m e n t Democratic Republic the increase of the coverage ra‐ partners may of the Congo, Ga‐ tio, the valuation ratio, and the assist francophone countries in bon, Madagascar, Mali, Maurita‐ collection ratio (Kelly 2000). We designing and implementing their nia, Rwanda, and Senegal. analyzed the property tax system fiscal decentralization processes Tax Base Identification of thirteen Francophone coun‐ in many ways: tries along these main variables( Property tax systems throughout (a) support in and revision of pol‐ francophone Africa are also char‐ The countries are Burkina Faso, icy design and development of Cameroon, Central African Re‐ acterized by low coverage ratios. 6 2010 volume 1 TJN‐A newsletter

Development partners may assist Total Stations and GPS units, aerial publication of delinquents’ francophone countries in achieving and satellite photography, and names in newspapers, etc.) as comprehensive fiscal cadastres as Geographic Information Systems are not generally effectively possible through the following (GIS). implemented in these coun‐ means: tries. Tax Base Valuation (a) training of administrative staff; Donor agencies could help One of the most critical issues in francophone countries address (b) introduction of comprehensive many francophone Africa countries governance challenges by im‐ computerization in the tax ad‐ is the lack of capacity to assess proving transparency and re‐ properties. This is the process by ministration; ducing corruption in the tax which the property tax system (c) development of manual proce‐ system, and by improving tax‐ chooses the tax assessment basis dures for field data collections, payer education. It is impor‐ that would equitably allocate the tant to note that improving data processing and analysis; tax burden among properties in elected local officials’ ac‐ (d) matching contributions to fi‐ various jurisdictions in a country. countability to their constitu‐ nance Computer Assisted Mass In most of these countries, due for ents will come from empower‐ Appraisal (CAMA) system. Such a the most part to a lack of trained ing local governments rather system would expand the cover‐ and skilled valuers (in‐house, gov‐ than civil societies. age and valuation ratios and ernment and private valuers) and overhaul the ad valorem‐based ______insufficient resources for revalua‐ property tax system in franco‐ Nara Monkam, tions to reflect changes in property African Tax Institute, phone Africa; market values, valuation rolls are University of Pretoria, (e) Help modernize the Cadastre seriously outdated. . South Africa administration in these coun‐ Once again, donor agencies could tries and later on acquire topog‐ provide development assistance in raphical equipments such as the form of capacity building in the

Imposition des resources extractives en Mauritanie: Une Etude de Cas’ La Mauritanie est un pays minier de‐ Cadre juridique et organisa‐ ‐tion d’un quitus, la nature des puis 1953, L’exploitation des mines tionnel obligations, les attributions et de fer a atteint 11,2 millions de ton‐ organisations concernés concer‐ La législation mauritanienne dans nes en 2006, la SNIM a reversé à l’E‐ nant l’environnement. le domaine des mines est relati‐ tat mauritanien 57, 193 millions de $ vement étoffée ; avec un arsenal soit 15, 457 milliards d’ouguiyas et a composé de textes spécifiques apporté 185 millions de $ de devises aux mines (code des mines et ses au pays. L’exploitation de la mine différents textes réglementaires) d’or d’Akjoujt située à 200 km de et de textes transversaux qui Nouakchott à partir de 2007 par la s’appliquent à la matière (loi‐ Société des mines d’or de Tasiast cadre sur l’environnement, le Pays exportateur de pétrole depuis code général des impôts, le code février 2006, la production journaliè‐ du travail, le code des investisse‐ re en 2009 ne dépasse pas 13 000 ments et leurs différentes mesu‐ barils jours. La contribution à la ren‐ res réglementaires). te budgétaire selon la loi de finance Loi 99.013 portant code minier : tait de milliards do Miners at a mine shaft Le code minier s’applique à l’en‐ guiyas.Le secteur minier représente semble des opérations minières Loi 2002/ 02 Convention type actuellement entre 12 et 15% du PIB s’effectuant sur toute l’étendue minière : la Convention a pour de la Mauritanie, environ 60% de ses du territoire de la Mauritanie. objet de déterminer les condi‐ recettes d’exportation, 4% des recet‐ tions générales, économiques, tes budgétaires de l’Etat et 10% de Décret 2000‐ 054 portant appli‐ financières fiscales et douanières ses recettes fiscales.Le secteur pé‐ cation du code minier : ce décret dans lesquelles le Titulaire ou la trolier : l’effet de l’exploitation pé‐ précise les dispositions générales Société d'Exploitation procédera trolière sur le PIB est passé de 6,63% relatives à l’environnement dans aux travaux de recherche ou de en 2006 à 2,15%en 2007. les activités minières, précise les prospection. procédures à suivre pour l’obten‐

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Décret 99.160 relatifs aux titres L’ordonnance 008 – 2006 sur la l’activité minière (phases de re‐ miniers : Ce décret définit les gestion du fonds de revenus des cherche, d’installation, de pro‐ conditions et modalités d’applica‐ hydrocarbures (modifié) duction préliminaire et de produc‐ tion du code minier en matière tion normale). d’autorisation et de reconnaissance Au niveau du secteur minier, Limites de la politique fiscale des titres miniers. Il existe 3 régimes auxquels l’ac‐ tivité minière est susceptible dans les industries extractives Décret 139‐2000 sur la police des Superposition et confusion des mines : ce décret s’applique indif‐ d’être soumise : politiques fiscales : code minier, féremment aux travaux d’extrac‐ Le régime douanier sur les impor‐ convention minière, le code des tions à ciel ouvert ou souterrains et tations : investissements aux installations de surface. La fiscalité propre aux mines Faiblesse des services administra‐ Les textes de base du secteur pé‐ Et la fiscalité générale applicable tifs de recouvrement : prélève‐ trolier ment, assiette fiscale réelle. Ces différents régimes appliquent Loi 2004‐029 portant création du des droits et taxes qui varient régime fiscal simplifié au profit de selon la catégorie à laquelle ap‐ l’industrie pétrolière, cette loi pré‐ partient le bien (cinq catégories cise toutes les taxes, les impôts sont prévues par le code) et sur‐ Le contrat – type de partage de tout en fonction de la période où Abdoullaye Doudou Sarr production. l’on se situe par rapport à PWYP, Mauritania.

A Need for Disclosure: Foreign Aid, Investment and Trade in Resource Rich Countries There are two contradictory – and ‐ains (Collier, 2006). ‐ional relations literature on the equally important – schools of effects of “shaming” and monitor‐ thought about Africa’s economies. ing efforts of non‐governmental The first holds that Africa needs actors in pushing both govern‐ capital inflow more than any ments and non‐governmental ac‐ other region in the world to sup‐ tors to change policy, I conclude port its development initiatives that the best policy prescription and to provide basic emergency to overcome the “revenue curse” needs. In its recent report, the is to institute a monitoring mecha‐ Economic Commission for Africa This is why I describe capital in‐ nism that forces transparency on reiterates that the continent flow from all three sources both domestic and international needs capital inflow, be it in the (natural resources, foreign aid, actors (Risse 2001; Keck& Sikkink form of foreign direct investment and foreign investment) as a 1998; Finemore & Sikkink 1998; (FDI) or foreign aid (Lemi, 2008). “revenue curse,” borrowing Kevin Price 1997). The second holds that capital in‐ Morrison’s term (Morrison, 2008). For example, the damning reports flow‐ whether from foreign coun‐ I draw lessons from the expansive of Transparency International on tries or corporations, or inflows existing literature on capital in‐ the Angolan government’s misuse from the sale of natural resources flows and resource revenues to of resource revenues pushed some ‐ have negative effects on pre‐ argue that, while there is a gen‐ foreign companies to unilaterally cisely most of the problems they eral consensus on important nega‐ declare the amount of money are supposed to address (Morrison, tive side‐effects of these types of poured into the pockets of the 2008). The reason is that these revenues on state governance, Angolan government. I suggest revenues are “sovereign rents,” policy prescriptions on how to ad‐ that we need to institute this and as such are used at the dis‐ dress this problem are lacking mechanism in a more systematic cretion of the government, result‐ (Alessina &Dollaer 2000; Ross and formal manner. ing in the majority of cases in sta‐ 1999, 2001, 2004; Collier 2001, It is a truism that a state’s fiscal bilizing already problematic do‐ 2006; Morrison 2007, 2008). policies are highly malleable and mestic systems in both political This is the original contribution of can be influenced by domestic and economic dom‐ this paper: By turning to internat‐ and international actors alike. I 8 2010 volume 1 TJN‐A newsletter

argue that the monitoring power of problems are caused by the reve‐ countries with natural resources, non‐governmental actors and the nue these resources generate. foreign aid and investment effect of “shaming” on transparency (especially channeled through and accountability can be employed I then discuss existing policy rec‐ the government), is to create a as a potential solution of the ommendations – both tried and sug‐ monitoring mechanism that will expose the inflow of money to ______African governments and spend‐ ing patterns, a type of “audit” in It is a truism that a state’s fiscal policies are highly the manner that has been ap‐ malleable and can be influenced by domestic and in‐ plied to deal with human rights ternational actors alike. I argue that the monitoring abuses (for example, Human Rights Watch) and corruption power of non‐governmental actors and the effect of (Transparency International). “shaming” on transparency and accountability can be This recommendation is based on evidence that transparency employed as a potential solution of the “revenue “works” not only in shaming gov‐ curse.” ernments externally, but also in inciting domestic opposition. As ______such, this recommendation has consequences for foreign govern‐ “revenue curse.” gested – to address this problem, ments and corporations as well and the reasons for their failure. I as domestic ones. First, I discuss the importance of re‐ further review the literature on the examining the issue of sovereign effects of non‐governmental or‐ ______rents. This is followed by a review ganizations and transnational ac‐ of the literature linking natural re‐ Silvana Toska tors on domestic policies. sources and foreign aid and invest‐ Cornell University, USA ment to poor economic and political I conclude with a policy prescrip‐ outcomes, detailing how the major tion that the best way forward for

Changing the Investment Structure in Natural Resources: The Crucial Role of Taxation Resources

Oftentimes, discussions on the link investment can take different imports accounts for a good part between trade and development forms, and it will depend on this of the gap between export and tends to revolve around questions of form whether the ultimate devel‐ current account balance, the market access. It can be argued, opment outcomes are positive or income payments (profit remit‐ nonetheless, that the trade‐related negative. tances and royalty payments) financial policies have a much more item justify the rest. Thus, the Indeed, in African natural resource‐ crucial role to play in unlocking the positive impacts of export per‐ based economies the structure of potential of trade to support devel‐ formance of African countries investment bears special relevance opment. This is certainly the case in cannot be maximized without to reap benefits from trade. One Africa, as this article exemplifies by addressing the structure of in‐ observation that illustrates this looking at the fiscal and investment vestment. The limitations that a point is that while African coun‐ policies in the trade sector resource‐intensive model faces in . tries registered in the 2002‐2008 what is characterized as a grow‐ period the best six‐year export per‐ A good part of the structural re‐ ing ecological crisis only under‐ formance since the beginning of forms that African countries under‐ scores this point: not making the the structural reforms of the went in the last three decades in‐ most out of their exports is a lux‐ 1980s, a look at the current ac‐ cluded, alongside trade liberaliza‐ ury African countries cannot af‐ counts of Sub‐Saharan African tion, a liberalization of investment ford—probably no resource‐ countries in that six‐year period rules. The expectation was that lib‐ exporting country in the world eralized investment framework reveals that only one of those years can. would automatically lead to growth SSA countries registered a positive and development. But a vast –and quite small—current account In addition, natural resources amount of literature suggests that balance. While the high amount of constitute seventy percent of SSA 9 2010 volume 1 TJN‐A newsletter

countries’ exports. This has been real and stable real exchange rate competitive as local suppliers for the main reason behind the stag‐ to enable developing country ef‐ foreign ones are allowed and gering trade performance of Afri‐ forts to upgrade their trade profile could serve to influence the im‐ can countries’ exports in the years and industrialize. port content of foreign invest‐ before the crisis, which was justi‐ ment. Moreover, it is worth noting Taxation tools can also be utilized fied largely by price increases not only, in order to ultimately rather than volume increases, let affect the structure of the export alone changes in the export pro‐ ______sector, but to affect the structure file. This aspect, the structure of of investment. Given a certain ex‐ Taxation tools can also trade, is also heavily affected by port structure, different structures the structure of the investment be utilized not in order of investment that go into the sec‐ that goes into export sectors. tor can influence the level of bene‐ to ultimately affect the fits that can be derived by the lo‐ structure of the export cal economy via a spill over. In Taxation policies can be deployed other words, the aim of taxation sector, but to affect the with the purpose of shaping the policies would be to enable fea‐ structure of investment. Some of structure of investment. tures of the investment that end these policies can be utilized to up effectively transferring technol‐ ______affect the structure of trade, via ogy, creating employment in de‐ investment, such as the taxation on cent conditions and building local the rent of natural resources, on capabilities by fostering learning the TRIMS prohibition does not exports, or on financial flows. skills, backward and forward link‐ rule for service sector that is not ages, etc. in a service schedule. The management of the effective

tax rate on the rent of firms ex‐ Tax incentives are important tools porting natural resources can play Summing up, African countries in this regard. A solid stream of willing to realize the often‐ research has discredited the role of heralded development promise of incentives to attract foreign invest‐ trade are well‐advised to pay less ment—they have limited effective‐ attention to market access nego‐ ness, not to mention their negative tiations, and a lot more attention fiscal costs. But incentives can be to the need to utilize—and pre‐ used to shape the structure of in‐ serve and enlarge space for the vestment. Obviously, even in this use of— trade‐related financial case, incentives have fiscal costs policy tools. Taxation, one of the and those should be carefully con‐ areas of policy space where states sidered. But in spite of such ca‐ still preserve a great deal of veat, which should be born in an important role in changing the autonomy, maybe the best start‐ mind, incentives can be provided relative prices of natural resource ing point. to, for instance, ensure a certain exports compared with other sec‐ quality of the jobs and that local tors of the economy, whether ______workers are not only hired for low‐ these are non‐traditional exports of skill, low pay jobs. They can also natural resources, or other non‐ Aldo Caliari be used to ensure a transfer of traditional exports that the State is skills via training and capacity‐ interested in helping develop. In Center of Concern, U.S.A building. Tax incentives could sup‐ the case of export taxes, it is the port the transfer of technology and reduction in the relative export ______research and development (R&D) earnings from the product on which taxes are imposed that lead to a capacity. loss of relative profitability of the The use of incentives to foster lo‐ resource sector compared to oth‐ cal content poses additional chal‐ ers, thereby affecting the general lenges, as its use may be suscepti‐ structure of investment that goes ble to challenges as one of the into different sectors. Taxes on Trade‐Related Investment Measures capital flows can be designed to (TRIMs) banned in the World Trade stabilize or manage the value of Organization. But incentives pro‐ the exchange rate. In this case, the vided to national companies that tool would aim at achieving a high allow them to become more

10 2010 volume 1 TJN‐A newsletter

AFRICA AND SECRECY JURISDICTIONS – THE NEED TO RESPOND

Many citizens of developing not be well positioned to demand ap‐ the G20 and others are right to de‐ (and developed) countries now propriate international measures from mand that developing countries be have easy access to tax havens the G20 group of countries, the UN included in any mechanism to re‐ and the result is that these Tax Committee, OECD or others. quire increased transparency from countries are losing to tax ha‐ It is of particular regret that policy the havens. vens almost three times what research at the multilateral institu‐ In addition, there are clearly impor‐ they get from developed coun‐ tions has almost completely neglected tant differences in the exposure of tries in aid. If taxes on this in‐ these issues until now. What research developing countries of different come were collected billions of has been carried out, at least until income groups and regions, which dollars would become available these issues moved rapidly up the pol‐ warrant further investigation and to finance development. icy agenda, has largely been con‐ analysis, which is likely ultimately ‐ Jeffrey Owens, Director, OECD ducted by academics and civil society to lead to distinct policy recommen‐ Centre for Tax Policy Admini‐ researchers. dations being identified as appropri‐ stration, January 2009. ate. This paper shows clearly that the data We will set down new meas‐ which exists on bilateral trade and The table below shows, for different ures to crack down on those financial flows, while frustratingly groups of countries, the share of tax havens that siphon money limited in some areas, does provide a their exports, imports, portfolio from developing countries, money that could otherwise be Portfolio spent on bed nets, vaccina‐ Exports Imports Bank invest­ tions, economic development (goods) (goods) claims ment and jobs. East Asia and Pa­ ‐Gordon Brown, Prime Min‐ cific 49.4% 26.7% 87.4% 55.6% ister of the UK, March 2009 Europe and Central We stand ready to take agreed Asia 25.5% 18.3% 76.2% 41.2% action against those jurisdic‐ Latin America and tions which do not meet inter‐ Caribbean 61.5% 49.6% 83.3% 38.1% national standards in relation Middle East and to tax transparency. […] We North Africa 21.8% 21.2% 69.5% 23.7% are committed to developing proposals, by end 2009, to South Asia 49.2% 32.4% 87.0% 68.9% make it easier for developing Sub­Saharan Af­ countries to secure the bene‐ rica 39.3% 27.4% 84.5% 65.9% fits of a new cooperative tax Low income coun­ environment. tries 39.9% 28.4% 85.3% 50.5% ‐ G20 Declaration, April 2009. Lower­middle in­ come countries 45.0% 25.8% 86.0% 51.2% There is a growing consensus Upper­middle in­ that international measures are come countries 46.9% 35.9% 81.5% 42.9% required to limit the damage caused by tax haven secrecy – High­income OECD countries 33.8% 29.2% 53.8% 42.9% and that developing countries must be included to ensure that High­income non­ they benefit also. OECD countries 40.9% 30.8% 72.3% 49.2%

This paper brings together for sufficient basis on which to draw quite investment and foreign bank claims the first time international data clear conclusions about the relative that take place with those secrecy on trade and finance to consider exposure to tax havens, or secrecy jurisdictions which are ranked in the the extent of the linkages be‐ jurisdictions, of developing countries: Financial Secrecy Index developed tween tax havens (secrecy juris‐ specifically, that developing countries by the Tax Justice Network with dictions) and developing coun‐ do not appear in general to be any Christian Aid see http:// tries, with a particular focus on ( less exposed to secrecy jurisdictions www.financialsecrecyindex.com for Africa. Without better under‐ than are high‐income OECD countries, details of the index and the objec‐ standing of the nature of these and in some cases are much more linkages and the damage they tive criteria used to generate it). highly exposed; and therefore that cause, African policymakers will Compared to high‐income OECD 11 2010 volume 1 TJN‐A newsletter

countries, sub‐Saharan Africa is 100 indicates complete secrecy) in address the problem. more exposed in terms of its ex‐ the Financial Secrecy Index, Maur‐ An important demand, supported ports (almost forty per cent go to itius scores 96 and Luxembourg 87. by Christian Aid and the Tax Jus‐ secrecy jurisdictions) but slightly This makes it almost impossible for tice Network, is for a multilat‐ less in terms of imports (more than the tax authority, civil society or eral agreement to ensure the a quarter go to secrecy jurisdic‐ for Kenyan businesses to know automatic exchange of key infor‐ tions). It is in terms of portfolio where this money is really coming mation between all jurisdictions, investment flows, and deposits in from – and this in turn opens the including tax havens and devel‐ foreign banks (although the latter potential for all sorts of abuse, oping countries, so that much of data allows less certainty) that sub from tax dodging to money laun‐ the secrecy barrier is pulled ‐Saharan Africa is most exposed. dering, from bribery and other cor‐ down. Almost 85% of sub‐Saharan Africa’s ruption to abuses of market com‐ Greater exchange of information portfolio investment arrives on the petition. between African countries, e.g. continent after passing through – The data that exist allow govern‐ within regional economic areas, on paper at least – one or more ment and civil society in individual would represent a valuable first secrecy jurisdictions. In Kenya, for African countries to understand step and demonstrate both com‐ example, the two main sources of more about the nature of their own portfolio investment are Mauritius mitment and capacity exposure to secrecy jurisdictions, and Luxembourg, accounting for and on that basis to call for inter‐ ______almost two thirds of the total. Out national measures which will truly Alex Cobham, Christian Aid, UK. of an ‘opacity score’ of 100 (where

Public Resource Mobilization and Aid

The global economic crisis has internationally agreed standards taxes on the continent. Clearly, given a new impetus to the dia‐ against tax havens. independence from aid is within logue on domestic resource mobi‐ reach in Africa. The paradox is In Africa, poor revenue perform‐ lization across Africa. Falling com‐ that most African countries are ance is to a large extent the result modity prices and export reve‐ still heavily dependent on aid, of resistance from the ruling elites. nues, uncertain future aid flows States need tax revenue to func‐ and expected declines of FDI in tion and taxes are the primary the medium term have resulted in ______platform for political negotia‐ a general shortfall of external fi‐ tions among a country’s stake‐ where collected taxes have nance amidst generally high levels holders in the form of a social increased substantially in Af‐ of indebtedness across Africa. contract. Furthermore, increas‐ Notwithstanding an improved ing fiscal revenue on a sustain‐ rica, it is mainly due to an macroeconomic management over able basis increases ownership of increase in resource‐related the previous decade, the conti‐ government policies. The quality nent still has a long way to go to of taxation matters as much as tax revenues, on the back of meet its social challenges. Pov‐ the quantity raised by taxes. the resource boom that old erty is still widespread and public The literature is not conclusive and new commodity export‐ service delivery is often subject to whether aid should be considered unstable and unpredictable exter‐ ing countries have enjoyed. a curse or a benediction. Given nal flows and/or donor financing. the current state of play, African This report explores how public ______countries should enroll aid and resources can be better mobilized cooperation in an attempt to for development through more stimulate the mobilization of pub‐ while the continent overall has effective, more efficient and lic resources to facilitate Africa’s demonstrated that it can gradu‐ fairer taxation systems. graduation from aid. Aid used to ate from aid. Confronted with very large budget stimulate public resource mobiliza‐ The average African tax revenue deficits, governments around the tion can have a high ‐up to tenfold‐ as a share of GDP has been in‐ world are seeking to maximize multiplier effect on a country’s creasing since the early 1990s their fiscal revenues by strength‐ resources. And yet, donors have mostly as a result of taxes on the ening enforcement of tax evasion only spent little attention to public extraction of natural resources. and fraud; besides, the G20 has resource mobilization and improv‐ The ability of governments to made a priority of enforcing ing fiscal policies. Aid represents generate revenue via taxes on less than 10% of total of collected 12 2010 volume 1 TJN‐A newsletter

natural resource extraction ‐ing countries have enjoyed. Afri‐ the literature is that taxes should be seems to distract them from can economies are facing a num‐ levied at low and relatively flat more politically demanding forms ber of daunting challenges to col‐ rates on bases that have been of taxation such as corporate lect tax revenues other than on broadened through the elimination income taxes on other industries, resource‐relate activities. Some of personal income taxes, Value these challenges are structural, of exemptions and other loopholes. Added Taxes (VAT) and excise some are shorter‐term policy chal‐ Lower, simpler taxes are easier to taxes. lenges, while others are longer‐ collect and administer, and as cre‐ term policy challenges. Income taxes (mainly personal ating less inefficiency. Second, and non‐resource corporate) First, in terms of structural chal‐ countries should move away from have stagnated over the period. lenges, African economies are their current heavy policy being a And trade liberalization in Africa generally characterized by a per‐ prerequisite to address income ine‐ has translated into a reduction of vasively large informal sector. quality, upgrading the capacity of revenue from trade taxes since This informal sector is made out their tax administration is a key pri‐ the late 1990s. This reduction of micro‐ and small‐enterprises, ority. has been largely offset by indi‐ on the one hand, and of large rect and corporate taxes, and Redistributive strategies that are resource‐related tax revenues. copy‐cats of strategies prevailing in The average increase in taxes per countries with high administrative capita in Africa during the last capacity can be downright counter‐ two decades hides significant productive. If the goal is to pursue a differences in the performance genuinely redistribute tax strategy, of individual countries. In coun‐ better candidates are: raising fees tries like the Democratic Repub‐ lic of Congo, Guinea‐Bissau, on tertiary education, introducing Ethiopia, and Burundi, taxes per road tolls, car registration fees as traders and multinationals on the capita are as low as USD 11 per these are important consumption other. To make matters more inhabitant, for a year, whereas in complicated, most African coun‐ items for richer Africans. African countries like the Seychelles, tries are also hampered by serious countries could actually use excise Libya and Equatorial Guinea administrative constrains and with taxes more intensively and property taxes reach an annual USD 3600 generally low quality of public based taxes may also provide some per inhabitant. service delivery, fiscal legitimacy options for income redistribution. is typically weak. Elites that are more likely to pay A wide range of tax effort is ob‐ these taxes have an incentive to served in Africa. Some countries Second, in terms of shorter‐term frustrate this kind of legislation. collect as little as half of what policy challenges, the tax base of The challenge for African govern‐ they would be expected to while many African countries is unusu‐ ments is to demonstrate to elites others collect up to 2 to 3 times ally shallow even regarding the what they would be expected to. that they have a stake in a better types of taxes that African ad‐ In countries like Ghana, Lesotho, funded state by improving public ministrations should be able to Liberia, and Swaziland tax effort service delivery. collect, particularly, taxes on is high, other countries such as large corporations, domestic and Guinea, Madagascar and Mauri‐ foreign. Third, on a longer‐term tius tax effort is low. Estimates basis, African countries are chal‐ In the short‐run, strategies towards of tax effort for some African lenged to collect a more balanced more effective, efficient, and fair resource‐rich countries are highly set of taxes. This is all the more taxation in Africa typically lie with sensitive to resource‐related tax necessary that trade tax revenues deepening the current tax base in revenue. In Algeria, Angola, are bound to be further chal‐ administratively feasible way. Policy Congo, Equatorial Guinea and lenged by trade liberalization options include removing tax prefer‐ Nigeria tax effort switches from agreements. The lack of urban ences, dealing with abuses of trans‐ high to low when excluding re‐ cadastres and population censuses fer pricing techniques by MNEs and source‐related tax revenues. makes collecting urban property taxing extractive industries more In a nutshell, where collected taxes particularly challenging for fairly and more transparently. In the taxes have increased substan‐ local African administrations on longer‐run, the capacity constraints tially in Africa, it is mainly due top of the difficulty of collecting of African tax administrations must to an increase in resource‐ taxes on the elite. be released to open up policy op‐ related tax revenues, on the tions. The general recommendation of

13 2010 volume 1 TJN‐A newsletter

open up policy options. Finally, ______up with Africa’s explosive pace the longer‐term goal of generat‐ of urbanization and the corre‐ ing tax revenues from a more Urban property taxes as a sponding need for urban infra‐ balanced tax‐mix is addressed. tax policy instrument that structure. The report identifies urban can be made administra‐ ______property taxes as a tax policy tively feasible with the aid instrument that can be made of development partners Jean‐Philippe Stijns, administratively feasible with OECD Development Centre, the aid of development part‐ ______France. ners, is progressive and can

scale up with Africa’s explosive

TRANSFER PRICING, AND THE TAXING RIGHTS OF DEVELOPING COUNTRIES

There is now widespread recogni‐ independent enterprises. If cost sharing arrangements are tion of the importance of domes‐ companies artificially lower or also included. The identification tic resource mobilisation in de‐ increase prices for business of a comparable arm’s length veloping countries, and one key price for an intangible is prob‐ area within that relates to the lematic, given that intellectual tax revenues raised from multi‐ property, by definition, is often national companies. Central to unique to a company. Similarly, debate in this is the challenge financing and cost sharing agree‐ posed by transfer pricing, the ments within a company can be mechanism by which profit is agreed at non arm’s length prices allocated within each group of with implications for profitability companies. and tax payment. The complexity of this system On a conceptual level, critics purposes this has implications can lead to intractable disputes argue that the entire system is for the tax base of both tax over taxing rights and also en‐ based on the assumption that jurisdictions and for the tax‐ ables unscrupulous businesses to multinational groups can be payer. shift profits from countries evaluated as if they were aggre‐ where the capacity to monitor To address this problem, trans‐ gations of unrelated companies and challenge such behaviour is fer prices are governed by the transacting with each other at limited. ‘arm’s length principle’ (ALP), arm’s length. But multinational that is, the price at which a groups exist precisely because In addition, an imbalance of transaction would take place if there are some transactions that power is created when the tax the buying and selling entity do not occur on an economically administration in one country has were not related. efficient basis between unrelated more or better information, parties. more dedicated resources and To establish an arm’s length more political power than the price, a company should iden‐ The complexity presents some other. tify a comparable product in a particular challenges for devel‐ similar market which is traded oping countries, in particular, This can result in companies ap‐ between companies which the lack of effective transfer portioning greater profits to de‐ aren’t related. However, there pricing legislation, capacity to veloped countries to avoid the are a number of conceptual monitor transfer pricing issues, risk of transfer pricing disputes and practical problems with and transparency with regard to with an aggressive and politically this system. the financial activities of compa‐ powerful revenue authority. Intra‐group trade with MNCs nies. The transfer pricing model includes physical goods and ______Intra group transactions are not ‘intangibles’ such as intellec‐ exposed to the same market tual property or software. Ser‐ David McNair, forces as transactions between vices such as management and Christian Aid, U.K. insurance, and financing and

14 2010 volume 1 TJN‐A newsletter

AFRICA’S BANE: African countries are vulnerable to illicit cross‐border financial flows and tax evasion, so plans to turn Accra, Ghana, into a tax haven are potentially very harmful to the entire West African region, argues John Christensen The missing piece of the Africa’s 80 cents flowed outwards as capi‐ avoidance. development equation is the tal flight in the same year. impact of illicit financial flows, A creditor rather than a debtor including tax evasion, on capital Oil and financial secrecy – the accumulation and investment. Trade mis‐pricing accounts for a worst possible combination Illicit capital flows contributes large proportion of capital flight to financial crises and impose from Africa: In mid‐April 2007 former Ghanaian costs in the form of reduced President John Agyekum Kufuor as much as 60 per cent of trade investment, unemployment and announced plans to proceed with transactions into or out of Africa slower economic growth rates. setting up an offshore financial In addition, tax evasion fosters are mis‐priced by an average of 11 centre (OFC) in Accra in collabora‐ inequality, with wealthy citizens escaping the tax burden and tion with Barclays Bank, a British poorer citizens facing higher multinational bank. In his an‐ taxation and cuts in public ser‐ nouncement, President Kufuor ex‐ vices. pressed hopes that the creation of African countries are vulnerable an OFC would make Accra the fi‐ to illicit financial flows because nancial hub of the West African of their heavy reliance on the per cent, yielding a net outflow of region. What he did not discuss, extractive industries and other capital exceeding US$10 billion a however, is how this OFC can be natural resources and the conse‐ year. Fake transactions are esti‐ prevented from worsening Africa’s quent exposure to the risk of mated to account for an additional long‐standing problems with capi‐ falsified invoicing and transfer $150‐200 billion a year. Unhappily tal flight, tax evasion and other mis‐pricing. This vulnerability is the incidence of transfer mis‐ exacerbated by national tax ad‐ pricing and fraudulent invoicing corrupt activities. ministrations generally lacking has accelerated significantly: one Its geographical location makes sufficient resources to investi‐ study of import and export trans‐ Accra an ideal conduit for physi‐ gate complex tax evasion cases. actions between Africa and the United States found that between cally smuggling wealth out of The volume of illicit capital out‐ neighbouring countries. Trade mis‐ flows from Sub‐Saharan Africa 1996 and 2005 net capital outflows pricing is another way of shifting (SSA), plus the accumulated in‐ to the US grew from $1.9 billion to terest earnings from that $4.by companies.9 billion (an in‐ capital across national boundaries, money, has been estimated at crease of 257%) through the use of particularly when large sums are 145 per cent of the total exter‐ low‐priced exports and high‐priced involved. Trade mis‐pricing can be nal borrowings by SSA countries imports. in the mid‐1990s: meaning that Tax evasion amplifies the harm ______despite its massive external caused by this leakage of domestic debt burden, SSA is a net credi‐ capital. Tax evasion, tax avoid‐ Trade mis‐pricing is an‐ tor to the rest of the world in ance and other forms of corruption the sense that its stock of flight are estimated to reduce tax reve‐ other way of shifting capital held in privately con‐ nues in some countries by as much capital across national trolled offshore accounts ex‐ as 50 per cent, reducing the funds ceeds the stock of external debt available for public spending. Even boundaries ...... either held or guaranteed by the more sophisticated African governments. countries are severely impacted by ______According to one study of the tax evasion. The South African SSA region there is a clear link Revenue Service, for example, es‐ between external borrowing and timates that the tax gap in that country ranges up to Thirty billion conducted in a number of ways, over the period capital flight: rand (forty five per cent of govern‐ including mis‐invoicing, transfer 1970‐1996, for every dollar bor‐ ment revenue) largely due to eva‐ mis‐pricing, re‐invoicing through rowed from outside the region sion by rich individuals and an apparently unrelated trading 15 2010 volume 1 TJN‐A newsletter

partner in an offshore terri‐ countries and tax authorities in On the downside, however, tory, typically a tax haven, and most countries in the region given the existing capital flight other fraudulent invoicing when seeking mutual legal assis‐ problem of the West African practices. tance to investigate illicit finan‐ region, the omens are not cial flows and tax evasion. promising, as Raymond Baker But will the Ghanaian financial of Global Financial Integrity regulatory authorities have the commented in an interview necessary powers, resources, with this author in June 2007: and political support to pre‐ vent the OFC from becoming a “A mineral exporting nation conduit for illegal financial serving as an offshore finan‐ flows cial centre and secrecy juris‐ diction is surely the worst As the author of a Bank of combination possible. Ghana Working Paper on the Ghana’s own wealth will inevi‐ development of an OFC points tably get sucked into this out: ‘The anonymity of finan‐ black hole, driving apart rich cial transactions, opaqueness and poor and forestalling eco‐ of offshore corporations, and nomic development. Opting legal protections in some OFCs for such an unwise step should make them attractive to money Despite some limited potential signal the end of any further launderers.’ for economic diversification, the need for foreign aid.” The problem of financial se‐ economic benefits are unlikely to ______crecy is compounded by the be significant, particularly in fact that Ghana has no tax are view of the high cost of recruit‐ John Christensen not geared to handling the ing and retaining sufficiently extensive workload involved trained and experienced regula‐ Tax Justice Network information exchange agree‐ tory staff. International Secretariat, UK. ments with neighbouring

Summary: The Kenya Report Taxation and State Building in Kenya: Enhancing Revenue Capacity to Advance Human Welfare; Authored by Dr. Attiya Waris, Alvin Mosioma, Jack Ranguma and Matti Kohonen

This is the first ever ABC of The report goes deep and sheds Kenya’s tax policies are assessed Kenya’s tax regime, spanning some light on the philosophical by this report from the post inde‐ from its history, to its work‐ basis of taxation, by talking about ings, to the challenges and op‐ the social contract theory‐on a ______portunities. The authors of this broader basis. report are convinced that tax ….Budget policy making, systems can play a key role in It delves into Kenya’s tax history as an improvement from both furthering democratic down the time capsule to show what it was in the colo‐ representation, and ensuring how Kenya inherited its tax sys‐ higher standards of well‐being tem from its colonizers and goes nial era, as it lacked through wealth and employ‐ into the intricacies of taxation, consultation. ment creation in the country. the challenges Kenya faces com‐ It is in this light that they talk pared with its counterparts ______of tax systems, rather in the Uganda and Tanzania in not just technical terms of simply rais‐ at GDP level but also in fiscal per‐ ing revenues, but rather in formance and attracting and pendent fiscal reforms in the 60s terms of social development. maintaining FDI. to the oil shock in the 70s, the 16 2010 volume 1 TJN‐A newsletter

effect of the collapse of the While some resident’s associations ______like the one in Karen‐Langata in EAC (East African Countries) Nairobi have challenged taxes that had on Kenya, to the increase don’t allow for representation To “Massive poverty and in income tax rates. It also participate in a tax dialogue. looks at budget policy making, Taxation, as long as it is perceived obscene inequality are as unjust will hinder rather than as an improvement from what advance the commonly agreed such terrible scourges it was in the colonial era as it developmental targets. of our times …..that lacked consultation. Suggestions on how to improve tax they have to rank It goes further to measure dialogue in the country, are made alongside slavery and poverty, inequality and level of cap‐ital flight in Kenya, apartheid as social revenues raised for the decen‐ evils.” tralized funds, and other ‘ring ‐fenced' revenues with ‐ Nelson Mandela ‘earmarked’ expenditures, the main development fund, the former president of Constituent Development South Africa. Fund (CDF) has an allocation of Kshs 10.1 billion (US$ 1 bil‐ ______lion) levied at two point five per cent of general govern‐

ment revenue, a fact little known to many Kenyan tax‐ The recommendations have been payers. grouped into revenue mobiliza‐ tion, tax administration, tax pol‐ Further, it proposes that the A jua kali artisan at work icy, tax law, tax incentives, tax

government should provide avoidance and evasion of TNCs, and how to engage the citizens shelter to jua kali artists and taxing the underground economy, better in the formulation of policy their activities by extending improving tax information ex‐ both on the local level of under‐ business counseling services to change, taxation and govern‐ standing the structures of the de‐ them, studying the revenue ance, and further areas of re‐ centralized funds, as well as on potential in the sector and search in tax matters. Increasing the national level, to have a then taxing them fairly in ex‐ cooperation between tax and clearer picture of tax regulatory authorities, in the tax ______incentives, and on the administration research on tax international level, as gap should be publicized so that illicit capital flight is an Many 'Jua Kali' operators the citizens know their potential erosion of Kenya’s poten‐ would not even reach the and just how much of the poten‐ tial. tial revenue remains untapped in minimum tax threshold of PAYE or PIT they would only revenue mobilization. The report explains the ______be liable to registration and notion of a rights based licence fees, regulation and agenda in Kenya due to Summary by Catherine Njue VAT payments. social pressures. It delves further into the relation TJN‐A between tax and gender ______based needs. The full report can be found on the link below: change of a legal status. Recommendations on how to ety advocacy on tax issues, same for development. and proposes ways for differ‐ ent sections of the civil soci‐ ety to get active about tax.

17 2010 volume 1 TJN‐A newsletter

TJN Across the Globe Plate forme Paradis Fiscaux et judiciaires Objectif général Objectifs 2009 pays par pays. L'objectif général découle de la La plateforme a cherché à mesurer Nouvelle brochure sur les Paradis constitution de la plate‐forme l'impact des déclarations et leur Fiscaux et Judiciaires qui actuali‐ intitulée « Paradis fiscaux et ju‐ traduction dans la législation. Le se et complète celle publiée en diciaires » fin 2005 dans le cadre bilan est encore très insuffisant. avril 2007 et intitulée « Paradis des Objectifs du Millénaire, sur la Certes, les dirigeants des pays du base des travaux de la campagne G20 ont pris quelques orientations Fiscaux et Judiciaires, cessons le « 2005 ! ». contre les paradis fiscaux lors de scandale! » . Sa parution est pré‐ leur rencontre de Londres le 2 avril vue pour le premier semestre ls ont pris por rfrence 2010. : Oxfam France‐Agir une liste de paradis fiscaux établie Ici, Association Sherpa, ATTAC, Résultats selon des critères fixés par l’OCDE, CADTM, CCFD, CRID, Réseau Foi Même si les résultats du travail de liste que nous avons critiquée pour et Justice, Secours Catholique, cette coalition ne pourront s’éva‐ ses insuffisances. En effet, de nom‐ Survie*, Transparence Internatio‐ luer que sur le long terme la pla‐ breux paradis fiscaux ont signé en‐ nal France, Anticor, Terre Soli‐ te‐forme associée à d’autres cam‐ tre eux des conventions fiscales, ce daire, SNUI, Les Amis de la Ter‐ pagnes a réussi en 2009 à : qui a suffit pour que l’OCDE les re, Syndicat de la Magistrature. ‐ poursuivre les contacts avec les retire de sa liste grise tels les îles pouvoirs publics, en particulier Cayman, les Bermudes, Monaco et l’Elysée, Bercy, mais aussi l’OCDE L'analyse que nous avions faite Gibraltar qui sont désormais et le GAFI pour échanger nos est désormais partagée par les "blanchis". points de vue et faire valoir nos décideurs politiques qui ont com‐ Temps forts 2009 recommandations mencé à s'engager en déclaration ‐ contribuer à sensibiliser le grand au moins. Ces territoires posent Plusieurs initiatives ont été condui‐ public sur toute l'attention à por‐ en effet le problème de tes par la plateforme (site: www. ter à la question des PFJ. La péti‐ « l’injustice fiscale ». Comment argentsale.org) tion lancée par le journal ne pas réagir face à la concurren‐ ‐ Campagne Stop PFJ « Pèlerin » avec plusieurs mem‐ ce fiscale déloyale de certains bres de la plateforme a recueilli pays qui n’aboutit qu’à priver Début octobre, une campagne a 30 signatres i ont t re d’autres de ressources essentiel‐ été lancée intitulée « Stop PFJ » et mises à la Présidence de la Répu‐ les pour leur développement. Ces destinée à sensibiliser les diffé‐ blique en mars 2009. territoires favorisent aussi l’opa‐ rents acteurs publics français sur la cité du système monétaire inter‐ nocivité des Paradis Fiscaux et Ju‐ Pistes à explorer national et encouragent la cor‐ diciaires. Quatre cibles prioritaires Ne partageant pas l'optimisme du ruption et les détournements de ont été définies: territoires et col‐ Président de la République dans fonds publics. lectivités locales, citoyens, syndi‐ son discours à Davos « Sans le cats et entreprises. Ces acteurs ont La crise financière qui a explosé G20 il n’aurait pas été possible été invités à signer une pétition en en 2008 a mis en avant l'effet de venir ot des paradis d'entraînement des paradis fis‐ ligne. fiscaux », nous nous imposons un caux (même s'ils n'y sont pas à ‐ Contacts avec les représentants devoir de vigilance et nous réagi‐ l'origine) du fait notamment de la du gouvernement français rons en 2010 en fonction des évè‐ présence des trois quart des Hed‐ nements de l'actualité. La plateforme a participé à de ges Funds logés et prospérant nombreux rendez vous au Ministère Nos recommandations les plus ur‐ sans contrôle dans ces territoi‐ des Affaires étrangères et euro‐ gentes visent à établir une liste res. péennes et à Bercy pour souligner réaliste des PFJ qui aille bien en‐ L'objectif général est de lutter les insuffisances des critères rete‐ tendu au‐delà de celle de l’OCDE. pour la transparence à tous les nus par l'OCDE pour l'établissement Par ailleurs, la coalition demande niveaux et contribuer au déman‐ des listes, le « multilatéralisme » des mesures de contraintes auprès tèlement des paradis fiscaux tels pour l'échange d'information, l'in‐ des acteurs et intermédiaires fi‐ qu'ils existent encore aujour‐ formation sur les trusts et la trans‐ d'hui. parence des multinationales en nanciers pour venir à bout des mettant en place un « reporting » PFJ.

18 2010 volume 1 TJN‐A newsletter TJN Across the Globe Sierra Leonean CSOs Meet to Discuss Taxation A three day tax advocacy training services tax perceived as additional rights holders and duty bearers. It workshop was organized collabora‐ tax burden, but concerns about con‐ provided the opportunity to en‐ tively by Christian Aid, Sierra tinuous loss of revenue from mining gage in policy discussions on taxes Leone, the Budget Advocacy Net‐ corporate taxation, tax concessions as an entry point to understanding work (BAN) and the National Advo‐ and range of other revenue streams how tax policy works and its im‐ cacy Coalitions on Extractives such as custom is a major barrier to pact on citizens and finally pro‐ (NACE) on tax advocacy issues. The government efforts to generate mote wider stakeholder engage‐ event brought together over forty needed revenues for national devel‐ ment in taxation issues and tax participants from various civil soci‐ opment. The workshop could not policy decisions that should re‐ ety organizations , trade union have been organized at a more ap‐ flect the priorities of the people groups, consumer and trade associa‐ propriate time than now as it pro‐ of the Sierra Leone. A commu‐ tions, revenue and tax agencies, the vided the needed space for civil niqué issues by the participants media and donor agencies. society engagement on wider issues emphasised on the need for sensi‐ around domestic tax, mining and tisation on the importance of The event was a follow up to the international taxation. taxation and to engage policy West African Tax Seminar held in makers on three aspects of taxa‐ Ghana in October 2009 to which The workshop aimed to provide the tion. Domestic Taxation ‐ includ‐ three participants from Christian civil society groups with the skills, ing Goods and Services Tax‐ Min‐ Aid, BAN and NACE participated. knowledge and understanding to ing Taxation and International Tax work is a relatively new area of engage effectively on tax justice Taxation. Plans are underway to work for civil society activities in issues. The organisers sought ways carry out a country study on taxa‐ the country. Civil society engage‐ of promoting demand‐side account‐ tion to be used to inform policy ment in promoting advocacy around ability & transparency in revenue discussion between CSOs and pol‐ tax was identified as a missing link generation and utilisation and im‐ in policy debate especially so with prove the social contract between icy makers in Sierra Leone. the recently introduced goods and the state and citizens vis‐a‐vis ______Alvin Mosioma, TJN‐A

Atelier Francophone de Publiez Ce Que Vous Publiez La coalition Publiez Ce Que Vous Sandra Kidwingira, la Coordinatrice finale de l’atelier, il a été recom‐ Publiez Afrique a organisé du 29 Assistante du Réseau pour la Justice mandé aux : janvier au 02 février 2010 à Fiscale‐ Afrique (TJN‐A en Anglais) a Abidjan en Côte d’Ivoire, un ate‐ participé à l’atelier et fait une pré‐ Aux gouvernements d’Afrique fran‐ lier régional pour les coalitions sentation intitulée ‘régimes fis‐ cophone, d'harmoniser les codes francophones en Afrique. Le thè‐ caux : opportunités et défis pour fiscaux au niveau régional et d'ac‐ me de l’atelier était ‘Renforcer l’Afrique’ au cours de la deuxième corder des exonérations fiscales la campagne PCQVP et le plai‐ journée. L’intervenante a donné les uniquement pour la phase d’explo‐ doyer pour une gestion transpa‐ recommandations suivantes pour ration ;Aux gouvernements du rente et responsable des ressour‐ l’établissement de régimes fiscaux Nord, de pousser pour l'adoption de ces naturelles en Afrique franco‐ favorables au développement en normes comptables favorisant la phone.’ Plus de 40 participants Afrique : joindre les efforts dans le transparence des paiements effec‐ ont participé à l’atelier. plaidoyer pour l’établissement du tués par les entreprises ; ‘Reporting pays par pays’ ; plaider L'atelier avait pour objectif le en faveur de l’harmonisation fiscale Aux entreprises extractives, de renforcement des capacités des au niveau sous‐régional ; implica‐ fournir les informations nécessaires coalitions francophones à mettre tion des organisations de la société quant aux paiements effectués aux en œuvre les objectifs de la civile dans le processus lié à la vi‐ gouvernements pour permettre un campagne PCQVP et plaider pour sion 2050 pour l’industrie minière reporting pays par pays. une gestion transparente et res‐ en Afrique ; ainsi qu’une meilleure ponsable des revenus issus de planification des exonérations fisca‐ ______l'exploitation des ressources na‐ les pour ne pas favoriser « la course Sandra Kidwingira, Reseau pour la turelles en Afrique francophone. vers le bas ». Dans la déclaration Justice Fiscale Afrique. 19 2010 volume 1 TJN‐A newsletter

News & Events Atelier régional sur la fiscalité en Afrique centrale-

Le Réseau pour la Justice Fisca‐ tants d’organisations de la société tions de la société civile re‐ le en partenariat avec le Cen‐ civile provenant des pays sui‐ présentés à l’atelier en vue du tre Régional Africaine pour le vants : République Démocratique lancement d’une campagne Développement Endogène et du Congo, République du Congo, pour la justice fiscale dans Communautaire se propose d’or‐ Centrafrique, Tchad, Gabon et leurs pays respectifs. ganiser un atelier régional sur la Cameroude la réunion sera de lan‐ fiscalité en Afrique centrale au cer le débat sur la justice fiscale ______mois de juin 2010. en Afrique Centrale. Reseau pour la Justice Fiscale L’atelier se déroulera à Yaoundé Le résultat principal escompté de Afrique. au Cameroun. Les participants à l’atelier sera la formulation de plans d’action pour les organisa‐ cet atelier seront les représen‐

TEN KEY EVENTS IN TAXATION WORLDWIDE

1. Civil society responded to Discussions focused on tax ex‐ 8. A the OECD black list of tax emptions given to foreign in‐ was issued uniting the hu‐ havens throughout the year, vestors, and in particular the man rights and illicit finan‐ by organising events high‐ mining companies. cial flows campaigners lighting the perils of finan‐ stating that tax crimes and 5. The IMF bail‐out of Jamaica cial secrecy, culminating to money laundering put hu‐ provoked protests against the protests. government across Jamaica on man rights at risk. 2. The Tour de France mob‐ the 23rd December 2009. The 9. A was ilized protests around the bail‐out included increases in issued following the Pan‐ tax haven status of Monaco taxation for residents, and African Conference on where the tour started on lower taxes for international Taxation and Development the 3rd July. Further pro‐ finance investing in the Ja‐ (see page 22 for the decla‐ tests were organised in maica Offshore Financial Cen‐ ration). other tax havens of Andorra tre. 10. The Greek Financial Crisis on the 10th July, Switzerland 6. European‐wide solidarity was provoked unrest in Athens on the 19th July and on the mobilised on Octobre 15th when on several occasions, while Franco‐Swiss border of An‐ the Luxembourgish government Greek capital left the necy on the 23rd of July with repressed a study by the country at an unprece‐ banners “tax haven, social dented rate seeking safe hell”. condemning haven in Switzerland as the 3. The UK interfaith gathering the tax haven provisions in the main destination. of the Green Belt Meeting in Grand Duchy. August 2009 issued for the 7. The cele‐ first time that tax is a de‐ brated 10 years of its existence velopment issue. in a series of events in the 4. For the first time civil soci‐ Southern Brazilian city of Porto ety took part in the Alegre between 30‐31st January , which was organ‐ 2010. Events focused on alter‐ ised in Accra between the ‐natives to the global financial 15th to 21st September 2009. system.

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Profile: Jean Mballa Mballa Quelle est votre formation acadé‐ Pourquoi êtes‐vous particulière‐ mique? ment intéressé par les questions de justice fiscale en Afrique? Je suis titulaire d’un M.Sc in Agri‐ cultural Education, obtenu à l’Uni‐ Je peux dire que par nature et par versité de Reading en Grande‐ éducation, je suis sensible au Bretagne en 1999, après des étu‐ concept “Justice”. Le droit et le des en agronomie au Cameroun. devoir sont pour moi des principes Jean Mballa Mballa, Directeur CRADEC, Quels sont vos centres d’intérêt de vie. Et ces principes doivent être équilibrés. La Justice fiscale en Afri‐ Cameroun’ auxquels vous le plus dédié? que est une innovation dans le quo‐ Comment pourriez‐vous décri‐ Je suis plus dévolu au développe‐ tidien des citoyens et des profes‐ re et évaluer le progrès récem‐ sionnels du développement que nous ment communautaire en général. ment réalisé en matière de po‐ sommes. Historiquement, l’impôt J’ai travaillé au Ministère de l’Agri‐ litiques publiques en Afrique culture au Cameroun de 1983 à est mal perçu, particulièrement en (aussi bien au niveau national prs mon master e sis Afrique et au Cameroun. Lorsque rentré au Cameroun où j’ai exercé j’ai fait connaissance du réseau TJN que régional) conduisant vers dans un programme de micro‐ lors du Forum Social Mondial à Nai‐ plus de justice, démocratie et crédit appuyé par la Banque Mon‐ robi en 2007, en suivant la philoso‐ développement pour le conti‐ phie et la vision, je me suis dit « Un dial de 1991 à 1996. J’ai intégré le nent? monde des NGO où j’ai passé 8 ans autre regard est possible sur l’im‐ dans une ONG régionale (APICA). pôt : un impôt qui fait justice au Au moment où le continent afri‐ Depuis 2006, je suis au CRADEC. Je citoyen, au pays et au continent » cain rentre dans le cinquantenai‐ précise que le CRADEC est une as‐ Depuis lors je m’investis pour vulga‐ re des indépendances, le progrès sociation d’appui de droit came‐ riser le réseau et sa vision au sein dans la démocratie, plus de jus‐ rounais créée en 1996 avec un des organisations de la société civile tice dans le développement est groupe de collègues, ayant pour camerounaise. Et ce n’est pas facile décevant. Les conditions d’octroi intérêt commun notre contribution à cause des stéréotypes sur la fisca‐ des indépendances ont été très dans le développement local. lité. défavorables à la promotion de la démocratie et du développe‐ En quoi consiste votre travail ac‐ ment des communautés, les dé‐ tuel et quels en sont les princi‐ A votre avis, quel rôle devrait cideurs politiques ayant gardé paux axes? jouer les organisations de la socié‐ une forte complicité de gestion té civile en vue d’arriver à une avec leurs anciens maîtres colo‐ Mon travail est essentiellement axé justice fiscale en Afrique ? nisateurs. La coopération étant sur le développement communau‐ un jeu d’intérêts, «le chef a tou‐ taire. En tant qu’Ingénieur Les organisations de la société civile jours raison …. » permettez‐moi Agronome, je suis un professionnel africaine sont déjà regardant sur les cette image. La preuve, tous les du Monde rural, dans un premier questions de Justice économique: dirigeants africains affichent temps. Je travaille ainsi avec les commerce équitable, capitalisme à avec fière allure l’estampille « communautés rurales à la base. visage humain, coopération gagnant PPTE‐Pays Pauvres Très Endet‐ Cependant mon travail avec les ‐gagnant. Le rôle de cette société tés ». Qu’a‐t‐on fait avec les communautés m’invite à traiter civile sur une fiscalité juste serait sommes empruntées donc le aussi bien des questions de produc‐ celui de l’éducation des contribua‐ remboursement engage tout le tion rurale que des questions trans‐ bles. Education pour leur devoir et monde ? Les femmes très actives versales qui touchent ces commu‐ pour leur droit. Elle doit jouer un sont cantonnées dans des respon‐ nautés que soit en amont comme rôle d’interpellation et de plaidoyer sabilités de second rang ; la jeu‐ en aval. Mon travail repose ainsi auprès des administrations et des nesse « Fer de lance de la na‐ sur les questions de dialogue ci‐ décideurs politiques. De cette ma‐ tion » au chômage prend de la t o y e n e n t r e a c t e u r s nière, les mentalités vont changer rouille dans la rue quand elle ommnats torits et de dans la perception et les politiques n’est pas l’objet d’instrumentali‐ prestations dans la mise en œuvre fiscales en Afrique. sation politique. C’est une injus‐ des programmes. tice. Cependant la pluralité des voix dans le débat politique et notamment l’émergence d’une société civile de plus en plus

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structurée, à la quête d’une matu‐ Que pensez‐vous de l’idée de Avez‐vous une philosophie par‐ rité citoyenne, donne un espoir faire un inventaire du poten‐ ticulière ou un slogan que vous pour une évolution significative tiel de ressources naturelles suivez au quotidien ? pour plus de justice dans le déve‐ des pays Africains? Comment loppement et la démocratie. Ma philosophie de la vie est por‐ les pays africains peuvent‐ils tée par le principe de l’Autopro‐ procéder pour faire cet inven‐ motion. Nous devons compter Quelles sont, selon vous, les plus taire? d’abord sur nous‐mêmes et re‐ urgentes mesures à prendre pour chercher des complémentarités s’assurer que les pays africains Le potential de gisements des auprès des autres. Un bébé qui soient capables de financer leur richesses du sous‐sol africain apprend à marcher compte sur développement? est connu. Il est énorme. Ces ces deux jambes et prend appui gisements existent depuis des sur sa mère. Cet appui prend Le pas impératif à franchir pour millénaires et le sont non pas finaprès un certain moment et une souveraineté de financement par la force de l’homme mais rend autonome le jeune bébé. Il du développement africain passe par la nature. La partition du n’y a pas meilleure image de par l’intégration politique du conti‐ continent par les européens a l’autopromotion pour moi que nent. Je suis partisan d’une Afrique « localisé » ces richesses dans celle‐là ! unie. Les Etats doivent consolider les différents Etats. L’intégra‐ leur souveraineté nationale par une tion politique évoquée plus ______souverainement continentale et haut permet une évaluation et aborder les questions par des posi‐ une appropriation commune tions communes. C’est un impéra‐ des différentes richesses entre tif! Etats ou dans les regions.

Qui devrait prendre ces mesures? Votre profession reflète – t ‐ La société civile africaine a pris un elle ce que vous avez tou‐ engagement dans ce sens. Un pro‐ jours rêvé de faire ou votre jet de constitution des Etats‐Unis carrière constitue‐t‐elle un d’Afrique fait l’objet d’une campa‐ détour? gne pour un pré‐référendum par le Oui, je fais ce que j’ai toujours peuple devant conduire à un refe‐ souhaité faire. Le travail que rendum official par l’Union Africai‐ je fais en ce moment n’est pas ne. certes très lucratif, mais il me permet de m’épanouir.

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