World Bank Group (WBG) Needs to Do More
Taxation is the leading source of income for many developing countries around the world according to World Bank Group (WBG).
In the past, we’ve observed capital controls and protectionism as a means for developing countries to protect their industries from global competition.
It is sad that a neo-liberal believes that all small countries that run deficit budgets are banana republics.
I’ve been thinking and studying the World Bank Group (WBG) Doing Business reports for some years now. These reports uses some indicators to rank countries around the world. Countries with lower taxes combined with administrative efficiency get ranked highly.
The Doing Business ranking looks at lower corporate taxes favorably. Countries which introduce new taxes get lower ranks.
We urge World Bank Group (WBG) to work towards assisting countries to improve their tax administration and enhance compliance as well as collection capacity. It will also be better if World Bank Group (WBG) can help countries to reduce evasion and tax avoidance.
We believe that World Bank Group (WBG) can play a greater role in stopping ilicit financial flows around the world. In Africa it is worse. For instance, in 2013 alone Africa lost a whooping USD$1.1 trillion of potential taxable resources to illicit financial flows.
Public Private Partnerships (PPPs)
World Bank Group (WBG) has made it an habit of advising countries which do not have their own resources to get into PPPs as a means of financing various projects. This means of raising resources has a number of weaknesses. This makes the Doing Business Ranking quite misleading.
We want World Bank Group (WBG) to show and practice seriousness if they want to achieve Agenda 2030. In that regard, World Bank should align its work to support United Nations in its work on international tax compliance and promote the capacity of governments to collect taxes adequately, equitably and more efficiently.
we will keep updating you on this topic…