The paradox that natural resource rich countries in Africa have failed to lift their people out of poverty has been romantically described as a “curse”, suggesting that governments are powerless to free themselves. But the reality is that a series of methodical steps can help the potential profits from oil, gas and diamonds to benefit all citizens.
“Governments need to see themselves as custodians – and not the owners – of natural resources; managing them responsibly and transparently on behalf of current and future generations,” said UK MP Lynne Featherstone in a speech on international development earlier this year.
Easier said then done, but unravelling the paradox of resource-rich people-poor countries is crucial to the future development of the continent, and policymakers, civil society, corporations and international bodies all have a role to play.
“Africa loses twice as much in illicit financial outflows as it receives in international aid,” said Kofi Annan in a foreword on the issue for the Africa Progress Report 2013.
“It is unconscionable that some companies, often supported by dishonest officials, are using unethical tax avoidance, transfer pricing and anonymous company ownership to maximize their profits, while millions of Africans go without adequate nutrition, health and education.”
So how can developing countries generate more revenue from their natural resources to benefit all citizens? How can tax inspectors in developing countries stay one step ahead of large corporations’ expert accountants and lawyers? How can governments strike a balance between keeping taxes low enough to attract investment and high enough to fund public services?
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The live chat is not video or audio-enabled but will take place in the comments section (below). Get in touch via globaldevpros@theguardian.com or @GuardianGDP on Twitter to recommend someone for our expert panel. Follow the discussion using the hashtag #globaldevlive.
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