Topic > Removing Constraints on Government Services - 1295

Removing Constraints on Government Services Government revenues can be diverted from basic services due to corruption. Funds from aid and natural resources are often sent by government individuals for money laundering to foreign banks that insist on banking secrecy, instead of spending on the poor. A Global Witness report called for more action from Western banks as they have proven capable of blocking the flow of terrorism-related funds. Illicit capital flight from developing countries is estimated to be ten times the amount of aid they receive and double the debt service they pay. About 60% of illicit capital flight from Africa results from transfer pricing errors, where a subsidiary in a developing nation sells to another subsidiary or shell company in a tax haven at an artificially low price for pay less taxes.] An African Union report estimates that about 30% of sub-Saharan Africa's GDP has been transferred to tax havens. Solutions include “country-by-country reporting” in which companies disclose activities in each country and then prohibit the use of tax havens where no actual economic activity occurs. Servicing developing country debt to richer country banks and governments can limit government spending on the poor. . For example, in 1997 Zambia spent 40% of its total budget on repaying external debt and only 7% on basic government services. One of the ways proposed to help poor countries has been debt relief. Zambia began offering services, such as free health care, even as it overburdened its health infrastructure, thanks to savings from a 2005 round of debt relief. The World Bank and the International Monetary Fund, as major holders of the debt of developing countries, set structural adjustment with... paper rates of GNP per capita in world income, with an average growth rate of 4.7% per year for the same period. The statement adds that the state completed more than 95 percent of the Millennium Development Goals in 2012, two years ahead of schedule. According to a report produced in collaboration with the United Nations Development Programme, the concepts and indicators of poverty do not apply to the UAE society, based on the level of economic growth, accompanied by an increase in living standards. The statement concluded that the source adopted by the newspaper does not count, Vojhzh intelligence, its importance, is not a statistically dependent reference, what matters only for the official data of the states, are the national statistical agencies, and on the other part, a source adopted by international organizations in the preparation of periodic reports.