Can Africa curb illicit cash flow?

[88m3]

Continent-wide problem results in over $1 trillion siphoned off since 1980.

Inside Story Last updated: 27 Apr 2014 20:56

African leaders have been meeting in Bahir Dar in Ethiopia to find a way to stop vast sums of money from being illegally taken out of Africa.

Many countries on the continent are experiencing remarkable economic growth, but illegal financial dealings prevent this growth from translating into better living conditions for many African citizens.

The cash outflow is the result of many factors, including poor financial regulatory frameworks, weak and non-harmonised tax regimes and opaque public procurement and contracting. Criminal networks are also to blame.

But what will it take to properly address the issue? And is political will alone enough?

Presenter: Hazem Sika

Guests:

James Schneider, editor of Think Africa Press. He specialises in equitable development in Africa.

Aly-Khan Satchu, CEO of Rich Management. He is also an economist and author.

Francois Ndengwe, founder of the African Advisory Board, which deals with economic development, and a founding member of the Congress of African Economists.

Can Africa curb illicit cash flow? - Inside Story - Al Jazeera English

 

[burner]

no

 

[CopiousX]

no

Well said. A man of few words.





I know it’s been a few years since this question was asked, but things have changed since then. I think the easiest solution may be blockchain/crypto currency transactions.


Y’all can correct me if I’m wrong, but it seems that corruption and illegal withdrawals occur due to human error and secrecy. Modern crypto would opperate in a public ledger so that each transaction is visible to all members within the system(so currency wouldn’t magically disappear).



The only two issues here would be

• Implementation. I believe Zimbabwe did a botched attempt at this after their 2 new currencies failed, but their crypto system failed because the people had no faith in an intangible currency. Furthermore, an intangible currency from a corrupt govt garners even less faith from its people.

• Inability to engage in domestic monetary policy. Most crypto frameworks are foreign. Most crypto frameworks also operate under a limited supply of currency. These limitations prevent a nation from increasing money supply to fix economic downfall, or to reduce monetary supply to raise central banking interest rates.

 

[2Quik4UHoes]

In Ethiopia, in 2014? Lmaoo, the govt was siphoning money out but they wanted to host some shyt like this?

 

[Cynic]

 

[CopiousX]

That post to username correlation



Any idea on how to fix it?