NGO
Another Way (Stichting Bakens Verzet), 1018 AM
Edition
03: 22 April, 2010
01. E-course : Diploma in
Integrated Development (Dip. Int. Dev)
SECTION A : DEVELOPMENT PROBLEMS.
Study value :
04 points out of 18.
Indicative
study time: 112 hours out of 504.
Study points
are awarded only after the consolidated exam for Section A : Development
Problems has been passed.
First block : Poverty and quality of life.
Study value :
02 points out of 18.
Indicative
study time: 57 hours out of 504.
Study points
are awarded only after the consolidated exam for Section A : Development
Problems has been passed.
First block : Poverty and quality of life.
First Block : Section 1.
Analysis of the causes of poverty. [26.50 hours]
First Block : Section 2. Services needed for a good quality of
life.
First Block : Exam. [ 4 hours each attempt]
Block 1 of Section
1. Analysis of the causes of poverty. [26.50 hours]
Part 2 : In depth
analysis of the causes of poverty. [14.00
hours]
01. In depth : definition
of poverty.
02. In depth : some
factors linked with poverty.
03. In depth : debts and
subsidies.
04. In depth : financial
leakages : food and water industries.
05. In depth : financial
leakage : energy.
06. In depth : financial
leakage : means of communication..
07. In depth : financial
leakage : health and education.
08. In depth : financial
leakage : theft of resources.
09. In depth : financial
leakage : corruption.
10. In depth : the
industry of poverty.
Report on Section 1 of
Block 1 : [06.00 Hours]
Part 2 : In depth
analysis of the causes of poverty. [14.00
hours]
09. In depth : Financial
leakage : corruption. (At least one hour).
Consider this slide :
09. Financial leakage: corruption, export of
financial means, tax havens.
Corruption
Foreign accounts in industrialised countries, especially those in tax
havens.
“Recent estimates put
the amount held in offshore centres at between US$6 and US$7 trillion, which is
approximately equivalent to the annual world trade in goods and services or
about one third of total global GDP.
Much of this, perhaps between US$3 and US$4 trillion, consists of
savings held abroad by wealthy individuals.” (Source : Tax
Havens : Releasing Hidden Billions for Poverty Eradication, Oxfam, Policy
Paper,
Reference is made to the situation in 2000. The amount referred to is
world-wide. It includes financial leakage in all its forms from both rich and
poor countries. It includes, for example, illegal profits from drug-dealing and
other organised criminal activities.
“It is impossible
to calculate the financial losses to developing countries associated with
offshore activity. Secrecy, electronic commerce and the growing mobility of
capital have left all governments facing problems in revenue collection. The
borderline between tax evasion and tax avoidance is becoming increasingly
blurred. But at a conservative estimate, tax havens have contributed to revenue
losses for developing countries of at least US$50 billion a year. To put this
figure in context, it is roughly equivalent to annual aid flows to developing
countries. We stress that the estimate is a conservative one. It is derived
from the effects of tax competition and the non-payment of tax on flight
capital. It does not take into account
outright tax evasion, corporate practices such as transfer pricing, or the use
of havens to under-report profit.”
(Source : Tax
Havens : Releasing Hidden Billions for Poverty Eradication, Oxfam, Policy Paper,
The following report is from 17 April 2009.
“A consensus is
also emerging that the vast capital outflows from developing countries need to
be tackled through measures on tax havens and trans-national company reporting
practices. The latest report by Global
Financial Integrity estimates that "illicit financial flows out of
developing countries are $850 billion to $1 trillion a year." The volumes
are staggering and they dwarf the $100 billion of aid flowing every year from
Northern to Southern countries. (Source: Molina Nura, “Not much on offer for
poor countries to counter the crisis”, Bretton Woods Project
Update 65 – article 564208).
Warning! The total amount refers to «illicit financial
flows » from developing countries. It includes both illicit profits from corruption
and those from tax evasion, drugs trafficking and other organised criminal
activities.
Read at least section 2 of resource : Tax
Havens : Releasing Hidden Billions for Poverty Eradication, , Oxfam, Policy
Paper,
1. Opinion.
What do you think about this
problem ?
How far do you think the problem applies
to your country and to your project area ?
Purchases of luxury goods situated abroad.
The consequences of illegal funds and cash in relation
to corruption have been discussed The
consequences also cover their «legalisation »
(white-washing) through the purchase of goods abroad.
Many residents in developing countries, such as
business people and some politicians possess real and personal property abroad,
for an example a villa on the French Riviera, or a yacht complete with crew in
the
2. Research.
Do you know
of some examples ?
Purchase of luxury goods abroad may be a perfectly
legal investment, outside of any discussion of corruption.
On the other hand, even legal investments abroad can have
a negative effect on local development in poor countries. The investments might
otherwise have been invested and recycled locally.
3. Opinion.
Who benefit from the construction or
manufacture of goods purchased abroad ? How long does such an investment
last ?
What would it be possible to do with the
same amount invested locally ?
How could an end be made to this form of
“legal” financial leakage?
Importation of luxury items into developing countries.
A third level of financial leakage is caused by the
importation of luxury items into developing countries. Funds used for this
purpose may be either legal or illegal.
4. Opinion.
Who benefit
from the construction or manufacture of goods imported from abroad?
Read the notes you made in part 03. In depth : debts and subsidies.
5. Opinion.
Where luxury goods are imported from
abroad, how much of the price may be attributed to interest?
Payment for these goods may be made directly from a
foreign bank account. In that case, the funds used may be illicit. The payment
can also be made through a legal bank account in a developing country. In that
case the funds are transferred abroad.
6. Opinion.
What
likelihood is there that the amounts in question ever return to the developing
country?
How do these
“lost” amounts contribute to the local quality of life of people in the developing country ?
Banks and their investments.
Some members of local populations in developing
countries have bank accounts. In that case they put their (meagre) savings into
their bank accounts.
7. Opinion.
Where do the
banks invest this money ? What do
they invest it on ?
8. Research.
Suppose you wanted to set up a local
development bank in your project area ? Which form would it take?
◄ First block :
Poverty and quality of life.
◄ Index : Diploma in Integrated Development (Dip.Int.Dev)