Do people remember IMF's prescription?

C

Contrarian

Lister
This is an oversimplification of a complex problem. Nordic countries have some of the highest tax rates yet they have accumulated massive amounts of capital. Taxes are used to pay for basic infrastructure such as roads, education,, healthcare. Without those, forget about developing.
 
K

Kamau wa Kíríro

Elder Lister
Contrarian said:
This is an oversimplification of a complex problem. Nordic countries have some of the highest tax rates yet they have accumulated massive amounts of capital. Taxes are used to pay for basic infrastructure such as roads, education,, healthcare. Without those, forget about developing.
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This seems like the chicken and egg problem.... lower taxes,less revenue higher taxes less investments. The difference between the Nordic countries and African countries is governance.... Their taxes are used to benefit everyone while ours are used to benefit a privileged few....
 
M

Montecarlo

Elder Lister
Contrarian said:
This is an oversimplification of a complex problem. Nordic countries have some of the highest tax rates yet they have accumulated massive amounts of capital. Taxes are used to pay for basic infrastructure such as roads, education,, healthcare. Without those, forget about developing.
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To state that taxes are used for only what you have listed shows that you are also oversimplifying usage of taxes, levies, duties and fees.
 
M

Montecarlo

Elder Lister
Kamau wa Kíríro said:
This seems like the chicken and egg problem.... lower taxes,less revenue higher taxes less investments. The difference between the Nordic countries and African countries is governance.... Their taxes are used to benefit everyone while ours are used to benefit a privileged few....
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100% true and the few board it in the Nordic countries such as Switzerland enabling such countries to earn interest by loaning monies stolen from African countries....
 
Kasaman

Kasaman

Elder Lister
Contrarian said:
This is an oversimplification of a complex problem. Nordic countries have some of the highest tax rates yet they have accumulated massive amounts of capital. Taxes are used to pay for basic infrastructure such as roads, education,, healthcare. Without those, forget about developing.
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You are giving jubilee ngavament credit, are in kenya !
 
C

Contrarian

Lister
Kamau wa Kíríro said:
This seems like the chicken and egg problem.... lower taxes,less revenue higher taxes less investments. The difference between the Nordic countries and African countries is governance.... Their taxes are used to benefit everyone while ours are used to benefit a privileged few....
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another oversimplification, we waste a good portion of our resources, so do they, maybe they waste a little less but nobody is 100% efficient, the only difference is time, they have had time to accumulate capital, we haven't ( kenya is probably only getting its 3rd generation middle class, while most of us are just out of poverty or one generation removed while most European countries had the same in the 19th century
 
DeepInYourMind

DeepInYourMind

Elder Lister
The first wave was getting out of colonial rule, the second wave was overturning brutal dictatorships. The third wave should be efficient and effective governments for the people in Africa. It is the right time, we have the technology and capability.

My proposal is a limited govt (less regulation and taxes) and an empowered free market that will spur economic growth in Africa.

A large organization (e.g. govt) is by definition slow, bureaucratic and inefficient
 
C

Contrarian

Lister
DeepInYourMind said:
The first wave was getting out of colonial rule, the second wave was overturning brutal dictatorships. The third wave should be efficient and effective governments for the people in Africa. It is the right time, we have the technology and capability.

My proposal is a limited govt (less regulation and taxes) and an empowered free market that will spur economic growth in Africa.

A large organization (e.g. govt) is by definition slow, bureaucratic and inefficient
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limited government means less equality in the country where most benefits accrue at the top with limited trickle down, dont you think that government has an activist role to play to ensure fair sharing of resources?
 
DeepInYourMind

DeepInYourMind

Elder Lister
Contrarian said:
limited government means less equality in the country where most benefits accrue at the top with limited trickle down
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Strike out the word limited, and your statement will accurately describe the situation many africans find themselves in.

Let's have an environment where a young person with limited resources but a great idea can easily set up an enterprise without getting killed off before starting by heavy regulation costs
 
K

Kamau wa Kíríro

Elder Lister
Contrarian said:
limited government means less equality in the country where most benefits accrue at the top with limited trickle down,
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Not necessarily....we don't need more government functionaries and apparatchik to effect equity, only proper (and dare I say pro-poor) policies. This is like arguing for BBI..... this trickle down negates economic equity

Contrarian said:
government has an activist role to play to ensure fair sharing of resources?
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Yea, from a social welfare point of view..
 
C

Contrarian

Lister
DeepInYourMind said:
Strike out the word limited, and your statement will accurately describe the situation many africans find themselves in.

Let's have an environment where a young person with limited resources but a great idea can easily set up an enterprise without getting killed off before starting by heavy regulation costs
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we actually have limited government, our regulatory framework is bare minimum and rarely enforced, as a matter of fact, 90% of any business you need to start in Kenya , the only thing you need is a KRA PIN and single business permit.
 
C

Contrarian

Lister
Kamau wa Kíríro said:
Not necessarily....we don't need more government functionaries and apparatchik to effect equity, only proper (and dare I say pro-poor) policies. This is like arguing for BBI..... this trickle down negates economic equity


Yea, from a social welfare point of view..
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I guess we might be referring to different things, when i say limited govt, i'm not just referring to the size of bureaucracy, rather more to the regulatory reach of such government. However, social welfare ultimately lead to a larger/ not limited government.
My larger argument is we are yet to decide as a people what our theory of government is.
 
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