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Russia in Africa: What Is Behind Moscow’s Push to Influence Africa on the UN Security Council?

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Research suggests that the links are overstated, especially compared to Africa’s voting patterns with other council members.

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Russia in Africa: What Is Behind Moscow’s Push to Influence Africa on the UN Security Council?
Photo: Sam Oxyak on Unsplash

Over the past two decades, Russia has aimed to re-establish itself as a world power. A key way to achieve this has been through its permanent membership on the United Nations Security Council (UNSC). In recent years, Russia’s posturing on several international conflicts has increasingly divided the UNSC, causing a degree of paralysis that hasn’t occurred since the Cold War.

At the same time, questions have arisen about how A3 members – the annually elected grouping of African states – coordinate positions among themselves, and with respect to the interests of the five permanent UNSC members (the P5). In particular, are certain African members becoming more aligned to Russia’s positions on the council?

These questions have been promoted, for example, by South Africa’s vote against the United States (US)-sponsored draft resolution on Venezuela that Russia and China vetoed in February 2019.

To understand these dynamics, a recent study by SAIIA and the Institute for Security Studies (ISS) examined voting patterns between the A3 and Russia. An assessment of all votes cast by UNSC members between 2014 and 2020 found that most resolutions were still approved unanimously, with close to 95% of all votes cast in favour of any tabled resolution.

So the institutional ‘paralysis’ that many council observers refer to, while still considerable, applies to a few debates in which council members disagree. These divisions were seen most sharply in discussions relating to Syria, Venezuela, Ukraine and the Women, Peace and Security agenda.

The SAIIA–ISS research found that Russia consistently stood out above other council members in its willingness to veto or abstain from tabled resolutions. It abstained from 45 votes and cast 20 vetoes between 2014 and 2020.

Russia especially opposed positions led by the other permanent member states – ‘loudly’ disagreeing with stances put forward by France, the United Kingdom and the US. This dissent is usually based on its criticism of the West’s apparent attempts to ‘monopolise the truth’ and over what constitutes human rights. Russia also enjoys a convenient (but passive) alliance with China, which shares similar grievances over Western-dominated approaches to global conflicts.

In contrast to Russia, the A3 seldom voted against any draft resolutions tabled between 2014 and 2020, preferring instead to abstain on contentious issues. An example is the controversial 2018 US-sponsored draft resolution on Palestine.

Russia stands out in terms of its willingness to veto or abstain from tabled UNSC resolutions

As divisions have deepened among the P5, African countries on the UNSC have increasingly relied on collective positions among themselves and those aligned to the African Union (AU). This has given Africa greater agency in global multilateral processes that directly affect conflicts and crises on the continent.

A similar approach has been taken in recent years by all 10 non-permanent members (E10). These efforts paid off considerably on specific council discussions, such as allowing greater humanitarian access to Syria. But the coordination and coherence of E10 positions have again waned somewhat since 2018.

More consistent UNSC positions by the A3 have given African states greater leverage to engage with other council members. The risks of not doing so were revealed in December 2018 when A3 members disagreed on a common approach to the thorny issue of financing for AU-led peace support operations. The fallout can still be seen today. Recent attempts to revitalise negotiations have only managed to expose lingering divides between New York and Addis Ababa.

The SAIIA–ISS study found little evidence of a growing alignment or greater coordination between the A3 and Russia, based on their voting patterns from 2014-2020. The coincidence of ‘in favour’ votes between the A3 and Russia declined year-on-year, falling to 72% in 2020 compared to 91% in 2014. The overlap in A3 votes ‘in favour’ with the US, UK and France by contrast, ranged from 91% to 93% in 2020.

There are also extremely few cases in which the A3 collectively abstained or voted against draft resolutions in line with Russia’s position. Between 2014 and 2020, on only one occasion did an A3 member vote against a draft resolution that Russia vetoed (South Africa’s 2019 Venezuela vote).

These findings show that the relationship between Russia and the A3 on the UNSC is relatively uncoordinated, especially compared to A3 votes in relation to other permanent members. While the SAIIA–ISS study didn’t delve into the content and substance of resolution-specific negotiations, the alignment between Russia and the A3 during the 2014-20 period was very weak.

Arguments that certain A3 members are becoming more aligned to Russian interests on the UNSC don’t hold for the African group as a collective. Russia’s ‘loud dissenter’ role on the council may well continue, but to succeed, it needs more significant support from other members, including the A3. Based on the SAIIA–ISS research results, that seems unlikely.

This article was originally published by the The South African Institute of International Affairs (SAIIA), an independent public policy think tank advancing a well governed, peaceful, economically sustainable and globally engaged Africa.

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Gustavo de Carvalho is a Programme Manager and Senior Researcher at the ISS’ Peace Operations and Peacebuilding Programme in Pretoria. Priyal Singh is a Researcher at the Institute for Security Studies’ (ISS) Peace Operations and Peacebuilding Programme in Pretoria, South Africa.

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Freedom After Speech: Angolan Police Detain, and Beat Journalists Covering Protests

Angolan police should stop arresting and assaulting journalists and allow them to do their jobs freely, the Committee to Protect Journalists said today.

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Freedom After Speech: Angolan Police Detain, and Beat Journalists Covering Protests

At least six journalists and one media worker were arrested – with four held for more than two days – and another was harassed while covering anti-government protests by civil society groups and opposition parties in the capital, Luanda, on October 24, according to news reports and Teixeira Candido, secretary general of the Union of Angolan Journalists (SJA), who spoke with CPJ via messaging app. All those detained were released without charge, Candido said.

“Angolan authorities must stop harassing and detaining journalists who are simply doing their work and must allow them to report freely,” said Angela Quintal, CPJ’s Africa program coordinator. “That three of the detained journalists and a driver were finally released without charge after more than two days in custody shows the police’s vindictiveness, as they were well aware that the journalists were simply covering the news of the day.”

Police forced two journalists from privately-owned Radio Essencial, Suely de Melo and Carlos Tome, photographer Santos Samuesseca of the radio station’s sister publication Valor Económico, and their driver, Leonardo Faustino, out of their car around 10:30 a.m. while the journalists were covering the protests, according to a statement by Evaristo Mulaza, the director of GEM Angola Global Media, the company which owns both outlets. In the statement, sent to CPJ via messaging app, Mulaza said that the journalists had identified themselves to police as journalists on assignment. He said that police beat the journalists and seized their cell phones and a camera. Geralda Embalo, the executive director of Valor Económico and sister publication Nova Gazeta, later provided further details of the assault via messaging app, saying the four were beaten with batons and kicked by police: “Nothing broken, [they were] just bruised, terrified humiliated…” Embalo said that police told De Melo: “Instead of covering demonstrations you should be looking for a husband.”

The four were taken to various police stations, until they were finally detained in Luanda’s Provincial Command, Mulaza said. The journalists and driver were interrogated by a public prosecutor and released without charge at 3 p.m. yesterday, he said, adding that no official had explained why the four had spent more than 50 hours in police custody. As of today Embalo said that the journalists’ equipment had not been returned.

CPJ spoke with Angolan police spokesman Nestor Gobel via messaging app on October 25, the day before the journalists and driver were released, and he told CPJ that police were working on getting the four out of custody. “Don’t worry things will be ok,” he said. Gobel did not respond to follow-up messages and a phone call regarding that and other incidents sent yesterday.

In a separate incident, two journalists who work for the private broadcaster TV Zimbo, Domingos Caiombo and Octávio Zoba, were detained and forced to delete their images of the protest on October 24, before they were released on the same day without charge, said Candido of SJA.

In another incident, two journalists, freelancers Osvaldo Silva and Nsimba Jorge who contribute to the French news agency AFP, were assaulted and harassed by police during the protests, according to both journalists. Silva told CPJ via messaging app that when he arrived at the protest, he was questioned by the police. He showed them his press credentials, but they insisted he needed police authorization to cover the protests. He said police hit him with their hands and truncheons, threw him on the ground and kicked him, and then bundled him into a police vehicle and confiscated his phone. He said he was taken to a police station and was released the same day but was unable to recover his phone until later. Silva said he returned to the protest, where police hit him on the buttocks, demanded his press credentials, and prevented him from taking photographs. Silva said he then left the protests. Nsimba told CPJ via messaging app that police wanted to confiscate his camera and when he resisted, they forced him to delete everything on his memory card; he said he was not detained.

In a statement provided to CPJ via messaging app, AFP’s Africa director, Boris Bachorz, said the agency strongly condemned the assault and urged Angolan authorities to ensure journalists can work without hindrance or threat. Candido urged the police to justify why they were repeatedly trampling on the rights of journalists and violating the right to media freedom recognized in Angola’s constitution.

Presidential spokesman Luis Fernando and Governor of Luanda Joana Lina did not reply to text messages seeking comment from CPJ yesterday or on October 25.

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The Climate Crisis Is Also a Debt Crisis

A climate debt is owed. It is owed by the richest countries, whose carbon emissions — through centuries of industrialisation made possible by colonial extraction — have been the principal cause of the climate crisis.

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The Climate Crisis Is Also a Debt Crisis

Countries in the Global South, which are the least responsible for carbon emissions and the climate crisis, are feeling its impacts first and most severely. Climate change is leading to more frequent and intense extreme weather events around the world. Caribbean islands and other Small Island Developing States in particular are responsible for just 0.2% of emissions, yet are being repeatedly devastated by the intensified hurricanes of a hotter world.

This crisis poses an existential threat to human society, and indeed to all life on earth. The IPCC has reported that temperatures are rising faster than at any time for at least 2,000 years, with CO2 levels in the atmosphere the highest for 2 million years. Unless deep and rapid cuts in emissions occur, the Paris Agreement goals will be out of reach, and the planet devastated.

Yet, the climate debt is not being paid. Rich countries are failing to meet their already inadequate commitments to provide climate finance to mitigate and adapt to the effects of climate change, whilst spending every UN climate conference avoiding the topic of payment for the damage caused by the climate emergency.

There is another illegitimate form of climate debt that is being paid every day by poor countries to the rich countries. It takes the form of interest payments on their massive debts: debt built up in rebuilding from hurricanes, paying off loans to development banks for climate investment, and adapting to their farmland becoming desert.

Dominica and the spiral of climate debt

Dominica, a small island of 70,000 people in the eastern Caribbean, is on the front line of the climate emergency. In 2016, tropical storm Erika devastated the island, causing damage equivalent to 90% of its GDP. Only a year later, the event was dwarfed by Category 5 hurricane Maria, which destroyed over 90% of the island’s structures, causing an estimated US$1.3 billion of damage, more than double the value of everything the country produces in a year, a barely credible 226% of GDP.

Days after hurricane Maria, Dominica had to find several million dollars for a debt repayment that fell due. Its debt had already risen to the very high level of 72% of GDP after Erika, and rose further to 78% of GDP in the aftermath of Maria.

Dominica’s geography and exposure to intensifying tropical storms puts it at the forefront of the climate crisis. In fact, around 80% of the most damaging disasters since 2000 have been tropical storms, and over 90% of them have been in Small Island Developing States, with over 60% in the Caribbean. Extreme climate events tend to be particularly disastrous for small island states as their small landmass means that the entire country is often affected.

Dominica’s colonial history as a slave island is also a factor: the exclusive focus on banana production served the interests of the British Empire. Since its independence in 1967, Dominica has needed to diversify its economy to avoid reliance on a single crop, with the attendant exposure to price fluctuations and climate-related crop failure.

The pandemic, which has almost eliminated tourism and affected remittances, has further exacerbated Dominica’s problems.

However, Dominica is not doomed by history and geography. It has passed impressive climate resilience legislation that aims to make the island hurricane-proof, through building codes, diversified agriculture, geothermal energy and sustainable high-end tourism. It has successfully reconstructed after Erika and Maria.

But this requires funding. In the aftermath of Maria, Prime Minister Skerrit gave an emotional address to the UN, asking for reconstruction grants in order to not “let 72,000 Dominicans shoulder the world’s conscience on climate change on their own.” His appeal was not answered. Dominica is now assessed by the International Monetary Fund (IMF) as being at high risk of debt distress.

The relationship between the climate and debt crises

Climate-vulnerable countries like Dominica are trapped in a vicious circle of climate-related disasters and debt. Every time they are hit by a hurricane, they go further into debt to cover the costs of reconstruction. As an increasing proportion of their national income goes to debt payments, they are less able to invest in preparing for future disasters, or in rebuilding when they arrive.

Their creditors, who profit from the interest on their mounting debt, are governments and companies in the Global North that caused the climate crisis and its destructive effects in the first place.

Wealthy, high-polluting countries have recognised in principle their greater responsibility for responding to the climate crisis. The 1992 United Nations Framework Convention on Climate Change, signed by all UN member states, asserts that those states which have historically contributed the most to climate change are most responsible for dealing with its impacts. Wealthy polluting countries committed in 2009 to providing $100 billion per year in climate finance. Even if one ignores the widespread over-reporting by countries, this target is not being met.

Worse, around two thirds of climate finance is offered in the form of loans, often at market rates of relatively high rates of interest. 90% of the climate finance received by Latin America and the Caribbean in 2018 was in the form of loans. Instead of addressing the historic climate debt owed by Global North countries, most climate finance is adding to the unsustainable debt of Global South countries, whilst generating profits for lenders in the North.

Many climate-vulnerable countries also cannot access zero-interest loans from international financial institutions like the IMF. The most indebted countries are largely classified as middle income, meaning that they must pay interest. IMF loans are conditional on recipient countries implementing austerity policies, which has recently provoked large-scale protests in Sudan, Tunisia, Kenya and elsewhere.

The lack of support from the international community leaves climate-vulnerable countries with no option but to look to the international capital markets to raise funds. The proportion of Global South debt owed to private creditors has increased dramatically over the last ten years to around 30% of its total debt. In an era of zero interest rates for rich countries, Global South countries continue to pay around 10% annual interest on bonds and loans.

These high interest rates reflect that the loans are inherently risky.  Lending for development is premised on the assumption that the investment will bring returns for the borrowing government, enabling them to repay the loans later. But investment for climate adaptation is fundamentally about reducing future damage, rather than generating income. Hurricane-resistant buildings will not normally bring profits.

In a final irony, lenders are beginning to factor climate vulnerability into interest rates, on the principle that Caribbean islands, for example, are at higher risk of default because they will continue to be hit by intensifying hurricanes. In other words, Global North lenders punish climate-vulnerable countries for being the casualties of the climate crisis. The result is that higher repayments mean debt becomes unsustainable at an increasing rate, increasing the risk of default and further driving up interest rates.

This vortex of spiralling debt is driving some Global South countries into measures that exacerbate the climate crisis. Exploitation of natural resources can be one of the only ways of earning foreign currency revenue through exports. Yet forest exploitation can lead to deforestation, soil erosion and ecosystem degradation, exacerbating the effects of future climate-related droughts and storms, while fossil fuel exploitation intensifies the underlying climate emergency. Creditors are even insisting that countries undertake activities that harm the environment, in order to keep paying off their debts. Suriname’s private creditors have insisted that it factor in future profits from potential drilling for oil into any restructuring of its debt, while Pakistan’s efforts to reduce its reliance on coal-fired power stations have been obstructed by the outstanding debts owed to China for their construction.

The international response

When the pandemic hit in 2020, world leaders were not slow to see the risk of the debt crisis tipping over into a wave of sovereign defaults. In April 2021, the G20 announced the suspension of debt payments for up to 73 of the poorest countries, and has subsequently extended the Debt Service Suspension Initiative until December 2021. This was followed by the Common Framework in November 2020, which aimed to provide a format for all creditors, including private lenders, to come together to agree to restructuring debts for countries with unsustainable debt.

The G20 rose to the occasion in terms of speed and rhetoric, but has fallen far short on substance. Debt suspension served only to push a small proportion of Global South debts into the future. The majority of the most indebted and most climate-vulnerable countries, which are classified as middle income, were ineligible and thus excluded.

The Common Framework, meanwhile, is yet to achieve anything. Only three of the 73 eligible countries have applied, and none of the three have seen any debts restructured. Private creditors have taken no substantial steps to cooperate, flatly refusing Zambia’s request for debt restructuring, and continuing to hold out on Chad, while China is proving reluctant to join the negotiations with Ethiopia. Unless all creditors participate, the process will fail, since the Framework is set up to prevent hold-outs from continuing to be paid, and profiting from other creditors’ concessions.

Global South countries realise that, without a process to compel private creditors to participate, and with no concrete prospects for debt cancellation, applying to such a program is not worth the potential damage to their credit ratings. Countries, especially those that have no better options than borrowing on the private finance market, worry that if they try to restructure debts to private creditors, they will pay even higher interest on future loans.

It is symptomatic of the power imbalances in global decision-making that the response to the debt crisis has come from the G20 — a self-selected group of mainly rich creditor countries, of which many are former colonial powers bearing heavy responsibility for the climate crisis — rather than the UN, where the Global South has a presence. Indeed, in 2015 the UN voted to move towards creating a sovereign debt restructuring mechanism, with 136 countries in favour, 41 abstaining and just 6 against. However, the 6 included the US and UK, jurisdictions under which most international debt contracts are governed, essentially blocking progress. Small island developing states have been vocal in demanding a more just approach to climate finance and debt, but they are simply not at the table when decisions are taken on the debt crisis. It is no surprise then that those decisions reflect the interests of creditors rather than climate justice.

Solutions

The climate crisis is also a debt crisis, and the two cannot be addressed in isolation from each other. Any potential solution has to recognise the mutually reinforcing effects of the interlocking crises, and address both elements with seriousness. The urgency of the climate crisis requires debt cancellation, not mere suspension of payments. In order to prevent future debt crises, grant-based climate finance must be available to enable countries to adapt to and mitigate the climate crisis without saddling them with more debt. Rich countries must accept their responsibility to pay for the loss and damage already caused.

As the urgency of the crisis becomes clear, false and partial solutions have begun to proliferate, which misleadingly present the crisis as solvable without deviation from business as usual. ‘Green’ and ‘nature performance’ bonds — types of loans from private companies to Global South governments which connect repayments to progress on often hazy environmental protection indicators — increase the debt burden, and risk being simply a new way for investors to profit off Global South debt while gesturing towards the climate emergency. Debt swaps, where some debt is written off in return for debtor countries investing in conservation goals or climate adaptation and mitigation, can be of some benefit if they involve significant debt cancellation. However, in practice, the amounts of debt written off have been inadequate to the scale of the crisis because debt swaps are complex and costly to implement, and give power to creditors to determine environmental priorities.

The pandemic has revealed the vastly different circumstances of rich countries, able to print money at almost no cost to protect lives and jobs and stimulate the recovery, and poorer countries that must borrow at high interest, adding to already unsustainable debt piles. The climate crisis requires much greater and longer-term investment, which will be out of reach for Global South countries that must devote a significant proportion of their income to repaying debt. Without debt cancellation, vulnerable countries will never be able to free up sufficient resources to respond to the challenges of the climate emergency.

Large-scale debt cancellation could take place through a strengthened Common Framework or an alternative mechanism, but it must be open to all countries that need it, and require all creditors, including private ones, to participate.

As climate-related extreme events become more frequent, the world needs a mechanism that allows countries to suspend debt repayments in the immediate aftermath of a calamity, when resources are critically needed for the emergency response. An automatic interest-free moratorium on debt repayments should be followed by assessment of the impact of the disaster, and debt restructuring if needed. This would build on important innovations already taking place at the level of debt contracts, where ‘state-contingent clauses’ in some contracts allow for debt repayments to be paused and adjusted following a disaster.

Ultimately, a multilateral debt workout mechanism is needed that would provide a structure to enable effectively-bankrupt states to bring their debts down to sustainable levels. It needs to be enforceable by law, in the same way as individual bankruptcy proceedings, to prevent vulture funds from suing.

These reforms to the debt system are necessary but not sufficient. A just climate transition requires costs to be met in a sustainable way through climate finance grants, rather than by affected countries taking on debt. A new fund should be created under the United Nations Framework Convention on Climate Change, funded by rich and polluting countries, to provide support to countries experiencing climate-related disasters.

Climate justice is essential to the future of the planet, and it is impossible without debt justice. The Global South is not responsible for creating the climate crisis, and the legacy of colonialism and unsustainable debt have left it least able to afford the investment needed to mitigate and adapt to the coming emergency. Global South leaders from around the world are demanding debt cancellation for climate justice. COP26 in November will be a crucial moment of solidarity between protesters in the street, Global South negotiators in the conference hall, and communities around the world who are rising up to demand collective liberation from debt, exploitation and climate catastrophe.

This article was first published by Progressive International.

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Capital Flight and Tax Havens in Africa

One of the many strengths of the book, is the representation of experts from the Global South. This can be seen in the make-up of the team of this collection: Thirty in total, they include experts, academics, activist, political and economic advisors, and importantly come from a variety of backgrounds and geographies.

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Capital Flight and Tax Havens in Africa

Odd-Helge Fjeldstad, Sigrid Klæboe Jacobsen, Peter Henriksen Ringstad, Honest Prosper Ngowi Lifting the veil of secrecy: Perspectives on international taxation and capital flight from Africa (Bergen: Chr. Michelsen Institute, 2017). The book is available as open source and can be accessed here.

This is a timely collection. Published when newspapers are saturated with tax-related scandals and fraud allegations, the book analyses some of the main issues surrounding illicit financial flows, in particularly concerning tax heavens. The focus of the book is Africa – the continent that suffers most from capital outflow, not only but especially in terms of economic development. Targeted at, among others, policy makers, tax practitioners, civil society organisations, students and researchers, the aim of the book is to contribute to widening the debate around tax havens and offer policy-relevant data and findings.

The book starts by considering the scale of the problem. Loss to African countries in corporate tax evasion is higher than anywhere else in the world – with a tax system which enables tax avoidance. Particularly egregious is the behaviour of multinational companies in the extractive industry who pay absurdly small amount of tax by registering profits to tax havens. Among the continent’s rich wealth is frequently hidden in havens outside national tax authorities and beyond judicial reach.

As the book tells us, ‘the global network of offshore financial centres … popularly known as ‘tax havens’ or ‘secrecy jurisdictions’ … make it possible for rich elites and large multinational companies to drain large amounts of wealth out of Africa.’ Many of these tax havens are located in predictable places, small tropical islands such as the Cayman and the British Virgin Islands, but also in rich OECD countries such as Ireland, the Netherlands, Luxembourg, Singapore, and the United Kingdom.

Despite the notorious difficulties in assessing the scale of the problem, the authors present some shocking figures. Globally, there is approximately USD 8 trillion of personal financial wealth in offshore accounts. This figure rises to USD 32 trillion when tangible asset like property, artwork and jewellery are included. Yet as a proportion of total wealth, Africa is the most afflicted continent in the world. ‘Africans hold USD 500 billion in financial wealth offshore, amounting to 30% of all financial wealth held by Africans.’ In terms of lost taxation from this ‘flight’, it is suggested that African countries are deprived of an estimated annual figure of USD 15 billion. However, as the book states, ‘The inclusion of non-financial wealth, or higher estimates from available literature, could push this figure as high as USD 60 billion annually.’ In short, the situation is catastrophic.

One of the many strengths of the book, is the representation of experts from the Global South. This can be seen in the make-up of the team of this collection: Thirty in total, they include experts, academics, activist, political and economic advisors, and importantly come from a variety of backgrounds and geographies. As a few examples: Professor Annet Oguttu – first black woman to get a doctorate in tax law at the University of South Africa, where she later became the first female Professor; Dr Honest Prosper Ngowi – an Associate Professor of Economics at Mzumbe University in Tanzania; Professor Leonce Ndikumana – Professor of Economics University of Massachusetts at Amhest and Dr Caleb Fundanha – the Director of the Institute for Finance and Economics and Chief Executive Officer of Macroeconomic and Financial Management Institute of Eastern and Southern Africa.

The volume is organised into five sections: each one opens by introducing a topic and is then complimented by shorter articles with more in-depth discussion and case studies. Setting the scene in the introduction, the authors take up, what seems an unwieldy task: not only understand the impact that tax havens have in economic terms on the continent, but also explore ways in which the global networks of offshore financial centres affect domestic tax bases, political institutions, and citizen’s participation. To note briefly, there is no clear explanation as what kind, or in what, the ‘citizen’s participation’ is referred to.

After defining some important concepts and giving an overview of the historical evolvement of tax heavens, the book moves to talk about its estimated scale and impact on the African continent as well as about the intricate relationship between capital flight, global corporations, bank secrecy and the elites, i.e. the power-accumulation nexus.  Importantly, there is an acknowledgement of the difficulty in quantifying the exact amount of money being lost due to, amongst other things, the mismatch in trade statistics and often inaccurate methodologies used to estimate losses. This is an argument that is widely adopted by the international community as the search for more reliable methodologies continues.

The actors involved in the network of tax heavens, including the so-called ‘Big Four’ (EY, Deloitte, PwC and KPMG) are explored in detail. These actors – also referred to as ‘lobbyists’ – according to the study, play one of the central roles in pushing for tax incentives and benefits for multinational companies, to the extent that this influences legislation in certain countries as explored by John Christensen here. The exploration of the extractives sector on the African continent and its relationship with tax havens is probably one of the most insightful parts of this collection. Detail-rich, it illustrates how multiple actors (including domestic players), navigate their way in interests-driven financial schemes in order to – to put in simple terms – squeeze as much revenue and pay as little tax.

The final section of the book gives an overview of some of the actors involved in trying to tackle issues associated with tax havens as well as the measures and initiatives these actors are supporting. The overview is comprehensive, covering the historical development of these initiatives, mentioning the current changes and importantly underlining the importance of building capacity in the African countries in tax administration, including taxpayer services and increasingly important e-tax systems.

Structurally, the book has various shortcomings. Due to the fact that some of the shorter articles in the five sections were not written specifically for this collection (but rather adapted), at times there is a sense that the information is fragmented. The lack of cross-referencing within sections and shorter articles throughout the book also adds to this effect. Moreover, there are several times where the same concepts are being defined and explained repeatedly, while it helps in our understanding, this repetition breaks the flow of the book.

What the structural inaccuracies also do is that they take away from effectively conveying the response to research objectives that were laid out at the start of the book. The data and analysis to further understand how tax havens affect domestic taxation bases, political institutions and ‘citizen participation’ gets somewhat diluted in lengthy explanations. While it is understandable that when trying to unveil the complex financial and political structures at play, there is a sense that there is not enough emphasis on how the material connects to the research questions. What is also lacking is a conclusion. The book seems to end abruptly and leaves the reader ‘hanging’; I would have liked to see the analysis being comprehensively concluded.

What the book does do however, it is it opens up a much-needed debate around the importance of looking beyond financial impacts of tax havens to start a wider discussion on its effects on domestic law-creation, people’s perceptions and attitudes toward taxation, in order to understand the mechanism and policy that can be used to deter the abuse of the global financial system. The book offers a solid grounding that can inform future research, studies and debates. Available as open source, graphically appealing and detail-rich, the book is an accessible resource for those interested in peering behind the veil of secrecy.

Lifting the Veil of Secrecy is available as open source and can be accessed here.

This article was published in the Review of African political Economy (ROAPE).

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