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They have their debts forgiven on the basis of adopting certain policies (free market reform) that allows corporations from wealthy countries to set up shop and
by karpierz 4y ago
They have their debts forgiven on the basis of adopting certain policies (free market reform) that allows corporations from wealthy countries to set up shop and extract raw materials from the counter while avoiding giving back to the country via taxes. The profits get booked in Singapore or the Bahamas, and the stock price keeps going up.
- zozbot234 4y agoFree market reforms do not forbid taxes on natural resource extraction. The U.S. has plenty of such taxes, and they score very highly on measures of economic freedom.
- karpierz 4y agoOf course. But we aren't talking about the States, we're talking about countries that are forced into return as a condition of loan forgiveness. Some of those conditions involves avoiding any sort of export tariffs and using the declared value of goods to calculate profits (ex: if I spent 20$ extracting copper, and sold it for 20$ to an overseas company which totally isn't related to me, then the taxable profit in your country is 0$).