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Cautious Lesson from George Soros to (Tanzania)

Discussion in 'International Forum' started by Sophist, Jun 3, 2009.

  1. Sophist

    Sophist JF-Expert Member

    Jun 3, 2009
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    ......Finally, I would like to say something about the financial crisis and its implications for EITI and related transparency initiatives. The financial crisis and global recession have changed the landscape for extraction.

    §[FONT=&quot] [/FONT]Investors have become severely risk averse. Instead of investors competing to pour money into resource rich countries, countries and companies will have to compete to attract needed capital.

    It would be a mistake for countries like Liberia or Zambia to try to compete by giving away their recent hard-won gains in establishing stronger tax structures for extraction and re-negotiating unfavorable deals. The commodity downturn is likely to be temporary, but the deals bind you for decades. Don’t give away the store for short-term gains. Better to leave a valuable asset in the ground than accept terms that will yield your country little revenue or other benefits over the long term.

    Do compete on transparency, accountability and good resource governance.

    §[FONT=&quot] [/FONT]Information will be at a premium in this new market climate. Investors will want to see your books and they will want to know that the numbers can be trusted. They will want to see political stability.

    §[FONT=&quot] [/FONT]Financial regulators also will demand more disclosure from governments and companies that want to raise funds in their markets.

    I believe that in this difficult financial climate, resource rich countries that implement EITI will have a competitive edge. EITI not only makes vital information public and verifiable. It also promotes a level of trust among the country’s stakeholders that encourages investment.

    I am aware of two other exciting initiatives to increase transparency:
    ·[FONT=&quot] [/FONT]The US Congress is considering requiring companies that raise capital in our markets to publish what they pay to governments in all countries of operation.
    ·[FONT=&quot] [/FONT]Second, the International Accounting Standards Board may include country- by- country payments data in its new reporting standard for extractive industries.

    So, don’t compromise your principles of transparency, accountability and good governance, but rather, become more competitive by embracing those principles and embedding them more deeply.

    Thank you.
  2. B

    Bulesi JF-Expert Member

    Jun 3, 2009
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    I hope Jakaya and his team will read this and benefit from Soro's free advice!! Don't go for short term gains that will hurt in the long term and also our minerals can wait until an opportune time before you sign away those contracts to Sin Clair!! Our minerals if left in the ground will not rot!!
  3. Bluray

    Bluray JF-Expert Member

    Jun 3, 2009
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    This piece is part of the reason you have to admire this walking contradiction called George Soros.
  4. S

    Semjato JF-Expert Member

    Jun 4, 2009
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    being among the currently upper names when it comes to hedge funds na ushauri anaoutoa,Soros is a serious contradiction mkuu..
  5. T

    The Truth JF-Expert Member

    Jun 4, 2009
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    Africa needs foreign aid more than the world need Africa's minerals. All the foreign investors have to do is lobby their politicians to threaten aid to Africa and African politicians will sign those contracts. "Keep your minerals and starve" will be the motto. That's the reality.
  6. N

    Nyauba JF-Expert Member

    Jun 4, 2009
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    The ideas from Soros is clear but i wonder nobody follows it whether rich or poor countries!!!