New approach to debt called for

Doug Henwood dhenwood at panix.com
Tue Aug 31 18:47:05 PDT 1999


Chris Burford wrote:


>Sounds like the IMF needs to set up a fund to divert capital centrifugally
>out to Africa at the same rate that it is flowing in centripetally.
>
>Sounds like the need for a Tobin tax again!

Chris, old comrade, did you recharge your batteries on some sort of vacation?

Could you explain how a Tobin tax, a levy on transactions, would fundamentally change the direction of net capital flows? And since most of Africa's creditors are official, not private, would a TT even touch them?

Unless there's some vigorous speculative market in kwacha I don't know about.

Doug



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