Strategy and policy directions in the field of domestic financial resource mobilization for the economic development of African countries

Drobot E.V.1,2
1 Центр дополнительного профессионального образования
2 Первое экономическое издательство

Journal paper

Journal of International Economic Affairs (РИНЦ, ВАК)
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Volume 14, Number 2 (April-June 2024)

Citation:

Indexed in Russian Science Citation Index: https://elibrary.ru/item.asp?id=67903452

Abstract:
This article is a continuation of a series of publications devoted to the problems and prospects of domestic financial resource mobilization to ensure sustainable economic growth and development of African countries. The article develops the comprehensive strategy of domestic financial resource mobilization for the economic development of African countries. The main directions of the policy aimed at solving the problems hindering the attraction of sufficient domestic financial resources for the economic development of African countries are considered. These directions are as follows: combating capital flight and illicit financial flows; solving problems related to high dependence on foreign aid and high levels of public debt; combating the informal economy, especially informal employment; improving the efficiency of tax administration and developing tax potential; solving problems related to a narrow tax base; solving problems related to transfer pricing applied by multinational and transnational corporations; improving the efficiency of taxation of extractive industries and solving problems related to excessive dependence on resource rents; solving problems in the provision of tax benefits and preferences; stimulating savings; improving the investment climate; overcoming the negative consequences of the COVID-19 pandemic, primarily in terms of negative impact on the structure of state revenues; resolving the consequences of the negative impact of the Russian-Ukrainian conflict on the economies of African countries; and mitigating the negative impact of climate change on the development of the continent. The article is addressed to specialists in world economy and international relations, economists, and Africanists.

Keywords: Africa, financial resource mobilization, taxation, informal economy, sustainable development, capital flight, economic development

JEL-classification: F15, F54, F65, N27, N47

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