The Dark Side of Transfer Pricing: Its Role in Tax Avoidance and Wealth Retentiveness

In conventional accounting literature, ?transfer pricing? is portrayed as a technique for optimal allocation of costs and revenues amongst divisions, subsidiaries and joint ventures within a group of related entities. Such representations of transfer pricing simultaneously acknowledge and occlude how it is deeply implicated in processes of wealth retentiveness that enable companies to avoid taxes and facilitate the flight of capital. A purely technical conception of transfer pricing calculations abstracts them from the politico-economic contexts of their development and use. The context is the modern corporation in an era of globalized trade and its relationship to state tax authorities, shareholders and other possible stakeholders. Transfer pricing practices are responsive to opportunities for determining values in ways that are consequential for enhancing private gains, and thereby contributing to relative social impoverishment, by avoiding the payment of public taxes. Evidence is provided by examining some of the transfer prices practices used by corporations to avoid taxes in developing and developed economies

Foreign Aid Transaction Costs: What are they and when are they minimised?

'Transaction costs' are commonly referred to in the recent literature on aid effectiveness. Aid transaction costs, however, have been neither consistently defined nor measured. This article defines aid transaction costs as all the economic costs associated with aid management that add no value to aid delivery. This enables the 'net' transaction costs that should be minimised to be identified. An analytical framework is then developed for assessing these costs. This allows the effectiveness of different aid modalities to be compared, according to the characteristics of the aid transaction. The article shows that the choice of aid modality should depend on these characteristics and, therefore, that the minimisation of transaction costs should not be an end in itself.Peer reviewe

Reluctant Donors? The Europeanization of International Development Policies in the New Members

The EU played an instrumental role re-starting the international development policies in Central and Eastern European member states, but questions remain about how far this policy area has been Europeanized since accession. Focusing on the Czech Republic, Hungary, Poland and Slovakia, the paper investigates why the new donors have been reluctant to adopt the EU’s development acquis more fully. The paper traces the process of the EU’s development policy rulemaking and subsequent national rule implementation to understand the socialization opportunities these processes offer. The conclusions reveal thrre reasons why socialization has been weak: (1) perceptions among the new member states on the development acquis’ procedural legitimacy; (2) low domestic resonance with the development acquis; and (3) inconsistencies in the activities of norm entrepreneurs. The paper contributes to our understanding of development policy in the EU, in particular how decision making takes place within the Council and its Working Groups post enlargement

Seed system security assessment: Southern Sudan

A Seed System Security Assessment (SSSA) was carried out across Southern Sudan in November–December 2010. It reviewed the functioning of the seed systems farmers use, both formal and informal, and assessed whether farmers could access seed of adequate quantity and quality in the short and medium term. The work covered 8 states and 16 counties, chosen to anticipate the range of possible seed security constraints. Field research encompassed 885 farmer interviews, seed/grain market analysis, interviews with 70 traders, over 25 focus group discussions (including discussions with women’s groups), and key-informant sessions. Background papers were also commissioned on: a) the formal breeding sector’s structures and processes; b) the formal seed sector’s structures and processes; and c) current decentralized seed multiplication and distribution initiatives. This is among the more comprehensive agricultural and seed security assessments carried out nationwide, across Southern Sudan, in many decades

How do people conceptualise the reuse of medicines? An interview study

Objectives: To capture people’s beliefs about medicines reuse and to map the determinants of intentions to reuse medicines in the future. Methods: Participants were recruited through an advert placed in the university’s community newsletter reaching 15,000 households. Adults wishing to participate were interviewed using opportunistic sampling, with recruitment continuing until data saturation. Participants were interviewed face-to-face by two researchers using a semi-structured interview schedule based on the Theory of Planned Behaviour (TPB). Interview transcripts were analysed by thematic analysis with the themes classified according to the TPB. The University’s research ethics committee approval was obtained. Key findings: Nineteen participants were interviewed. The potential economic and environmental benefits of medicines reuse were juxtaposed with stability and safety worries. Participants trusted pharmacists to quality-assure returned medicines, but wondered if they had the time and storage space to dedicate to medicines reuse. Environmentalists were seen as the main proponents of medicines reuse with drug manufacturers, some taxpayers, and parents seen as the main opponents. The physical characteristics of reused medicines, and quality assurance and logistics of reuse processes were seen to enable / obstruct engagement in medicines reuse. A working definition of medicines reuse as a behaviour was developed. Conclusions: People could potentially agree to reuse medicines if their concerns are addressed and the process is well defined and managed. This is a qualitative study with a small number of participants meaning the results may not be generalizable. The themes generated will enable a structured questionnaire to be developed for quantifying broader views

Seed system security assessment : Southern Sudan : November-December 2010

Juba, South Suda

Everyday Diplomacy: UKUSA Intelligence Cooperation and Geopolitical Assemblages

This article offers an alternative to civilizational thinking in geopolitics and international relations predicated on assemblage theory. Building on literature in political geography and elsewhere about everyday practices that produce state effects, this article theorizes the existence of transnational geopolitical assemblages that incorporate foreign policy apparatuses of multiple states. Everyday material and discursive circulations make up these assemblages, serving as conduits of affect that produce an emergent agency. To demonstrate this claim, I outline a genealogy of the UKUSA alliance, an assemblage of intelligence communities in the United States, United Kingdom, Canada, Australia, and New Zealand. I then trace the circulation of materialities and affects—at the scales of individual subjects, technological systems of mediation, and transnational processes of foreign policy formation. In doing so, I offer a bottom-up process of assemblage that produces the emergent phenomena that proponents of civilizational thinking mistakenly attribute to macroscaled factors, such as culture

Taxation and Development: a Review of Donor Support to Strengthen Tax Systems in Developing Countries

Recent years have seen a growing interest among donors on taxation in developing countries. This reflects a concern for domestic revenue mobilization to finance public goods and services, as well as recognition of the centrality of taxation for growth and redistribution. The global financial crisis has also led many donor countries to pay more attention to the extent and effectiveness of the aid they provide, and to ensuring that they support rather than discourage the developing countries’ own revenue-raising efforts. This paper reviews the state of knowledge on aid and tax reform in developing countries, with a particular focus on sub-Saharan Africa. Four main issues are addressed: (1) impacts of donor assistance to strengthen tax systems, including what has worked, or not, and why; (2) challenges in ‘scaling up’ donor efforts; (3) how to best provide assistance to reform tax systems; and (4) knowledge gaps to be filled in order to design better donor interventions. The paper argues that donors should complement the traditional ‘technical’ approach to tax reform with measures that encourage constructive engagement between governments and citizens over tax issues.Department for International DevelopmentBill and Melinda Gates Foundatio

Rights-based Approaches and Bilateral Aid Agencies: More Than a Metaphor?

It could be argued that the rights based approach … is no more than ametaphor; a concept that catalyses a set of values into a phrase that many people can adopt and adapt. It is a general statement in favour of equitable development, involving widespread participation of those with no direct control of, or access to, the power of the state … If we still take rights as a legal concept then much of what passes as rights based is unlikely to be successful because there are often no state bodies committed to meeting the obligations implied. There is also a sense in that the “emperor has no clothes ” as there are too many people arguing about the details of what a rights approach should be and how it should be operationalised.Meanwhile, this is happening in the absence of any clear idea of what it is they are engaging with. (Pratt 2003: 2)

Towards malaria elimination - a new thematic series

The launch of a new thematic series of Malaria Journal -- "Towards malaria elimination" -- creates the forum that allows carrying scientific evidence on how to achieve malaria elimination in specific endemic settings and conditions into the circles of scientists, public health specialists, national and global programme managers, funders and decision makers