Investor incentives plain loss of revenue
Posted Monday, May 21 2012 at 00:00
- Capitalists are by nature bold and greedy spirits who will do business with the devil in hell, which is why Western mining corporations are to be found in DRC Congo. So, why would the government of Kenya entice them with tax holidays when research shows that this is the best way for KRA not to meet its targets?
In a fast growing country like ours, 12 weeks is an acceptable probation period. If you were told that Mogadishu only requires you to have one permit processed and issued in one day to set up shop, you probably still would not go there.
Regulation is not entirely bad for an economy. Remember, China has a highly regulated banking system and, like India, heavy restrictions on cross border transfer of capital.
It is corrupt, undemocratic, and actively discriminates against foreign companies. It also has not bothered much with intellectual property rights. These ills still have not stopped it from being one of the fastest growing economies on earth.