19 July 2016 | Local News

By: Joseph Kalimbwe
The belief that reducing tax burdens on the well-off is good to everyone is a dangerous kind of economic-success idea and should have no place in the hearts of those who wish to see their countries grow into successful nations whose success story can serve as a source of inspiration to every country. This ‘Trickle-Down’ economic belief that it is good to relatively give a greater and bigger pie to the top of the economic spectrum is dangerously naïve. The notion that the absolute sizes of the remaining share in the country will then grow has given some moral players, most notably the International Monetary Fund and the World Bank the reason to doubt the future of the African continent.
The idea that cutting taxes for the rich is a good way to both raise revenue for the governments and create jobs for the unemployed has been viciously discredited by the International Monetary Fund. And because of that, we now do not need the expert advice from the IMF to realize that those with more money need to pay more tax than those with less. The idea of reckless financial borrowing has also received its fair share of criticism from academics and scholars alike. Nonetheless, most African countries continue to borrow huge amounts of money from the western donors while being fully aware that donors do not and never will lend out money without any incentives attached to it. Some African countries have even gone as far as measuring their economic successes in the most dangerous of ways; the idea that economic success can be measured by the number of millionaires the country has instead of the number of opportunities provided to everyone who works hard to have a fair chance of succeeding.
Yes, through hard work and life sacrifices, each of us can achieve our individual dreams. But the realities of today’s struggles have led to many people being labeled as “complainers”. A label which should not exist in the minds of every human being who views everyday struggles as something which can be defeated. In many African countries, the gap between the rich and the poor continues to sky rocket at a very disheartening rate.
As Africans and more specifically those in the corridors of authority, we should get away with the idea that if a few people succeed, then everyone else benefits. That kind of belief is dangerous for our future; top-down economic growth never works, it never did and never will. Trickle-down economics may have been famously coined during the Ronald Reagan Administration in the United States, but we have seen it race through the streets of African countries too. That is something that has to change if we are really serious about defeating our struggles because the world is moving forward and we must move with it even if it means embarking on the chameleon walk.
According to the International Monetary Fund and the World Bank, “countries looking to boost economic growth should concentrate their efforts on lower segments of society rather than bolstering the so called “job creators” with tax breaks. Widening the income inequality is the defining challenge of our generation”. This message of these global financial institutions is clear, should be heard by everyone who listens and needs no layman’s language explanation to be fully understood. With the extreme inequality in many African countries, individuals have an incentive to divert their efforts toward securing a favoured treatment and protection, failure to which may result in resource misallocation, corruption and nepotism which can so easily cause catastrophic consequences. Should such happen, citizens can begin to lose confidence in governmental institutions and ultimately in their very own future if their pleas keep on failing on deaf ears. What’s chocking is that while the inequality gap has become a hot topic world over - from the world’s number one economies to the third world countries like Haiti. In Africa, it is still unclear whether large scale policy changes will be made or bills will be passed to address the problem which continues to steal the future of too many people who could be good economic growth contributors.
Joseph Kalimbwe is a final year student studying towards a Bachelor of Public Management at the University of Namibia.

Similar News


PG under siege

2 days ago - 23 August 2019 | Local News

Opposition parties and other commentators have called for the head of the country's top prosecutor.This follows Prosecutor-General Martha Imalwa revealing on Wednesday that there was...

Reaching for the stars, and beyond

2 days ago - 23 August 2019 | Local News

Namibian-born Edward Ndopu's ambitious mission to space as the first wheelchair-bound human is in line with his bold and optimistic drive to disrupt and reshape...

Oondoolopa odha pumbwa okutula miilonga omilandu omipe

2 days ago - 23 August 2019 | Local News

Omalelo goondoolopa otaga ende taga endelele opo ga kale ga gwanithapo iipumbiwa iipe yuuministeli womidhingoloko, sho kwa tulwa miilonga oveta ompe ndjoka tayi pula omalelo...

I sacrificed my youth for this country -...

2 days ago - 22 August 2019 | Local News

Prosecutor-General Martha Imalwa sacrificed her youth for the independence of Namibia and has appealed for an end to ‘a deliberate crusade to discredit her’. Despite...

Hyena killed after chasing residents

3 days ago - 22 August 2019 | Local News

A hyena was shot dead by police officers yesterday at Ekolyanaambo village in the Oshana Region.According to Oshana police spokesperson, Warrant Officer Frieda Shikole-Ashiyana, the...

NIDA to clean up 'mess'

3 days ago - 22 August 2019 | Local News

The board of the Namibia Industrial Development Agency (NIDA) says it is unfairly portrayed in negative media reporting because it is in the process of...

Mashare villagers desperate

3 days ago - 22 August 2019 | Local News

A struggling family of 13 in Kavango East, who survive solely on the pension of the head of the household, is pleading for support.Namibian Sun...

San 'are slaves'

4 days ago - 21 August 2019 | Local News

Village secretary of the Onamatanga community Mpepo Festus says they are being marginalised by the previously disadvantaged, who are representing the San on decision-making bodies...

APP pins its hopes on Electoral Tribunal

4 days ago - 21 August 2019 | Local News

On Friday the Oshakati Electoral Tribunal will decide whether the Oshakati East by-election will go ahead on Saturday without the APP candidate.The Electoral Tribunal has...

Frustration, anger at Hoachanas

4 days ago - 21 August 2019 | Local News

Hoachanas residents are fed up with the Hardap regional council and have broken the locks of the half-completed toilets at the settlement.They said a dozen...

Latest News

Soldier charged with shebeen burglaries

2 days ago - 23 August 2019 | Crime

A member of the Namibia Defence Force has been arrested in connection with burglaries at six shebeens at Okakango location in Ondangwa.Operation Kalahari members have...

Letting the big fish swim

2 days ago - 23 August 2019 | Columns

Prosecutor-General Martha Imalwa has opened a Pandora's Box, following her revelations this week that any hopes of Namibia recovering the over N$600 million lost in...

Swapo threatened with court action

2 days ago - 23 August 2019 | Politics

Five Swapo members have threatened to take the party to court if their demand for the re-run of the Otjiwarongo district renewal of mandate process...

Dumpsite scramble

2 days ago - 23 August 2019 | Environment

Several municipalities are moving fast to comply with the ministry of environment's new regulations, which require towns to obtain environmental clearance certificates for their dumpsites.So...

Khomas elects Swapo 'pot' contenders

2 days ago - 23 August 2019 | Politics

The Swapo leadership in the Khomas Region have elected businesswoman Martha Namundjebo-Tilahun and 30-year-old City of Windhoek councillor Ian Subasubani to stand as National Assembly...

Land acquisition fund deemed unnecessary

2 days ago - 23 August 2019 | Agriculture

The Parliamentary Standing Committee on Public Accounts Committee questioned the existence of the Land Acquisition and Development Fund because government already has a finance system...

Certified royalty

2 days ago - 23 August 2019 | Art and Entertainment

King Tee Dee, formerly known as The Dogg, is an artist who has come full circle. After many years spent dominating the music scene by...

Battling creative exhaustion

2 days ago - 23 August 2019 | Columns

We have all heard this advice before - we can't continue to be productive and creative if we exhaust ourselves, or if we fail to...

The Fashion Soireè returns

2 days ago - 23 August 2019 | Art and Entertainment

Hosted by three of Namibia's fashion darlings; Reinhard Mahalie, Jay Aeron and Rumano Fabrishh, The Fashion Soireè is the first of its kind in Namibia.More...

Load More