Project artifact
- 1. Introduction: The target audience in this paper of discussion is the community and general public at large so that they are enlightened on matters of economic performance in the Zambia. In this artifact, the discussion endeavors to explain one category of the financing solutions as elaborated by the Multilateral Development Bank (MDB) and how it can be applied to the nation. The finance solution that will be discussed is the adding, pooling and enabling. The reason being that, the country under study has non functional systems that incapacitates it to raise the much needed revenue to finance its projects .This has come up as a result of failure to put strategies for effective income generation. Main body Development is a critical component to any economy in the world and every nation always strives to get it. More critical is sustainable development which looks at meeting the needs of the people today without compromising the ability to meet future needs. In Africa, there is a landlocked country with a population of 15 million people and it is categorized under developing nation. The gross domestic product is standing at 26.8 US dollar and has been experiencing some fluctuations in the inflation rate. A large number of the said population still leave under the poverty datum line as the economy is still under the pathway to recovery. The problem being addressed The main problem is that, the nation cannot raise enough funds for sustainable development. The road network and infrastructure in the nation are a source of concern. The nation has mineral deposits in the ground which are exported but what is realized is not seen trickle down to the common person in the nation. The nation has no enough funds to complete the road network projects that were started due to lack of finances. The above elaborated situation can be a thing of the past if the nation can embark on sourcing funds vigorously through domestic resource mobilization (DRM) which basically is made up of funds raised locally (Economic Growth and Trade, 2017). This can be achieved through concerted efforts from the government, aid officials and the private sector. The government is there to assist in formulation and enforcement of various regulations and reforms as well as creating a predictable, transparent and conducive investment climate that provides opportunities and incentives for firms to invest productively.
- 2. The private sector can be a source of significant financial flows and expertise that can be channeled towards development goals in the nation while the aid officials can provide capital and advice. Financing solution and how it can be applied The financing solution that would be appropriate for this noble cause is the adding, pooling and enabling. This category of solutions covers new flows, such as taxes or fees, as well as policy- driven “flows” that are not traditional finance instruments/investments but do generate economic or financial value (Post 2015; finance for development). What has been the main challenge and obstacle to finance for development are week reforms and poor business environment. By applying this financing solution, the nation will be able to raise the much needed funds for development through effective tax implementation systems. Currently not all the individuals and companies are remitting taxes to the government but are rather evading. Therefore, the government will have raise funds by ensuring that both individuals and business are taxed appropriately. Zambia is rich in mineral deposits that attract investors from all over the world. There is a great need for raise funds through taxing the investor s in the mining sector as they generate a lot of profit. The nation has so far already introduced a framework that will accentuate the paying of taxes and this is been done via online A deliberate policy that will seem to favour and create a conducive environment for investments by the private sector. As much as an enabling environment is created, the necessary tax should be levied so that there are no unnecessary cash out flows from the nation. Every investor in to the nation must be made to build infrastructure so that when they want to return to their country of origin the nation can benefit from infrastructure. Equity investment is also fundamental, creating new businesses, generating new flows, jobs, and growth (Post 2015; finance for development). This can be seen to spur new investment areas by the private sector Policy guidance and lending strengthen the domestic policy, legal, tax, regulatory and institutional environment for many purposes such as increasing the country’s available resources.
- 3. Conclusion In conclusion, domestic resource mobilization is critical in the development of every nation including Zambia. Being a nation that strives to raise the much needed funds to meet its capital intensive projects, a critical financial solution has to be adopted; that of adding, pooling and enabling. In most cases, this covers taxes or fees and policy driven flows which can help the nation increase its financial flows. It is through this that, the nation will be able to recover from all illicit flows of funds through tax evasion and avoidance.
- 4. References http://www.un.org/esa/ffd/wp-content/uploads/2015/03/1ds-zero-draft-outcome.pdf Post-2015 Financing for Development: Multilateral Development Finance Global Funds in an Era of Aid Consolidation: What Systemic Challenges Lie Ahead?, ODI, 2011 USAID, Domestic Resource Mobilization; Economic Growth and Trade, 2017 United Nations (2015) Transforming Our World: The 2030 Agenda for Sustainable Development. New York: United Nations (https://sustainabledevelopment.un.org/content/documents/7891Transforming%20Our%20 World.pdf).