The primary indicators for a jurisdiction to attract a negative investment rating or junk status is the presence of interposed regimes that are tax driven. In the case of Namibia, the jurisdiction has interposed regimes that have resulted in the country's economy being transformed from an ordinary open economy to a hybrid open target entity economy.
This transformation and characterisation of the economy is extremely harmful to the extent that any potential investor will seek the opinion of their finance and investment experts as to whether investing in a jurisdiction with such characterisation will yield any positive returns on their investments.
Investors may promise huge investments to the politicians, but once they get to the decision boardroom, the investment language changes and is dominated by numbers, effectively turning everything upside down. No show to actualise the investments and all is simply shelved or suspended.
Interposed regimes are the most dangerous economic viruses that have stalled the realisation of sustained economic growth and the near attainment of Vision In endeavouring to offset the lost development pace in the realisation of Vision , government is embarking on a presumably fast-tracked industrialisation agenda through the formation of the Namibia Industrial Development Agency NIDA. The presence of interposed regimes has not only exposed the economy to the attraction of a negative investment rating with a classification of a junk status economy but will,.
Namibia's industrialisation agenda is achievable, albeit with interpretive procedures on how the interposed regimes will be outmanoeuvred. If those in the governance system choose to look into the other direction of self-importance, Namibia's industrialisation agenda will become an endeavour leading to a white elephant effigy.
Interposed regimes have the effects of transforming and crippling economies if they are not interpreted thoroughly to attract inward investments that can contribute to effective industrialisation. In the absence of this capacity and these measures, the industrialization agenda will simply be equivalent to; the right seed, planted at the right season, but on the wrong ground with poor soil to sustain the growth.
Interposed regimes have their own cause of existence or primary reason why they are loaded into the economy, some of which include the administration of Bilateral Tax Treaties without regular interpretation of the treaties, the administration of Bilateral Tax Treaties with a scope which is skewed, the administration of such treaties using a taxing instrument which does not have safety net provisions, i. By submitting above, you agree to our privacy policy. The absence of Instrument Administration Interpretation Protocols is the fundamental reason why the interposed regimes were loaded into the economy and if this trend continues, the prospects for the realization of effective industrialisation and economic recovery is sadly very bleak.
Treasury will carry infinite budget deficits, which will have to be shouldered onto the next generation and the country becomes vulnerable to external borrowing terms, which even risk sovereignty of the country.
When an economy attracts a junk status or negative investment rating it is a clear signal of the existence of highly concealed interposed regimes that are sophisticated to detect but distorting both the revenue and tax base of the country, hence crippling the economy and repelling serious potential inward investments. Read the original article on New Era. AllAfrica publishes around reports a day from more than news organizations and over other institutions and individuals , representing a diversity of positions on every topic.
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Since the country gained independence in , great strides have been made in promoting unity, nation-building and socio-economic development. Apartheid laws have been repealed and provision has been made for the protection and upholding of fundamental human rights in the Namibian society. Access to health services and education has improved and Namibians play an increasing role in the country's fisheries and mining sectors through the economic empowerment of the Namibian people by granting them fishing quotas and mining concessions.
The challenge that remains for the nation is to join hands and march forward in unity. Although there will be difficulties along the way, Namibians will persevere and with hard work and as a united nation we shall conquer every challenge and overcome every obstacle. Vision visualises that Five-Year National Development Plans would be the main vehicles for achieving its objectives and realizing the long-term Vision.
Accordingly, successive National Development Plans NDP will contain the goals and intermediate targets milestones that will eventually lead the nation to the realization of the Vision. In its quest to uplift the standard of living and prosperity of all its peoples, the government adopted the strategy of economic diplomacy. The objectives of economic diplomacy are explicitly outlined in the White Paper on Foreign Policy and Diplomacy Management, adopted by Parliament in With an economy that is largely based on the extraction and export of primary commodities and a society many of whose people live below the poverty line, Namibia is a country that is very anxious to achieve rapid economic growth and, consequently, a significant reduction in the absolute number of the absolute poor.
This is why government has opted to pursue an outward-looking strategy for economic growth and development. Export-push is a central element of that strategy of economic development.
Hence, the need to place economic diplomacy as the cornerstone and main pre-occupation of our foreign policy operations.
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