A call for proposals for an AERC Collaborative Project on ‘Capital Flight and Tax Havens’
CALL FOR PROPOSALS
AERC COLLABORATIVE RESEARCH PROJECT ON: CAPITAL FLIGHT AND TAX HAVENS
1. Introduction
The African Economic Research Consortium (AERC), established in 1988, is a public not-for-profit organization devoted to the advancement of economic policy research and training. AERC’s mission is to strengthen local capacity for independent, rigorous inquiry into problems pertinent to the management of African economies, through a synergetic programme combining economic research with postgraduate training in economics. There are two principal approaches to this: learning by doing research in thematic, collaborative and other modalities, and support for postgraduate training through collaborative master’s and PhD programmes.
Capital flight is a serious problem in Sub-Saharan Africa as it impacts negatively on capital scarce economies. It is estimated that between 1970 and 2010, capital flight from African countries has amounted to over $1.3 trillion, and evidence suggests that capital flight has increased since 2000, a period that coincides with the commodity-driven growth resurgence in Africa.
The opacity of the international banking system, especially the expansion of the so called safe havens, facilitates the flight of capital and makes it difficult for African countries to track their stolen assets. Moreover, African countries experience large losses in revenue especially from their natural resources through tax evasion, trade mis-invoicing, and transfer pricing. The result is reduced domestic savings for funding investments and also loss of tax revenues for funding public expenditures like health, education and public infrastructure.
The severity of capital flight and illicit financial flows varies from country to country and across regions in Sub-Saharan Africa. In addition, countries with different levels of natural resource endowments may be affected differently as they administer differential tax regimes on their natural resources. An in-depth study of a few selected countries will provide both data and lessons that will be useful to policy makers and civil society more generally. In this context, the African Economic Research Consortium (AERC) is carrying out a research project on Natural Resource Taxation, Illicit Capital Flows and International Financial Service Centers/Secrecy Jurisdictions.
AERC is therefore calling for research proposals/expressions of interest from AERC network members and/or other researchers interested in undertaking country-based projects as part of the AERC
collaborative research project on Natural Resource Taxation, Illicit Capital Flows and International Financial Service Centers/Secrecy Jurisdictions.
The country case studies will focus on, but not limited to the following themes:
- Capital Flight and Economic Development;
- Economic and Institutional Factors of Capital Flight;
- Capital Flight and Natural Resources;
- Capital Flight and Governance;
- Capital Flight and Macroeconomic Policy;
- Capital Flight and Tax Evasion;
- Capital Flight and Poverty Reduction;
- Intra-Africa Capital Flight;
- Capital Flight and Financial System; and
- Capital Flight and Institutional Frameworks to Promote Transparency
2. Eligibility Requirements:
Researchers based in the case study countries with all, or some, of the following profile are encouraged to submit a proposal. At least one team member must have:
- A strong publication record, especially in the relevant area;
- Completed at least one AERC research project (either thematic or collaborative project); and/or
- Participated in, or finalized a research project on a relevant topic not necessarily funded by AERC.
Qualified women are encouraged to apply
3. Proposal Requirements:
Each proposal, not to exceed 15 pages, should include the following:
Objective (s): A brief statement of the specific objectives of the study.
Methodology and Data: In addition to the usual statement detailing how the research objectives are to be achieved, researchers intending to investigate specific issue(s) drawing on country data must demonstrate availability and access to the requisite data required for the study Expected Outputs: A high quality, policy relevant and publishable research report of not less than 30 pages to be approved by an independent peer reviewer. A policy brief of no more than 5 pages should also be produced.
Statement of Qualification and Current CV(s) for each author (include in the CV: nationality, gender, and full contact details).
Work Programme and Timeline: A brief description of the activities and timeline needed for each activity. Total duration of the study should not exceed 12 months
Budget: Estimated expenditure by major line items, e.g., research assistance; travel; computer time; secretarial support; honorarium etc. Total budget should not exceed US$15,000.
Proposals to be sent to:
AERC Director of Research at cresearch@aercafrica.org
on or before 15th August , 2013
Authors of proposals will be informed of the decision of the project by 30th September 2013………