 60% of Zambians live below the poverty line  Historical, Geographical, and Social Reasons for poverty ◦ Economic Decline, Neglect of Agriculture Sector, Limited Access to Services, Markets, and Technical Knowledge  Tremendous Copper Reserves ◦ Africa’s biggest copper producer

 Multinational Companies control Copper Mines  Illicit Financial Outflows ◦ $8.8 billion lost between 2001 and 2010 ◦ Two times Zambia’s annual Government Revenue in 2011, $4.3 billion ◦ MCs move capital through western banks to avoid paying taxes on their profit

 Commercial Activities  Trade Misinvoicing: Companies conceal true value of exports/imports to avoid taxation ◦ 2008 Incident: Zambia robbed of chance to double its annual GDP ◦ Use of opaque network of subsidiary firms

 Incentivize Domestic Corruption and Undermine Good Governance ◦ Ready-made channels to smuggle illegal gains  Harm Development ◦ Loss of Government revenue inhibits investment in necessary services and infrastructure  Exacerbate Inequality ◦ Undermine Sensible taxation policies

 A case of David combating Goliath ◦ Natural Resource Giants: Glencore Xstrata ◦ Multinationals poach best talent from Zambian Revenue Authority

 International Relief ◦ G8 Summit  Punishing Those Facilitating Illicit Financial Flows  Making Voices Heard in Global Discussions ◦ Representation to ensure fair global solutions

 Jamie Pickering, Zambia’s Tangled Webs and Flows, available at going-flow-iffs-tax-justice-copper  Rural Poverty in Zambia, Rural Poverty Portal, available at ome/tags/zambia