The Baku Tbilisi Ceyhan pipeline came under fire last month. A report by independent financial analysts found that returns would be “marginal” if everything goes according to plan. “But with considerable political risks involved,” said author Mark Mansley, “it could become a real headache for BP. Banks would be well advised to be cautious in their decisions on this”. Support from public institutions such as the International Finance Corporation has been delayed until September 2003. Meanwhile activists have filed complaints in 5 countries alleging that the project breaches the OECD’s Guidelines for Multinational Enterprises.
The IMF and the World Bank are increasingly engaged with the challenge of addressing how tax avoidance and evasion affect developing countries, but need to address the role played by multinational enterprises and tax havens in exacerbating inequality and undermining countries’ domestic revenues.
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