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Offshore Banking too complex to understand for RNC Propagandist David Himbara

A fake controversy about off-shore banking and foreign aid is being pushed by the usual suspects, an established neo-colonialists group angered by the Rwandan success model. The self-publishing fraud, almost always high on weed, David Himbara is at the forefront of this fabrication, desperately attempting to provoke controversy. As part of his routine work, he is propagating a fallacy designed to denigrate and disparage.

In his obscure anti-Rwanda narrative, he produces a World Bank report that attempts to link three different concepts: foreign aid, off-shore banking, and tax haven banking. Truth be told, these concepts are so far apart and should not have been mixed together. The Economist, on the 13th of February 2020, reported on the paper which tried to mix apples and oranges. It elaborated on how the research initially began as a private paper that ended up receiving the World Bank stamp by its Chief Economist Penny Goldberg. Goldberg, conspicuously, quickly left the World Bank to return to Yale University barely 15 months after her World Bank appointment.

Read: The World Bank loses another chief economist, The Economist

Offshore banking is basically banking outside your residential jurisdiction. There are many valid and legal reasons for the practice, but the generally negative perception is that offshore banking is a preserve for the elite, hiding their wealth from the taxman. The paper’s innuendo is that foreign aid is diverted to Offshore Banks simply because nationals and residents of aid receiving countries bank outside their jurisdiction is false and denigrating.

Contractors, expats, investors, and many others use Offshore Banking on a regular and legal basis. The World Bank paper, Elite Capture of Foreign Aid, covers the period of 1990 to 2010, and the Bank is clear:
“The leaks averaged about 5% of the bank’s aid to these countries.”
“And the 5% of “leaks” might include some innocent money, earned by aid contractors who just happen to prefer offshore havens to other financial centres.”

With the case of Rwanda, in 1994 the genocidal regime emptied the central bank and ran away with their loots. In the reconstruction effort, Rwanda received significant aid and grants from various development partners. For fugitive Himbara and other anti-Rwanda lobbyists to insinuate that the use of Offshore Banking is an indication of corruption or other illegal practices is done out of ignorance.

On Rwanda, the Elite Capture of Foreign Aid paper contains several other distortions such as its estimated quarterly growth rate. It estimates the quarterly GDP growth rate at 1.0%, when in reality the figure floats between 8 and 12%. The numerous omissions can only be the classic case of researching to prove a point as opposed to research to discover knowledge.

It is what widely referred to as an inductive fallacy or a generalization, whereby a conclusion is drawn for little of no evidence.

The RNC propagandist Himbara thinks that deposits in offshore banking are President Kagame’s money; on the contrary these deposits in the havens and non-havens represent all individuals and cooperation hailing from Rwanda.

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