Blockchain: creating African tax payers

photo: 2015, Holden Warren, Liberian Bush Meat (in this case bats). Limited access to protein makes bush meat a high-value frontier commodity.

On the Blockchain, value can be assigned to anything at any level; this will lead to a new global era of value creation. This new system of value creation and documentation will provide a mechanism where Africans can pay taxes; ushering in a new standard of accountability for African leaders. The inability to pay taxes leaves the average African politically mute and reliant on labor strikes, demonstrations, riots and revolution as the primary means to gain a political voice.

Without organic means of revenue generation, African governments seek funding from international aid organizations. A major downside to international aid; is it creates governance system dedicated and dependent on securing more and more international aid money — it would be idiotic not to, considering the dire needs. Naturally, these political systems create entrenched culture and procedures to fund government functions. From Colombia, through Iraq and Afghanistan to Africa whenever there is a need for infrastructure or any training program my first thoughts are what international funding source can I find to support this effort? I first look to international funding sources, in part because I know that will be the first thought of every local leader involved. Secondly, international money has more controls and accountability mechanisms attached — offering international monies some protections against pilfer. Unfortunately social justice is dependent on social contribution and under this paradigm, foreign tax revenues set the conditions for foreign interests to enjoy disproportionate influence in many African governments.

Any government that factors the Blockchain into its tax collection strategy will open up an enormous source of funding and more importantly will refocus their political systems back to serving the people. Paying taxes is a form of political participation — participating in a nearly universal tax system will allow tax burdens to remain low, while providing the needed revenue for needed civic functions.

What will this look like?

Factoring that the Blockchain can assign value to anything — value can be assigned to the production of renewable energy or proper management of wastewater. New economies will rise in these fields, turning local communities into revenue generators for doing nothing more than properly cleaning their surroundings and producing electricity from sustainable sources. Using Decentralized Applications (DApps) and Smart Contracts local community members can earn and trade value in the pursuit of a green energy future; a future where access to sustainable power and potable water is no longer a dream.

If I had to make a prediction — the Blockchain will reinforce sub-national governance. As developing economies grow from the bottom-up a renewed rise in the city-state is likely to emerge — bolstering new levels of community resiliency and more localized decision-making.

Decentralizing through the Blockchain will bring a new efficiency to economies and governance systems. Localizing systems doesn’t inoculate us from the ills of corruption and bureaucratic inefficiencies, however it does reduce the scale and impact of these evils.

Transparent documentation of value creation and trade the Blockchain offers will quickly create a path to building a tax paying culture in developing economies. As things stand presently, the idea of a mass popular tax base isn’t even a viable dream in many places around the world.

Communities can start creating, trading, and retaining the quantifiable value of sustainable energy production and wastewater management. A currency — a measure of value that is based on the process of turning waste to electricity and clean drinking water, creates a path that is both environmentally conscious and socially beneficial for ALL people to generate value.

photo: 2015, Holden Warren, Liberian Bush Meat (in this case bats). Limited access to protein makes bush meat a high-value frontier commodity.