Suppose you were appointed economic advisor to a less-developed nation in Africa. The nation seeks to encourage capital formation and wants to increase the rate of savings of its own residents and...

Suppose you were appointed economic advisor to a less-developed nation in Africa. The
nation seeks to encourage capital formation and wants to increase the rate of savings of
its own residents and encourage foreigners to invest in their nation. What role would you
assign to property taxes in this nation to achieve its objectives? Additionally, discuss two
other features of an economic system that you would recommend this country
implement. Explain and justify each choice.
Introduction
The FDI in African region has increased from $1.26 billion In 1970i to $55.04 billion in
2010. No doubt that between these two years FDI flows to African region has increased
by gigantic 4247% but the problem is something else which is as follows:- (Abdul
Ganiou,2010)
1) The share of FDI inflow to African region has dropped from 9.5% in 1970 to 4.4% in
2010.
2) The share in Developing countries saw a huge drop from 32.8% in 1970 to 9.6 % in
2010.
These figures show that though there was progress but compare to other nation African
region performance has decreased. Now, the need is that the nation seeks to encourage
capital formation and wants to increase the rate of savings of its own residents and
encourage foreigners to invest in their nation. Hence not only FDI, but also other things
must be improved to improve the condition of African region.( Abdul Ganiou,2010)
Property tax is one of the main things which played an important role in increasing
Investment climate and capital formation along with...