Eat the Rich

about 500 miles. I talked to the manager of a luxury hotel near Mto-wa-Mbu, a Kenyan whom I’ll call Shabbir, and his friend, a Tanzanian named, let’s say, Mwambande, who ran the plush tented camp down the road. Shabbir said it was difficult to get these resorts to work. What was going on in his kitchen right now “was hell.” And at another hotel in Tanzania, I did watch a waiter just arrived from rural climes being utterly confounded by a soda-can pop-top. I asked Shabbir and Mwambande if tourism could make a country like Tanzania rich. Shabbir didn’t think so. He was leaving for better opportunities in Vietnam. Mwambande didn’t think so, either, but more optimistically. “Tourism acts as a showcase,” he said. “It helps people come see a place for them to invest.” They explained that tourism itself isn’t very profitable for Tanzania because so much of what’s spent is “yo-yo money.” The foreigners arrive via foreign- owned airlines in planes built by foreigners. They stay at hotels constructed with foreign building materials, ride around in foreign-made cars, and eat food imported from foreign places. The money rolls in, pauses for a moment, and rolls back out. Some of the foreigners are, indeed, rich people. “Is the Tanzanian government giving them any incentive to invest?” I asked. “Oh, yes,” said Mwambande, “if you build a plant here you get a five-year tax holiday.” “But,” I said, “it normally takes a new enterprise five years to make a profit.” Mwambande and Shabbir laughed. “And what about after the tax holiday?” I said. “What are taxes like then?” Mwambande and Shabbir laughed and laughed. In a February 10, 1997, story about a Tanzanian crackdown on illegal tour operators, The East-African newspaper mentioned these taxes just in passing: “a hotel levy (20%), sales tax on food (15%), sales tax on fresh juices and cakes (30%), stamp duty (1% of turnover), withholding tax on goods and services (2%), training levy (10% on expatriate employees’ taxable income), payroll levy (4% on gross taxable income of all employees), vocational education training agency tax (2% on gross taxable income of all employees).” Forget about tourism. How about trade? Trade benefits everyone. Anytime I’ve got something you want more than I want it, or vice versa, and we swap instead of steal, the economy is improved. But trade in Tanzania has—surprise —its problems, too. Starting right at the dock. Says Foggy Bottom’s Commercial Guide: “The Customs Department is the greatest hindrance to importers

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