Monday, July 18, 2011

Dodd-Frank's Unintended Africa

The Dodd-Frank bill is hurting our own economy in the name of "better oversight" of our financial services industry, but even I wouldn't have expected that it is also hurting the poorest among Africa's population.  According to today's Wall Street Journal, Section 1502 of the Dodd-Frank bill requires that anyone purchasing tin, tantalum, and tungsten in the Congo or neighboring countries must certify that the purchase is not supporting African atrocities.  If they cannot do so, companies must include the statement in their annual reports that their products "may be funding African atrocities".  The result is that sales of these materials in Africa has dropped 70% putting small time miners and an untold number of other Africans out of work while the atricities continue unabated.


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