TED-Ed: The true cost of gold | Lyla Latif

Mali produces significant gold but earns far less revenue due to corporate exploitation and corruption. Multinational corporations exploit legal loopholes to avoid taxes, smuggle gold, and engage in black market activities. This results in a loss of potential revenue for Mali, perpetuating poverty and economic reliance on these corporations. Similar patterns are observed in other African countries, highlighting a systemic issue of wealth extraction by foreign entities.

What is the main reason Mali and other African countries do not receive the expected income from gold production?

• High production costs

• Low global gold prices

• Lack of gold resources

• Greed and corruption

How do multinational corporations exploit Mali's need for tax revenue?

• By investing in local infrastructure

• By signing unfavorable contracts

• By providing employment opportunities

• By increasing gold production

What loophole allows corporations to export large amounts of gold without paying taxes?

• Government subsidies

• Unlimited sample size in licenses

• High export tariffs

• Lack of export regulations

Which method is used by corporations to minimize their tax liabilities in Mali?

• Investing in local businesses

• Using tax havens

• Hiring local workers

• Increasing production costs

Where is the gold smuggled from Mali primarily sent?

• United States

• South Africa

• China

• United Arab Emirates