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The scandal centres on a firm called Goldenberg International, which claimed a great deal of money from the central bank in export compensation for allegedly fictitious gold and diamonds.
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They want extra export opportunities in compensation.
Given that the vast majority of income inequality is driven by growth in top incomes, focusing on exports and executive compensation seems especially relevant and important.
In Figure 2 we see that exports and executive compensation have followed a similar trajectory over the last 70 years, suggesting that globalization is a promising long-run explanation for the growth in top incomes.
Another issue involves Saudi Arabia and other oil exporting countries that want compensation for any lost revenue should countries reduce their use of fossil fuels.
Fabric (UA) Tech.Build.systems + related energy carrier only nearby, distant Renewable source on-site, nearby, distant Compensation by exporting on-site, nearby, distant Energy needs Total primary energy use fp,tot Non-renew.
And Vale doesn't pay regular taxes in Brazil due to export incentives, and provides minimal compensation to local communities.
As an interim measure, we have also proposed that least-developed countries be granted financial compensation for lost export revenues that are due to those subsidies.
The fact that exogenous export shocks significantly increase executive compensation suggests that globalization does indeed affect top incomes in part through non-market channels.
The scam, exposed five years ago, involved paying a jewellery company millions of dollars in compensation for fictitious exports of gold and diamonds.
The less-developed countries would not have to take part, but would receive compensation if their exports were hurt through action taken by the others.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com