A study published jointly by four organisations is advocating for further reform of the global tax system. This new research by the Tax Justice Network, the Global Alliance for Tax Justice, Public Services International and Oxfam International reveals that even G20 countries are affected by tax dodging by US multinationals. However, low-income developing countries remain the hardest hit because corporate tax revenues comprise a higher proportion of their national income, which translates in cuts to essential services.
This briefing calls for a complete rethink of the current global tax system based on the OECD’s Base Erosion Profit Shifting (BEPS) programme which the authors claim is not sufficient to deter corporations from using key methods of tax avoidance (such as proxy ‘holding companies’ in low tax countries).
The Global Campaign for Education (GCE) has published a new report which reveals a worrying failure in reaching education financing goals.
Taking stock of investment and aid levels in education since the goal-setting Dakar Education Forum fifteen years ago, Education Aid Watch 2015 checks delivery against promises made by donor countries and finds that they fall short of the pledged donor support for the Education For All and Millennium Development Goals.
In contrast, using GSW’s latest analysis of the budgets of 66 low-income and lower-middle-income countries, the report shows that more than half of aid recipient countries had increased the share of their budgets going to education since 2012.
Despite these positive advances in aid recipient countries and the continued commitments of some donors, the reports paints an overall picture of wholly inadequate support for the agreed goals and offers concrete recommendations to realise the post-2015 pledges.
Francophone Finance Ministers from LICs met on 8th October in Lima, Peru, in the margins of the World Bank and IMF Annual Meetings. The meeting was chaired by Mr. Amadou Ba, Minister of Economy, Finance and Planning of Senegal, represented by Mr. Abdoul Aziz Tall, Minister at the Presidency in charge of the Plan Sénégal Emergent, and co-chaired by Mr. François Maurice Gervais Rakotoarimanana, Minister of Finance and Budget of Madagascar.
Four main issues were on the agenda. Ministers (i) emphasised the importance of increasing public finance to achieve the SDGs and making sure this remains at the heart of development finance; (ii) called on a thorough reform of the global tax system, going beyond the current proposals by revising tax and investment treaties especially in the extractive and fisheries sector, while committing to mobilise more domestic revenues in LIC countries, (iii) highlighted the need to mobilise significant amounts of additional innovative financing, and (iv) recommended LICs as well as the rest of the international community remain vigilant to prevent further debt crises.
These issues were later presented by the chair of the meeting at a press briefing attended by media and CSO representatives. You can download the communiqué here.
DFI also presented the results of a study on revenue mobilisation it carried out in Francophone LICs in 2014 -2015.
Did the Third International Conference on Financing for Development deliver and meet expectations? And how should the Sustainable Development Goals (SDGs) be financed?
In this blog hosted by the United Nations Research Institute for Social Development (UNRISD), Matthew Martin reflects on the outcomes of the Conference held in Addis Ababa last July and its implications on the financing of the SGDs, and makes recommendations to ensure they are efficiently financed.
Last month in New York, the first UN Principles on Sovereign Debt Restructuring Processes were unanimously adopted by the UN General Assembly.
Agreed at the Ad Hoc Committee on Sovereign Debt Restructuring Processes, this set of nine principles builds on the UNCTAD Roadmap released earlier this year and is intended to guide future restructuring processes. It could serve as a basis for future deliberations in this area and seeks to limit the actions of vulture funds.
A formal UN GA Resolution is to be adopted during the next General Assembly, which will officially adopt the new UN principles by not just the Committee but the whole General Assembly, and mandate a follow up process.
As the second phase of the Seco-funded assistance to Sudan on debt strategy formulation, DRI held a technical training workshop with 18 government officials from the Ministry of Finance and Central Bank of Sudan. The workshop trained officials in Debt Relief Analysis using Debt Pro, in Debt Sustainability Analysis using the LIC-DSF, and in cost and risk analysis.Leer más...
A new report from Results UK uses Kenya as a case study to explore the implications of scaling-up Universal Health Care (UHC) in a country graduating from lower income to lower middle income status, and the challenge this will pose the country as Overseas Development Assistance (ODA) levels for health reduces in future years.
While acknowledging the need for ODA to continue to play a vital role, they also point to the increasingly important role domestic resource mobilisation (DRM) will have to play in the context of stagnating aid - especially when aid has previously provided close to 50% of the health budget (rising to 70% in some highly donor dependent sub-sections, such as HIV & AIDS).Leer más...
Are African countries meeting the health spending targets? Based on the latest GSW spending data, this scorecard developed by GSW and the Africa Health Budget Network provides an at-a-glance view of 30 African countries’ performance in reaching health spending targets.
The scorecard assesses performance on 4 indicators:
1. Is government health spending consistent with country wealth?
2. Is health spending prioritised in the government budget?
3. Does the government spend enough on each person’s health?
4. Is government health spending transparent?
13.15-14.45 @ Elilly Hotel (Classic Hall)
Come and hear what developing countries and independent experts have to say about what is wrong with the international tax system and what needs to be done to make it fairer and more progressive.
To finance the SDGs and build a just world without poverty, the Financing for Development Conference in Addis Ababa must produce a communiqué which encourages the international community to reform the international tax system fundamentally, going beyond the BEPS/AEOI initiatives, so that developing countries can mobilise theresources needed for their development.
This side event will allow stakeholders to discuss the priority global and national measures which are needed to ensure a much more significant increase in tax revenues in developing countries, and the initiatives being taken to introduce such measures. The discussion will cover changing tax treaties, eliminating tax exemptions, combatting illicit flows, and going way beyond BEPS in the fight against corporate tax evasion and avoidance.Leer más...
The Belgian Government took action on 1st July 2015 has to prevent creditors from exploiting the poorest countries in the world through the Belgian courts. Supporters of international financial regulation have welcomed the country’s pioneering move to pass a law reinforcing Belgian tribunals’ legal framework to tackle so-called “vulture funds”.
The legislation will now cut the wind out of creditors’ sails from using Belgian courts to extract harsh and inequitable payments from poor countries for debts that the investment companies or funds have bought for a fraction of the cost. Belgian tribunals will now be equipped with more effective tools to implement a more stringent regulation against such speculative behaviour and will therefore ensure developing countries are protected from companies’ exploitative practices which hinder their economic growth and development.
For more information, you can read a blog on this issue by Eurodad and consult an article (in French) by Belgian NGO CNCD-11.11.11 which has been actively advocating for years for this legislation to come to fruition.
A new IMF publication takes stock of poverty reduction strategies implemented in Sub-Saharan Africa, in the context of Poverty Reduction Strategy Papers (PRSP). This paper finds that there is no conclusive evidence that its implementation has played a role in reducing poverty and increasing the income share of the poor. In fact, the research reveals that despite PRSP countries’ post-crisis economic resilience, the poverty headcount has not reduced and growth has more than proportionately benefited the top quintile during PRSP implementation.