Development Finance & Tax Justice - Archive

By Bodo Ellmers

The implementation of the 2030 Agenda has fallen massively behind. Insufficient development finance is a major reason for this, as the slowly subsiding COVID-19 crisis had led to a simultaneous collapse of all sources of finance. This year's UN High Level Forum on Sustainable Development (HLPF) should have been dedicated to building back better after the crisis. The title did retain the "building back better." De facto, however, the HLPF was overshadowed by a new wave of [...]

By Bodo Ellmers

The G7 summit in Elmau was the highlight of the German G7 presidency in 2022. Contrary to the original intentions of the German government, security policy and geostrategy dominated the process, due to the conflict in Eastern Europe. By contrast, the G7 largely abandoned its claim to coordinate global economic issues. Financial commitments to third countries were made primarily in the areas of food and infrastructure. However, the former do not seem commensurate with the scale of [...]

 

By Bodo Ellmers

Every spring, the UN publishes the Financing for Sustainable Development Report. It contains the latest data and analyses on various aspects of financing for development. In addition, policy recommendations on a priority topic, to be implemented in the UN's Financing for Development (FfD) process. In 2022, the report should shed light on ways and means to overcome the financial divide between North and South. This is because rich countries had considerable financial leeway to mitigate [...]

An unintentionally honest report on the state of EU development finance

With some delay, the European Commission has published the new "Investing in Sustainable Development Report".  A few years ago, the report replaced the older EU Accountability Report or so-called "Monterrey Package" of the EU, which originally reviewed the implementation of the UN agreements on financing for development in the EU and its Member States.

In the meantime, it is based primarily on self-reporting by the EU Member [...]

After two years of virtual WhatsApp diplomacy, the United Nations Financing for Development (FfD) Forum was held again this year in-person and in the presence of the public at UN Headquarters in New York. The stakes were high. While the world´s countries are slowly and unevenly recovering from the COVID-19 crisis, new challenges have emerged, such as interest rate shocks and massive price increases for energy and food, which are having a particularly devastating impact in countries of the Global [...]

A group of 17 CSOs has issued an open letter to G20 Finance Ministers, Central Bank Governors and the IMF calling for a new US$2.5 trillion issuance of reserve assets called Special Drawing Rights (SDRs), and reformed criteria for distributing them in a fairer way and according to needs.

Read the open letter here

Once in a decade, the UN convenes a conference on the least developed countries (LDCs) to negotiate a programme of action, consisting of political agreements and international support measures. Financing for development in all its dimensions is an essential component of these programmes. The process that led to the Fifth UN Conference on Least Developed Countries and the Doha Programme of Action took place under the difficult conditions of the COVID-19 pandemic. Given the limited financial space that LDCs had [...]

Livestream HERE

 

Special Drawing Rights (SDRs), the special reserve currency of the International Monetary Fund (IMF), have the potential to become a key mechanism for financing a just transition to climate-resilient economies and supporting the COVID-19 recovery. Following its historic allocation of $650 billion in SDRs in August 2021, the IMF has proposed a Resilience and Sustainability Trust (RST) to facilitate the re-channeling of these resources to vulnerable countries.

As a part of the 2022 IMF and World Bank [...]

This briefing paper gives an overview of the current challenges in different development finance action areas. In the second part, we give an overview of the UN’s FfD process and of the international agreements on Financing for Development. Based on our analysis, we identify 10 key levers for financing sustainable development. With these, Eu­rope can make a substantial contribution to financ­ing for development and thereby to the successful implementation of the 2030 Agenda for Sustainable Development worldwide.

On August 23 2021, the International Monetary Fund (IMF) performed the long desired payout of special drawing rights (SDRs) to the tune of 650 billion US dollars. Especially for countries of the Global South, the SDRs are a welcome cash injection. Unlike the EU and the USA with their economic recovery programs worth trillions, developing countries have so far only been able to mobilize few financial resources to cope with the impacts of the crisis, and for this reason too [...]

The G20 Summit in Rome takes place amidst heightened debt crisis risks. According to latest World Bank figures, the debt stock of low income countries (LICs), the world´s poorest countries, surged by a staggering 12% in 2020, reaching a new record high. Poor countries transfer an increasing share of their tax revenues to creditors, to service their debts. The situation will further deteriorate when the G20´s Debt Service Suspension Initiative expires in end of 2021 in addition to the resumption [...]

As the pandemic exacerbates multiple crises in developing countries, Special Drawing Rights (SDRs) are a crucial option to help finance the COVID response and hasten an equitable and inclusive economic recovery. With the SDR distribution being proportional to IMF countries’ quotas, the new allocation of US$650 billion does not ensure sufficient SDRs go to developing countries. 

This is why many have been calling for an allocation in the order of US$3 trillion. Moreover, advanced economies are in less need [...]

This side-event at the UNCTAD XV Civil Society Forum discusses UNCTAD's work on debt crisis prevention and resolution. Participants are invited to identify UNCTAD's strengths and areas where there is room for growth, and express their expectations towards UNCTAD's work on debt on debt issues in the period following UNCTAD XV, an era in which global debt levels have reached record highs due to the Covid-19 crisis.

 

Participants: 

• Bodo Ellmers, Global Policy Forum (Moderator)
• Attiya Waris, UN Independent Expert [...]

Time to overcome contradictions and hypocrisy in the COVID-19 crisis

Policy responses to the COVID-19 pandemic and resulting economic crisis have greatly exacerbated national and global inequalities. Blatant examples are the unfair distribution of care work, relying mainly on women and poorly remunerated if at all, and the global disparity in the distribution of vaccines.

So far more than 60 percent of people in high-income countries have received at least one dose of COVID-19 vaccine, but less than 2 percent [...]

Global debt levels have been surging constantly over the past decade, and the need to fight the COVID-19 crisis with running fiscal deficits and borrowing money has been a further shock to global economies. While central bank interventions have been keeping interest rates low in the global north, countries in the global south are particularly vulnerable to crisis because they owe large amounts of external debts. The risk of debt crisis is high and debt service costs are rising rapidly [...]

By Bhumika Mucchala (Senior Policy Researcher, Third World Network), and Christopher Hope (Policy Officer, Bretton Woods Project).

A summary of key issues emerging from recent high-level event on SDR recycling mechanisms, funds, and vehicles.

Read the blog on the eurodad website or the Spanish translation via www.latindadd.org

This virtual seminar will feature high-level policymakers and experts from Latin America, Africa, the UN, the IMF and the Vatican to discuss:

• What role can Special Drawing Rights (SDRs) play in global pandemic crisis response and recovery?
• How can SDR transfer mechanisms be designed to maximize impact for all countries that need support, while avoiding harm?
• Is there a role for global, regional and sub-regional development banks and/or new trust funds or vehicles in the mechanisms?
• What complementary policies and [...]

The UN Forum on Financing for Development (FfD) 2021 was the first FfD forum held as planned since the outbreak of the COVID-19 crisis. Accordingly, the expectations were high. Development finance is currently facing a triple challenge: to mitigate the humanitarian crisis, funds for an acute crisis response are needed – for example, to finance universal access to vaccines through the COVAX-facility, or for social protection measures. To mitigate the further divergence between countries, resources must be made available for [...]

Die Entwicklungsfinanzierung ist ein zentrales Thema in den Diskussionen über eine neue globale Entwicklungsagenda und die universellen Nachhaltigkeitsziele (Sustainable Development Goals, kurz SDGs) für die Zeit nach 2015. Im September 2014 haben die politischen Vorbereitungen für die vom 13.-16. Juli 2015 in Addis Abeba stattfindende dritte UN-Konferenz über Entwicklungsfinanzierung (UN Financing for Development Conference) begonnen. Auf der Tagesordnung der Konferenz steht eine breite Themenpalette: von der Mobilisierung nationaler Mittel für Entwicklungsfinanzierung in Entwicklungs- und Schwellenländern selbst über die öffentliche Entwicklungsfinanzierung [...]

International cooperation in tax matters has intensified in the last few years. Processes under the anti-BEPS framework at the OECD/G20 are proof of that. Nevertheless, countries in the global South that are suffering from the results of tax evasion and avoidance the most are still to a great deal marginalized and excluded from this. In some cases, countries in the global South are even suffering from a non-conducive global environment that limits their policy space in tax matters. For the [...]

Fair taxation can help in fighting inequality, realizing human rights, and ensuring the implementation of the sustainable development goals (SDGs). However, a succession of reports of tax dodging by multinational corporations have cast the spotlight on the need for reform of the international tax system. It has also become evident that international tax avoidance makes use of tax havens and the offshore secrecy system, which also facilitates capital flight and money laundering for criminal and terrorist purposes.

Recognizing the need [...]

The traditional models of interaction between public and private sectors, largely based on corporate regulation and public procurement, are relatively well understood and accepted. However, the most recent wave of economic globalization has been accompanied by a widened process of commodification with the effect that a widening range of goods and services are now being provided by market actors rather than states. At the same time, the classic models of public-private interaction have been challenged by the rise of new [...]

Organised by the CSO for FfD Group together with the Women’s Working Group on FfD

The AAAA is unequivocal in its “stress that efforts in international tax cooperation should be universal in approach and scope and should fully take into account the different needs and capacities of all countries”. At the same time, there are issues on the international tax co-operation agenda that are currently not advancing rapidly enough and thus risk placing mobilization of domestic resources at risk.

These [...]

Jointly organized by Civil Society Financing for Development Group including the Women’s Working Group on Financing for Development, Femnet, Forum for Women and Democracy, Womankind Worldwide in co-operation with inter alia Society for International Development, Global Policy Forum, Brot für die Welt, MISEREOR, Christian Aid, Social Watch and many more.

 

The pursuit of the 2030 Agenda requires UN Member States to provide the necessary regulatory and financial means, including the removal of structural barriers to social, economic, and [...]

By Bodo Ellmers

In the lead-up to the UN’s Financing for Development Forum that takes place virtually from April 12-15, the 2021 edition of the Financing for Sustainable Development Report has been released. The report is published by the so-called Inter-Agency Task Force (IATF), which comprises numerous UN entities, but also the International Monetary Fund, the World Bank and the World Trade Organization. It is widely considered the most comprehensive source of data and analysis on development finance topics.

This [...]