Developing countries continue to suffer from aggressive tax planning from multinational companies while they struggle to mobilise much needed domestic resources to finance basic services.
Tax and domestic resource mobilisation have been a central part of the discussions towards the 3rd financing for development conference in Addis Ababe in July 2015 and is included as a specific indicator in the new Sustainable Development Goals. Fiscal policy is also increasingly being recognised as part and parcel of State’s responsibility to realise human rights. Harmful tax practices jeopardize this.
Meanwhile, the private sector and our ability to leverage funds for development from the private sector have also taken central place in the new development framework. Here development finance institutions – multilateral and bilateral – have a key role. Given the clear political focus on raising more domestic resources and fight aggressive tax planning in in the new development framework Development Finance Institutions (DFIs), as public institutions financed by tax payers money, should be expected to be at the forefront with safeguards and policies to ensure responsible tax policies and practice from their partners in the private sector and their projects. But are they fit for purpose?
This discussion panel co-organised by IBIS and Latindadd will approach the potential role for multilateral DFIs as agents for change in promoting more responsible tax policy and practices. It will serve as a first step in a substantive dialogue between civil society organisations and regional DFIs on how to ensure more domestic resource mobilisation for development.
When and where: 7th October 2015 from 11-12.30 at the World Bank/IMF civil society policy forum, Lima, Peru.