Even it up campaign Catherine Olier Nairobi- 2 nd December 2014
Page 2 INEQUALITY IN AFRICA Growth but for whom? WAF fastest pace of growth expansion in the continent, above 7%. Sierra Leone: 16.3 % growth rate in 2013 High level of inequality Africa: 2nd most unequal region after LAC 16 billionaires in sub-Saharan Africa million people living in extreme poverty
Page 3 WHY DO WE CARE? It affects efforts on poverty reduction It reinforces other types of inequality It affects people’s lives
Page 4 WHAT CAUSES INEQUALITY? ‘Market fundamentalism’ ‘Political capture’
Page 5 WHAT SOLUTIONS? Public services Fair taxation Minimum wages and decent work Active citizenship Social protection
Page 6 EVENT IT UP CAMPAIGN OBJECTIVES Help to mobilise millions of people across the world to create a movement for change Shift the terms of the debate to end ‘market fundamentalism’ (public services, gender, political capture) Obtain policy changes (taxation) 5 years About 25 countries and growing
Page 7 GETTING TAX RULES THAT REDUCE INEQUALITY Ensure progressive taxation reforms are introduced so that everyone pays according to its means and no one is allowed to escape taxation & essential services are prioritised when allocating resources. FISCAL JUSTICE
Page 8 CONCRETE ACTIVITIES 1.Studies to show the scale of the inequality problem and its drivers 2.Advocacy towards key decision-makers at local, national, regional and international levels 3.Raising awareness and mobilising people for active citizenship 4.Media to put taxation in the public debate and change perception 5.Offline and online products (for social media, petitions, videos etc…)
Page 9 AT GLOBAL LEVEL: A WORLD TAX SUMMIT versus NOW: Base Erosion and Profit Shifting reform (OECD/G20) 34 to 44 countries only including tax havens Strong influence by the business No equal representation for developing countries JULY 2015: World Tax Summit (in margin of the FFD conference in Addis) to o acknowledge tax dodging by MNCs not entirely solved with BEPS o re-open the tax debate for a more visionary and fair design; o create in the future a global tax body to negotiate global tax rules in an inclusive and transparent way.
Page 10 AT REGIONAL LEVEL: MORE COORDINATION TO AVOID RACE TO THE BOTTOM 1.Tax harmonisation and race to the bottom (UEMOA, ECOWAS, SADC, EAC) 2.Illicit Financial Flows (AU, NEPAD…)
Page 11 AT NATIONAL LEVEL: PROGRESSIVE TAXATION Promote redistributive policies and practices that redistribute revenues (tackling inequality once) and increase funding for essential, free public services (tackling inequality twice) Examples: progressive fiscal reforms, streamlining tax exemptions, especially in the extractive industries sector, combat harmful practices, look at IMF tax advises in countries
Page 12 AT NATIONAL LEVEL: PROGRESSIVE TAXATION NIGER follow-up of Areva case + study on drivers of inequality KENYA Citizens’ awareness raising and training on governance and budget NIGERIA Platform of NGOs on fair taxation, reducing tax burden of women in informal economy, study on drivers of inequality BRAZIL Campaign for political and tax reforms and look at Brazil’s role in international context (G20, BRICS, post- 2015
Page 13 “… The people have been left behind for too long, a fact that has already sparked popular protests and outrage around the world. Outrage that elected governments are representing the interests of the powerful few, and neglecting their responsibility to ensure a decent future for everyone. Outrage that corporate giants are able to dodge their taxes and get away with paying poverty wages. Many of you will wonder whether there is anything we can do to change this? The answer is very firmly yes...” WINNIE BYANYIMA Executive Director, Oxfam
THANK YOU Catherine Olier Mai / Juin 2014