All talk: The High-level Dialogue on Financing for Development offers business-as-usual narrative: Page 2 of 2
group member, said in a statement that “bold reforms to democratize global economic governance and realign the financial system” are necessary for climate justice and sustainable development.
The group called for institutional reforms for the multilateral system and economic governance, among them a global debt workout mechanism, a UN intergovernmental tax commission and a global technology assessment mechanism. It also highlighted the normative role of the UN in global policy-making to ensure coherence, pointing out that “the narrative on blended finance and public-private partnerships (PPPs) is inconsistent with the Addis Ababa Action Agenda commitment to developing principles and standards to safeguard the public interest”.
For development to be truly democratic, it must belong to the people. It requires social movements to challenge and shift existing power relations, collectively address inequities and advance economic, social and climate justice. IBON International puts forward the following recommendations on financing for development:
- Domestic finance should be primary and oriented to reducing inequalities (progressive taxation; reversing current neoliberal policy of tax incentives to “attract” foreign direct investment; curbing illicit financial flows from transfer pricing schemes along production chains; tariffs as a revenue source)
- Developed countries must fulfil financing and development cooperation commitments (fulfil the historical commitment of ODA equivalent to 0.7% of GNI; preserve integrity of ODA as resource for reducing poverty and inequalities; adhere to development effectiveness principles)
- Move away from the dominant international private finance narrative (go beyond “infrastructure gap” and “billions to trillions” narrative of MDBs; bring people and their rights, especially women's rights, back into the conversation)
- The “private sector” must be nuanced (hold big business to stricter domestic rules; support MSMEs towards developing national productive capacities; implement regulatory and redistributive measures)
- People’s sovereignty means decision-making power (reverse shrinking civic space; democratise development) ###