Strive for inclusive participation, pro-poor sustainable development financing strategy: Page 2 of 2
Posted on 1 September 2013
encouraging domestic resource mobilization (DRM) rather than reliance on external financing such as aid and foreign investments. Overdependence on foreign investments has resulted in massive loss of government revenue due to excessive tax incentives, profit and capital repatriation, and financial speculation. Official development assistance (ODA) on the other hand has been falling and is expected to stagnate.
DRM especially in the form of taxation has great potential in raising the needed funds for development goals. Examples are effectively taxing extractive industries like mining and logging, as well as establishing tax regimes to penalize polluting industries. Such taxation schemes serve not only as revenue generators but also as regulatory tools for developing country governments to promote sustainable development.
Promoting DRM, however, should not be an excuse for developed countries to forsake their historical responsibility for today’s unsustainable production, consumption and extraction patterns. Thus there is a need to reverse ODA’s decline as it remains an important source of public financing. Likewise, climate finance and other forms of development financing must be scaled up based on common but differentiated responsibilities.
As the Committee organizes its work for the coming months, IBON calls on it to take immediate steps to ensure that the consultations and deliberations allow multi-stakeholder participation and input. IBON recommends that subsequent sessions as well as the conduct of the Committee’s work in between be carried out in open, inclusive and dynamic engagement with civil society and that timely information is made available to the public.
*IBON International engages in capacity development for human rights and democracy around the world. It strengthens links between local campaigns and advocacies to international initiatives and brings development issues from the international arena in a way that peoples’ organizations and social movements can engage with at country level.