Presentation on theme: "Debt and Development Coalition Ireland ICTU Global Solidarity Summer School."— Presentation transcript:
Debt and Development Coalition Ireland ICTU Global Solidarity Summer School
National network Solidarity based with activists and social movements in the Global South Focus on financial exploitation of the Global South: South-North resource flows Debt, role of international financial institutions (World Bank; IMF) and tax justice
Pre- existing poverty levels – not on target to meet MDGs External Debt $3 trillion ($100m payments per day) Financial crisis: reduction in remittances (Kenya: 5% GDP, fall in ‘08 by 33%); growing unemployment (up by at least 40m in ‘09 GS); $2 trillion financial shortfall in Global South; 30% drop in exports.
Food Crisis: FAO: 100m more people in chronic hunger in Climate crisis: Approx 26 million people displaced already; 375 million people may be affected by climate disasters by 2015; 200 million people may be displaced each year by 2050; major cities dependent on water from mountain ranges face collapse A new debt crisis: Countries such as Zambia already facing unsustainable debts
‘Tax Consensus’ – tax competition as approach to national ec devmt and corporate business models Low tax regimes by govmt & ‘tax minimisation’ Strongly supported by World Bank and IMF in Global South Increasing role of tax havens: $7 trillion stashed in tax havens
At least $160 billion every year lost to Southern countries due to tax evasion. Significantly greater than all the aid received by South from North. $160 Bn Could save 350,000 children’s lives
Transfer pricing – companies exaggerate costs and minimise profits 60% of international trade takes place within TNCs Profits are transferred to holding companies based in tax havens
Allow non-residents to open bank accounts No disclosure of information to other countries Cayman Islands – 5 th largest banking centre - $2 trillion Also Switzerland, Isle of Man, Jersey – and Ireland
Strong tax base essential if countries are to build stronger democratic states: Rltns bwtn gvmt & citizens, and real exit strategies from aid dependency. Direct taxation and corporate taxation NB.
Banks and hedge funds engaging in risky practices used tax havens. Losses and liabilities hidden off balance sheet G20 / Obama raising questions about tax havens; OECD ‘concern’; race to sign info exchange agreements
End to banking secrecy – automatic exchange of information Control over accountancy firms – end to self- regulation Country-by-country reporting for TNCs
Debt and Development Coalition Ireland & wider tax justice network We need trade union support in Ireland! ;