STRENGTHENING YOUTH PARTICIPATION IN POLICY DIALOGUE PROCESSES

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1 RWANDA STUDENTS DEBATE ON TAX JUSTICE STRENGTHENING YOUTH PARTICIPATION IN POLICY DIALOGUE PROCESSES INTRODUCTION In recent years the international development community has made crucial steps to move from decisions to action on the tax justice agenda. Rwanda s long-term development goals are defined in Vision 2020, a strategy that seeks to transform the country from a low-income, agriculturebased economy to a knowledge-based, service-oriented economy with middle-income country status by In order to achieve this, the Government of Rwanda has come up with a mediumterm strategy- The second Economic Development and Poverty Reduction Strategy (EDPRS 2) which outlines its overarching goal of growth acceleration and poverty reduction through four thematic areas: economic transformation, rural development, productivity and youth employment, and accountable governance. 1 The country s development blueprint is ambitious but achievable through deliberate measures of citizen inclusion and participation. Rwanda takes cognisance of the existing economic structure of aid dependence and seek to transfigure this towards a more domestic approach for national economic transformation. Objective 3 of Vision 2020 states speaks of macroeconomic stability and wealth creation to reduce aid dependency. This, together with a fiscal consolidation strategy aiming at expanding the domestic resource base while rationalising spending, and increasing exports, is the only way to lessen aid dependence. To reduce this Rwanda in its development plan the crucial place of develop effective strategies to expand the tax base and attract foreign investors. 2 With this Vision, Rwanda distinguishes the significance of policy space in the role of economic transformation and states the requirement of a knowledge based approach. As part of objective 4 of the Rwanda Vision 2020, Section 4.2 emphasises on the place of human resource development and a knowledge-based economy as one crucial element to the achievement of Vision 2020 and seeks to ensure a proper link between education policies and sector development and labour policies. It is crucial to understand that the investment needed for the development of the secondary and tertiary sectors will not be effective without a suitably skilled labour force. 3 1 The World Bank in Rwanda, January 30, The Republic of Rwanda, Rwanda Vision 2020, Revised 2012, pg 6 3 The Republic of Rwanda, Rwanda Vision 2020, Revised 2012, pg 11

2 In light of these significant steps taken by Rwanda, we take cognisance of the country s immense natural wealth and potential. Fiscal regimes governing the productive sectors in most countries across the continent make it difficult for these countries to effectively tax the sector. In many cases companies enjoy a wide range of investment incentives coupled with asymmetric tax agreements and treaties that often favour wealthier countries, from which most multinational companies originate. This set of dynamics often hampers national exchequers from being able to effectively raise sufficient revenues which has led to Africa s overdependence on Overseas Development Assistance (ODA). In recent times there has been a growing reluctance among wealthier nations- owing to a shift in global priorities, donor lethargy and internal economic turmoil- to offer financial support to developing countries. As a result many African governments have begun to target the informal sector as a source of additional revenue. This has brought about an unbalanced mix between direct and indirect taxes, most of which tend to be regressive leading to the expansion of the chasm between the rich and the poor. As historic events such as the Panama and Paradise Papers bring the matter to the fore, an opportune moment for continued enhancement of the capacity for all stakeholders with an interest in the tax justice movement presents itself. The exposes have exposed a fractured global financial architecture that is complicit in the movement of Illicit Financial Flows (IFFs) from Africa. A study by Global Financial Integrity, Crime, corruption, tax evasion drained a record US$991.2 billion in illicit financial flows from developing countries in 2012, shows that sub-saharan Africa still suffers the largest illicit outflows as percentage of GDP. Illicit Financial Flows (IFFs) occur in a range of forms from profit-shifting, lack of transparency, financial secrecy, lack of clarity about beneficial ownership and inadequate reporting of payments in the extractives sector. RATIONALE WHY ENGAGE THE YOUTH Agenda 2063 of the African Union (AU) and the United Nations (UN) Sustainable Development Goals (SDGs) identify young people s role in Africa as vibrant and crucial. Envisioning a stable and prosperous Africa is the responsibility of young Africans, who account for more than 50% of the current African population. TJNA in partnership with Governance for Africa believe that the youths are ready to lead the continent; young voices should be heard and acknowledged, and that the youth are the custodians of African centred solutions to Africa s problems. TJNA and Governance for Africa are grounded in the understanding that only a locally generated idea that connects Africa to the global community, and one led by Africa s youth, can ensure sustainable change. The Rwanda National Debate is an opportunity for students in economics

3 and law schools in universities across the country to learn about tax justice. The debate would introduce the students to the concept of tax justice and the role they play in pushing their governments to effect progressive taxation measures as well as mechanisms to curb the outflow of resources. Despite having been previously exposed to some of the content matter on tax as part of their training, the Debate will expose them to different material, especially that of a research nature. This would go a long way in giving them a glimpse into other perspectives especially on emerging link- topics such domestic resource mobilisation and tax and investments, other options available in the job market and most of all, make them aware of the responsibilities that await them as future leaders and decision-makers on the continent s prospects. The project seeks to strengthen youth participation in tax governance in Rwanda and extending the view to the EAC region to facilitate policy dialogue for people centred development. Rwanda has a young population, which has the potential to influence policy change and good governance in the region. Promotion of youth participation in all spheres of life in society and in decisionmaking processes at all levels can benefit both young people and the decision-making bodies including national Governments. Moreover, involving young people in decision-making processes strengthens their understanding of issues at stake as well as their sense of responsibility towards being part of the solution. It is therefore important to engage young people on matters of public finance management with a focus on tax justice, especially as they come into their own as members of society able to participate in communal decision-making processes. TJNA has been at the forefront in pushing the message that IFFs can no longer be considered an African only problem, but is a global challenge that needs addressing. In the past, TJNA has worked to empower students through the International Tax Justice Academy which seeks to train academia, media and members of the CSO fraternity across Africa and beyond. However there is a need to specifically target students as the current tax curriculum does not address tax justice matters. Whereas tax is taught as part of the course- work at the tertiary level, tax justice still remains an abstract concept to many, both tutors and students, across institutions of higher learning in Africa. In November 2016, TJNA held the first East Africa Students debate on tax justice. This event served to introduce and involve the East African youth in tax justice matters. As a result one of the participants from the debate invited TJNA to Rwanda to hold a national level debate. TJNA is organising this debate in collaboration with Governance for Africa, as an opportunity for Rwandese students to learn about tax justice. The debate would introduce the students to the concept of tax justice and the role they play in pushing their governments to effect progressive

4 taxation measures as well as mechanisms to curb the outflow of resources. Despite having been previously exposed to some of the content matter on tax as part of their training, the Debate will expose them to different material, especially that of a research nature. This would go a long way in giving them a glimpse into other perspectives especially on emerging link- topics such as gender and human rights, other options available in the job market and most of all, make them aware of the responsibilities that await them as future leaders and decision-makers on the continent s prospects. Working with the students will also provide TJNA and Governance for Africa the platform to work more closely with academia providing an opportunity to influence academic curricular in East Africa. As the Panama Leaks revealed, many world leaders and unscrupulous businessmen have been indicted in the scandal, showing the rot in the international financial system. However, there is still a huge knowledge gap particularly in Africa and other parts of the developing world. In addition, there s a growing interest in the tax justice agenda, hence the need to bridge the knowledge gap in several areas of tax justice in Africa. METHODOLOGY The debate will take place from 14 to 15 February in Kigali, Rwanda at Umubano Marasa Hotel. There will be eight universities participating in the debate, with each university represented by two students. The adjudicators of the debate will come from the universities, that is, the chaperones of the different teams will act as judges and steps shall be taken to ensure that there is no bias. Adjudicators will be provided with Adjudicator guidelines and the marking sheet that will be tabled at the end of each session. Marks are awarded on a point basis. Other facts to note include: Motions which have been provided for the teams Two sets of teams will debate at the same time 9 minutes will be accorded to each team 3 minutes are provided for rebuttals for each team Teams will be penalised for taking more time There will be a time keeper who will inform teams and adjudicators of the time available thought out the active debate sessions Marks were awarded out of 100; 40 for content, 30 style(representation) 20 min strategy and 10 rebuttals It will be the role of the adjudicators to Identify the best and weakest teams

5 The debate will be conducted in English as all universities in Rwanda use English as the primary language. As there are only two days to conduct the debate, the initial day will be used to identify the semifinalists (based on points accumulated in the course of the day) who will battle it out for slots in the finals and eventually, the Winners Circle, on Day Two. The topics include: Tax incentives are an important tool for encouraging investment in Rwanda. Double taxation agreements and their implication on domestic revenue mobilisation. Taxation of the informal sector is key enhancing equality in Rwanda. There are also plans to launch the Stop the Bleeding Campaign after the debate as a way of increasing awareness about the campaign among the youth. OBJECTIVES By organising this debate, we have a number of aims we hope to achieve; these include: Train Rwandan students on taxation and tax justice. Provide a platform for Rwandan students to discuss and debate about tax justice. Increase the uptake of the Stop the Bleeding Campaign in Rwanda. Provide the best teams (universities) who will contribute much to the EAC students debate.