Ayuda externa como promotor de la movilización de recursos internos XXIV SEMINARIO REGIONAL DE POLÍTICA FISCAL CEPAL, Naciones Unidas Santiago de Chile, 24 al 26 de enero de 2012 Hans Wollny BMZ, Depto. 203 25 de enero de 2012
Trends in domestic resource mobilization (Source: IMF, Revenue Mobilization in Developing Countries, 28/01/2011) OCDE: 35%! Mainly not progressive, but regressive tax systems! Tax evasion and tax avoidance several times annual ODA worldwide! World Bank 1990 for Latin America: "Raising all the poor in the continent to just above the poverty line would cost only 0.7 percent of regional GDP - the approximate equivalent of a 2 percent income tax on the wealthiest fifth of the population."
Domestic Resource Mobilization: a top priority of the int'l development agenda UN: Financing for Development Conferences (2002, 2008), World Financial & Economic Crisis Conference (06/2009), MDG Summit (09/2010), LDC Conference (05/2011), current discussion on strengthening int'l cooperation in tax matters OECD: Paris Declaration (2005), Accra Agenda for Action (2008), Informal Task Force on Tax & Development (01/2010), Joint DAC/CFA Programme on Tax & Development (01/2011), Busan Partnership for Effective Development Cooperation (29/11-01/12/2011), DevGoals Exercise (01/2012) G-8: Action Plan for Good Financial Governance in Africa (2007), Joint G-8/Africa Declaration (05/2011) G-20: Fight against tax havens (since 11/2008), Multi-Year Action Plan on Development (11/2010) EU: EC Communication (04/2010) and Council Conclusions (06/2010) on Tax & Development IMF: Topical Trust Fund on Tax Policy and Administration (12/2010)
What is the ITC all about? ITC is an informal forum of bi- and multilateral development partners for dialogue and action promoting, on the int'l and domestic level, tax systems that strengthen the ability of developing countries to be more effective at fighting tax evasion and inappropriate tax practices in order to deliver nat'l and int'l development goals ITC will work on a partnership basis add value to existing int'l efforts without duplicating other ongoing initiatives
ITC history Berlin Workshop 03/2009 13 partner countries, 4 int'l organizations Brussels Workshop 01/2010 24 partner countries, 9 int'l organizations Brussels Core Group Meetings 04/2010, 02/2011 ATAF, CIAT, EC, IMF, OECD, UN France, Germany, Netherlands, Norway (04/2010), Spain, Switzerland Bonn Workshop 09/2011 33 partner countries, 8 int'l organizations ITC Secretariat Headquarters at Bonn, 5 professionals BMZ seed financing 2009-2013: 5.5m EUR Open for cooperation arrangements
ITC work areas and activities At the country and regional levels Support for ATAF and CIAT Support for tax reforms in developing countries Support for South-South cooperation At the international level Support for UNDESA (e.g. in Transfer Pricing issues) Support for OECD Informal Task Force on Tax & Development Secondments to EC (since 10/2009) Analytical work and studies Mapping Survey (05/2010), follow-up with OECD and ITD GTZ/FiFo: "Addressing Tax Evasion and Tax Avoidance" (12/2010) DIE: "Assessing Tax Performance of Developing Countries (01/2011) ITC: "Taxation in PEFA Assessments" (02/2011) ITC/EC: "Transfer Pricing and Developing Countries" (06/2011) KfW and OECD: "Appropriate Aid Modalities" (09/2011) TJN support (e.g. country studies, round table initiatives) Networking and dialogue ITC events, participation in conferences, IMF cooperation
ITC Workshop recommendations 09/2011 DRM should accompany int'l efforts for raising ODA Enhancing tax revenues is not an end in itself: "We will undertake these efforts with an overarching view to make tax systems more pro-poor" (Doha 2008) Strengthening the political dialogue! DRM support must be delivered under government leadership, respecting the 2005 Paris Declaration principles Donors must further strengthen coordination and harmonization More realistic assessments, taking into account the political economy of tax reforms, capacity constraints and country needs! Monitoring of results by jointly developed indicators, diagnostic reviews and assessments DRM should become an integral component of all PFM support and be closely linked with expenditure planning Balanced approach between direct and indirect taxation, taking into account potential of personal income and real estate taxation! Use of regional & subregional organizations' experience, South- South sharing of successful tax practices! Effective fight against tax evasion, illegal financial flows and corruption
Thank you very much! Hans Wollny Deputy Head of Division Division 203 - Governance, Democracy, Rule of Law Federal Ministry for Economic Cooperation and Development (BMZ) Dahlmannstr. 4, D-53113 Bonn, Germany Tel.: + 49-228-99-535-3236 Fax: + 49-228-99-10535-3236 hans.wollny@bmz.bund.de referat203@bmz.bund.de http://www.bmz.de