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Tax Justice Network Africa (TJNA) Executive Director Chenai Mukumba has supported calls for the overhaul of the international financial system, saying it is no longer fit for purpose.
Speaking as a key respondent during the High-Level Dialogue on Financing for Development at the 78th Session of the United Nations General Assembly (UNGA), Ms Mukumba noted that there was an urgent need for an intergovernmental forum on tax cooperation where all member states are able to participate on an equal footing.
“The current system as we know it was established in the 1920s and 1930s in the League of Nations before many Global South countries were in existence. For the longest time, the OECD has led the development of the international tax system without the effective participation of Global South states.” Ms Mukumba added.
Ms Mukumba recalled that the global south countries began pushing for reform of the international architecture as early as the 1940s and this push did not receive support from the countries that had established it.
She urged member states to adopt the proposal for a framework convention on international tax cooperation as it has the most potential to change the status quo for developing countries. She lauded the spirited efforts by the African Group that culminated in the adoption by consensus of the African Group resolution on the promotion of inclusive and effective international tax cooperation.
“The importance of reform of the global tax system is that while countries have a sovereign right to collect taxes, illicit financial flows through tax evasion and avoidance prevent the effective exercise of this right. Therefore, an ineffective international tax system limits the sovereign rights of our states,” she noted.
The dialogue was a platform for UN Member States and other stakeholders to reinvigorate international commitment to the Addis Agenda, which supports implementation of the 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs).
It brought together Heads of State and Government and other senior officials, representatives of the private sector and civil society, international financial institutions, including multilateral development banks, academia and other relevant actors.
For more information on our work on the international financial architecture, please contact Francis Kairu at fkairu(@)taxjusticeafrica.net.