RISING populism could be tamed if governments spend more on social services and progressive taxation can help in that regard. However, powerful vested interests are blocking international effort to reform international corporate system, says Wayne Swan, Commissioner, Independent Commission for Reform of International Corporate Taxation (ICRIC) at a forum on improving social spending at the annual meetings of the IMF/World Bank.
He believes generating public support for progressive tax is critical to improve social services as well as create the institutional measures to monitor social spending. “Nothing can be more frustrating to fight for progressive tax and have money lost to wasteful spending,” he says.
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For Winnie Byanyinma, Executive Director, Oxfam International, it is unacceptable to have 242million children out of school globally and 10,000 people die daily because they don’t have access to public health services. Putting a stop to tax dodging practices and implementing progressive tax policies will help pay for social services.
The failure of globalisation, for Ian Goldin, professor of Gobalisation, Oxford University, is reflected in the rise in excessive nationalism and populism with a high level of disdain for experts and knowledge. He calls on Policymakers to maintain a long-term outlook and avoid being captured by short-term interests.
Deborah Greenfield, Deputy Director-General of the International Labour Organisation views social spending as investments in health, education and social protection which could change hearts and help ease resistance to progressive taxes. The future of work with its attendant negative effect on low-skill workers requires a re-evaluation of the relationship between employment and business models.
For Tao Zhang, Deputy Managing Director of the IMF, what is important for the Fund is how to design social spending policies to make them country specific and sustainable.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.