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Recent developments in globalization raise important issues regarding taxation policy and economic development. First, trends in capital income tax raise concerns about a possible race to the bottom or harmful competition. Second, lack of tax policy coordination results in large losses in tax revenue due to profit shifting by multinational corporations. These practices undermine revenue mobilization in the least developed countries, which also suffer from capital flight and other forms of illicit financial flows. This paper discusses how improved governance of the global financial system and enhanced harmonization in taxation policies may help address these important development problems.
The State of the Global Partnership for Development: In its latest report, the MDG Gap Task Force found much progress towards achieving the goals set under MDG 8.
Multilateral trade rules have maintained stable and predictable trade flows. Developing countries increased their participation in world markets but marked asymmetries persist; not all countries are benefitting from trade. Successive trade rounds and numerous regional trade and bilateral investment agreements led to significant loss of policy space and fragmentation. Special and differential treatment has not provided necessary flexibility for implementation of development policies while the principle of less than full reciprocity is eroded. Stronger multilateralism, effective overseeing and enforcing role by WTO and greater focus by developing countries in negotiating flexible rules (…
The role of selected policy instruments in reducing income inequality Giovanni Andrea Cornia
In this Policy Note, the CDP analyses how intergovernmental cooperation could be strengthened to better manage the increasing interdependence among countries, reduce large inequalities among and within countries and contribute to the implementation of the post-2015 sustainable development agenda, while preserving the necessary policy space for government action at the country level. The Committee proposes five main principles to guide the reforms: common but differentiated responsibilities and respective capabilities; subsidiarity; inclusiveness, transparency and accountability; coherence, and responsible sovereignty. It illustrates how these principles could be applied in reforming global…
Reducing Inequality for Sustainable Development
The 2014 World Economic and Social Survey notes that the inequality within countries has increased markedly in recent decades. The majority of the world's population lives in countr