By BUUMBA CHIMBULU in Maputo
THE Tax Justice Network Africa (TJNA) has called for a complete overhaul and transformation of the global financial architecture, stating that it contains rules which do not favour African countries.
According to TJNA Executive Director, Chenai Mukumba, the foundation of the system was put together by countries with their own interests and did not work for developing countries.
Ms Mukumba said this at the fourth edition of the African Conference on Debt and Development (AfCoDD IV) in Maputo.
“Within the within the global tax space some of you who have been following this conversation will note that there is work happening now to do this systemic overhaul. When they got together to think about the kind of rules that define the global tax system, put in place rules that were biased and skewed in their own favour. These are the rules that have been currently governing the current system.
“It is a foundation that was put together by countries that really were thinking and had their own interests in mind. It is a foundation that is exclusionary and really doesn’t work for developing countries.
And so if we want to see the type of transformation that’s going to realise benefits for developing countries, we need to see an entire systemic overhaul of that,” she said.
Ms Mukumba singled out the United Nations (UN) of being more participatory where African countries had a voice.
“There is a process underway to shift that that power to a space that is much more democratic, a space that is much more inclusive, a space that is much more participatory, which is the UN. Now I don’t deny that the UN in itself is more is problematic and I think there’s various power dynamics that are at play, but when you think about that platform compared to the OECD, it is a platform where every country really does have a voice.
“….can come together as groups and speak as collectives because for example at the OECD, they created what was called the inclusive framework so that more developing countries could participate,” Ms Mukumba said.
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