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TRANSCRIPT
The ground rule for the new SDG and the Past MDG
• The sustainable development goals (SDGs) are a new, universal set of
goals, targets and indicators that UN member states will be expected to
use to frame their agendas and political policies over the next 15 years.
• The SDGs follow and expand on the millennium development goals
(MDGs), which were agreed by governments in 2001 and are due to
expire at the end of this year.
Why we need SDG???
• The MDG goals made no mention of human rights and did not
specifically address economic development. While the MDGs, in
theory, applied to all countries, in reality they were considered targets
for poor countries to achieve, with finance from wealthy states.
Conversely, every country will be expected to work towards achieving
the SDGs.
• The sustainable development goals (SDG) are a reflection of the situation
in the world today. According to Jan Eliasson, the SDG reflect that the
world need peace, development and human rights. The year 2015 offers a
unique opportunity for global leaders and people to end poverty and to
transform the world to better meet human needs and the necessities of
economic transformation, while protecting our environment, ensuring
peace and realizing human rights.
What we need to accomplish the SDG???
• In order to accomplish the SDG we need International perspectives as
well as regional, national and local perspectives. These goals are many
and complex than the MDGs.
What are the sources of finance for SDG?
• We have to go from billion to trillions. Trillions of will be needed
every year. “We need to radically rethink how we unlock resources
and connect the billions of dollars in official development assistance
(ODA) to trillions in investment of all kinds, public and private,
national and global.”
• The global community provides roughly $135 billion a year in official
development assistance, according to the Organisation for Economic
Co-operation and Development (OECD). But the SDGs are ambitious,
and the cost of achieving them will far exceed current development
funding.
• The largest potential sources of finance for development come from
countries themselves and private investors. International financial
institutions such as the World Bank Group can help countries get the
money they need for development through better tax policies, more
efficient public spending, and private investment.
The time of SDG
• The SDGs will be officially adopted at a UN summit in New York in
September, and will become applicable from January 2016. The
deadline for the SDGS is 2030.
Implementation of SDG
• Implementation and realization of the goals is crucial at the
international, nation al and local levels.
Domestic Resource Mobilization
• Domestic Resource Mobilization is the most resource available to implement the SDG
• Domestic Resource Mobilization (DRM) — the process in which countries
transparently raise and spend their own funds to provide for their people – is the long-
term path to sustainable development finance. DRM doesn’t have to mean new taxes
or higher tax rates — governments often see their revenues rise through improved
audits or simplified filing processes. Improvements in tax compliance and revenues
can, and often do, enable countries to lower tax rates.
• The growth and scale of domestic resources in the developing world are
impressive; for example, total domestic sources of revenue grew in the 54
Sub-Saharan African countries from $100 billion in 2000 to nearly $513
billion in 2011 according to the African Economic Outlook.
• Contrast that with the growth of ODA during the same period, which
went from $20 billion in 2000 to approximately $60 billion in 2011.
Tax Administration System for Effective Domestic Resource Mobilization
• How a tax system is administered affects its yield, its incidence, and its efficiency.
• Three ingredients are essential to effective tax administration: political will, a clear
strategy, and adequate resources.
• Administration that is unfair and capricious may bring the tax system into disrepute
and weaken the legitimacy of government.
• The three major tasks of an effective tax administration are facilitating
compliance by ensuring that individuals obligated to pay taxes are doing
so and to try and make compliance easier for the taxpayer; enforcing
compliance and reducing tax evasion; and improving governance to keep
tax officials honest and reinforce the legitimacy of the tax system.
• Facilitating compliance• The first task of any tax administration is to facilitate compliance: ensure that those who
should be in the system are in the system, and that they comply with the rules.
• Enforcing compliance• To enforce compliance and reduce evasion, the administration needs to understand the extent
and nature of the potential tax base to estimate the tax gap, preferably by sector and type.
• Improving governance• The task of the tax administration is not to assess who owes what, but instead to guard the
“borders” of the system and verify that those who should be self-assessing are behaving responsibly.
Reference
• From Billions to Trillions: Transforming Development Finance, WBG joint with IMF and MDBs, 2015. Pages 7-12 • Domestic Resource Mobilization, USAID, 2015 (read webpage
introduction and 2-page El Salvador case study)• Financing the future: Why domestic revenue mobilization belongs on
the post-2015 agenda. Devex, 2014 (OpEd, 1 page)• Smart Tax Administration, WBG, Economic Premise, 2010 (Briefing
Note, 5 pages