Tax justice must be on the agenda for the post-2015 development goals

Anything else would be dodging the problem.

As the 2015 deadline approaches for achieving the "Millennium Development Goals" – the global benchmarks for tackling poverty – questions are growing louder about how far we’ve come, and what we do next. David Cameron is to co-chair a UN High-Level Panel on this "post-2015" agenda. At conference tables, across the blogosphere and in an avalanche of reports, donors and development experts are starting to haggle over the future of aid and development.  

Cameron has set out his stall already, describing his vision of a "golden thread" of development through tackling corruption; securing rights; and shifting focus from aid to economic growth, led by business and private enterprise. Cameron’s co-chairs, Presidents Susilo Yudhoyono of Indonesia and Ellen Johnson Sirleaf of Liberia, also want to look beyond aid to unlock wealth through “economic growth, trade, tackling corruption, effective government and open societies”.

There’s no denying that a re-think is needed. The world has profoundly changed since the MDGs were conceived in the 1990s. With persistent crises in wealthy economies, global aid levels fell last year for the first time since 1997. The UK government is still rightly committed to reaching the UN agreed target of spending 0.7 per cent of national income on aid, and though it will remain vital for many years to come, it’s high time to also look for new resources to fight poverty.

At the same time, we’ve witnessed a seismic shift in the geography of economic growth and potential. It’s now clear that Asian and African economies will continue to grow far faster than in Europe and North America. The boom is far from universal, but nor is it confined to the new "big beasts" of the global economy. In the last decade some sub-Saharan African countries have experienced growth rates higher than Brazil and China – but with health, education and incomes lagging far behind in many places. 

Cameron and his co-chairs rightly acclaim the world-changing potential of this economic transformation – but the poorest citizens are yet to see its impact.  Certainly efforts to tackle poverty must draw more from developing countries’ own growth and resources, far more reliable than volatile aid flows. But the global development challenge is now neither simply to increase aid, nor just to help developing countries to attract private investment and promote growth. It is to convert the rewards of investment and growth into jobs, incomes, health and education for citizens. 

This can only happen if developing countries are able to raise their own revenue fairly, and spend it equitably. Financing the fight against poverty requires companies, investors and wealthy individuals to pay their taxes due. Yet the OECD has estimated that developing countries lose more to tax havens than they receive in aid. ActionAid estimates that just one multinational company we investigated, the FTSE100 drinks giant SABMiller, has avoided £20m a year in taxes across Africa and Asia – enough to put an extra 250,000 children in school – helped by shifting profits through a network of companies in Switzerland, Mauritius and the Netherlands. 

Most developed countries collect between 30 and 50 per cent of their GDP in tax revenue. In sub-Saharan Africa the average is just 17 per cent. How can we help bridge the gap? Aid can help. Assistance to revenue authorities in developing countries to combat tax dodging is some of the most cost-effective aid imaginable. The Rwanda Revenue Authority was set up in 1998 with the help of a £20m grant from the UK – the same amount it now collects in revenues every four weeks. Equally vital is funding to help citizens hold government spending to account, scrutinising budgets and social programmes and ensuring that they’re meeting the needs of the poorest. 

Closer to home, the IMF, UN, World Bank and OECD have all urged developed countries to make sure changes to their own tax regimes don’t damage those of developing countries. Yet the Finance Bill currently going through Parliament threatens to open up a major new loophole in the UK’s 'Controlled Foreign Companies’ rules, making it easier for multinational companies to shift profits into tax havens. ActionAid estimates this rule change is likely to cost poor countries £4bn a year, on top of nearly £1bn to the UK’s public finances annually. This flies in the face of the need to support developing countries’ efforts to become dependent of aid.

And at a global level, the fight against international tax avoidance has slipped steadily down the agenda of the G8 and the G20 over the last 18 months, despite its potential to stabilise public finances in the developing and the developed world alike. The "post-2015" re-think is an opportunity to put it back on the agenda. At stake is the future of the fight against poverty. 

High life - but at what cost? SABMiller has avoided tax across Africa. Photograph: Getty Images

Mike Lewis is a tax justice campaigner at ActionAid

Getty
Show Hide image

"We repealed, then forgot": the long shadow of Section 28 homophobia

Why are deeply conservative views about the "promotion" of homosexuality still being reiterated to Scottish school pupils? 

Grim stories of LGBTI children being bullied in school are all too common. But one which emerged over the weekend garnered particular attention - because of the echoes of the infamous Section 28, nearly two decades after it was scrapped.

A 16-year-old pupil of a West Lothian school, who does not wish to be named, told Pink News that staff asked him to remove his small rainbow pride badge because, though they had "no problem" with his sexuality, it was not appropriate to "promote it" in school. It's a blast from the past - the rules against "promoting" homosexuality were repealed in 2000 in Scotland, but the long legacy of Section 28 seems hard to shake off. 

The local authority responsible said in a statement that non-school related badges are not permitted on uniforms, and says it is "committed to equal rights for LGBT people". 

The small badge depicted a rainbow-striped heart, which the pupil said he had brought back from the Edinburgh Pride march the previous weekend. He reportedly "no longer feels comfortable going to school", and said homophobia from staff members felt "much more scar[y] than when I encountered the same from other pupils". 

At a time when four Scottish party leaders are gay, and the new Westminster parliament included a record number of LGBTQ MPs, the political world is making progress in promoting equality. But education, it seems, has not kept up. According to research from LGBT rights campaigners Stonewall, 40 per cent of LGBT pupils across the UK reported being taught nothing about LGBT issues at school. Among trans students, 44 per cent said school staff didn’t know what "trans" even means.

The need for teacher training and curriculum reform is at the top of campaigners' agendas. "We're disappointed but not surprised by this example," says Jordan Daly, the co-founder of Time for Inclusive Education [TIE]. His grassroots campaign focuses on making politicians and wider society aware of the reality LGBTI school students in Scotland face. "We're in schools on a monthly basis, so we know this is by no means an isolated incident." 

Studies have repeatedly shown a startling level of self-harm and mental illness reported by LGBTI school students. Trans students are particularly at risk. In 2015, Daly and colleagues began a tour of schools. Shocking stories included one in which a teacher singled out a trans pupils for ridicule in front of the class. More commonly, though, staff told them the same story: we just don't know what we're allowed to say about gay relationships. 

This is the point, according to Daly - retraining, or rather the lack of it. For some of those teachers trained during the 1980s and 1990s, when Section 28 prevented local authorities from "promoting homosexuality", confusion still reigns about what they can and cannot teach - or even mention in front of their pupils. 

The infamous clause was specific in its homophobia: the "acceptability of homosexuality as a pretended family relationship" could not be mentioned in schools. But it's been 17 years since the clause was repealed in Scotland - indeed, it was one of the very first acts of the new Scottish Parliament (the rest of the UK followed suit three years later). Why are we still hearing this archaic language? 

"We repealed, we clapped and cheered, and then we just forgot," Daly says. After the bitter campaign in Scotland, in which an alliance of churches led by millionaire businessman Brian Souter poured money into "Keeping the Clause", the government was pleased with its victory, which seemed to establish Holyrood as a progressive political space early on in the life of the parliament. But without updating the curriculum or retraining teaching staff, Daly argues, it left a "massive vacuum" of uncertainty. 

The Stonewall research suggests a similar confusion is likely across the UK. Daly doesn't believe the situation in Scotland is notably worse than in England, and disputes the oft-cited allegation that the issue is somehow worse in Scotland's denominational schools. Homophobia may be "wrapped up in the language of religious belief" in certain schools, he says, but it's "just as much of a problem elsewhere. The TIE campaign doesn't have different strategies for different schools." 

After initial disappointments - their thousands-strong petition to change the curriculum was thrown out by parliament in 2016 - the campaign has won the support of leaders such as Nicola Sturgeon and Kezia Dugdale, and recently, the backing of a majority of MSPs. The Scottish government has set up a working group, and promised a national strategy. 

But for Daly, who himself struggled at a young age with his sexuality and society's failure to accept it, the matter remains an urgent one.  At just 21, he can reel off countless painful stories of young LGBTI students - some of which end in tragedy. One of the saddest elements of the story from St Kentigern's is that the pupil claimed his school was the safest place he had to express his identity, because he was not out at home. Perhaps for a gay pupil in ten years time, that will be a guarantee. 

0800 7318496