I have been positively surprised by Bertrand Vincent’s well-structured and thorough analysis; many points of which I fully share. Inter alia, it is relevant bringing into the debate the taxation issue and its redistribution function, underpinning the equity dimension of development. Yet, I think that something important is really missing. It is truth that in developing countries “the population is insolvent” but the fact that “taxation is almost non-existent” is about a more complex issue. To me, there is a huge issue of governance. In several developing countries, e.g. multinational companies are paying too little contribution to equity dimension of development as they do pay dramatically low taxes if any. So, along with population’s insolvency we assist at population’s disempowerment.
To add my contribution to the debate, I will probably repeat what is already known but there is always need to come back to the fundamentals.
1. Whatever the ideas, models and schemes of funding, innovative or traditional, there is a huge need for progressing in governance, rule of law and people’s empowerment. Whatever the level, from micro-project up to policies, these elements have to be included and budgeted. The FAO new strategy, envisaging the right to food, opens an appropriate frame yet we assist to a cultural deficit at institutional level as well as at the level of the staff used to more “technical” / vertical solutions.
2. Along the dual path of economic efficiency and social equity, aims related to equity and goals related to efficiency pose typical trade-offs, depending on the prevailing paradigm. The current hegemony of the “neo-liberal” model is not much helpful. In fact, the Washington Consensus provides the background for the primacy of cost-effectiveness and efficiency when designing policies. In this context, looking for innovative financing, surveillance is needed to avoid surrogate solutions in alternative to social-equity based on public policies.
3. Policy making, including taxation, is subject to “political bargaining”. This is particularly relevant when considering that the food insecure are in many ways politically weak. Though in great numbers, they usually are voiceless and lack political capabilities. At local / community level it does not work out much better. Inequality does not stop at communities’ gates. Therefore, our efforts always have to organically include the governance dimension, the rule of law and people’s empowerment.
Emilia Venetsanou
Freelancer, Development practitioner
Sra. Emilia Venetsanou