The role of fiscal policies for sustainability

LJD

By Karen B. Brown, Theodore Rinehart Professor of Business Law, George Washington University Law School


This blog is part of a special series exploring subjects at the core of the Human-Centred Business Model (HCBM). The HCMB seeks to develop an innovative – human-centred – business model
based on a common, holistic and integrated set of economic, social, environmental and ethical rights-based principles. Read more about the HCBM here, and check out an event about it here
The HCBM project originated in 2015 within the World Bank’s Global Forum on Law, Justice and Development and is now based at the OECD’s Development Centre.

development-financeSustainable enterprises seek to marry models for good business practices with principles of economic, social and environmental sustainability, many of which are founded on the United Nations Sustainable Development Goals (SDGs). These objectives aim to advance human rights, fair wages, healthier and safer working conditions, gender equality, child welfare, environmental protections, and ethical behavior designed to impede corruption, money laundering and tax evasion. The failure to achieve these objectives imposes considerable costs on governments: diminished productivity and quality of life for their constituents, inefficiency in the operation of markets, and reduced economic growth. An important step towards achieving sustainability goals may come through a government’s use of incentives in the fiscal regime.

Governments traditionally use their tax codes to make “tax expenditures” designed to achieve objectives that advance important policy goals or principles. For example, a government may provide a departure from normal tax rules by reducing the capital gains tax and deferring the time for when gains must be reported if a taxpayer invests in certain qualified opportunity zones that are designated low-income communities. In other words, the government is willing to forego the capital gains tax revenue it would otherwise collect in exchange for investment intended to stimulate economic growth in areas where underserved constituents reside. Other examples abound of using tax expenditures to achieve legitimate governmental ends. Consider the following three ways — substantive tax provisions, tax rate reductions and “bright listing ”– that use incentives to encourage the integration of human-centred goals into business practices: Continue reading

SMEs and SDGs: challenges and opportunities

LJD

By Dr Teodorina Lessidrenska, Consultant, World Bank


This blog is part of a special series exploring subjects at the core of the Human-Centred Business Model (HCBM). The HCMB seeks to develop an innovative – human-centred – business model
based on a common, holistic and integrated set of economic, social, environmental and ethical rights-based principles. Read more about the HCBM here, and check out an event about it here
The HCBM project originated in 2015 within the World Bank’s Global Forum on Law, Justice and Development and is now based at the OECD’s Development Centre.

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Women selling eggs in Kigali, Rwanda

Recent studies show that small and medium enterprises (SMEs) account for an overwhelming majority of private sector business and economic activity in both developed and developing countries. Given the role of micro-, small- and medium-sized enterprises (MSMEs)1 in the global economy, it is essential to understand their importance and potential contribution to the Sustainable Development Goals (SDGs)2. 

According to the World Bank3 and the OECD4, multiple reasons explain why MSME development is critical for achieving the SDGs:

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Creating value and doing good: Governance solutions for sustainable enterprises

LJD

By Professor Andrea Zorzi, University of Florence


This blog is part of a special series exploring subjects at the core of the Human-Centred Business Model (HCBM). The HCMB seeks to develop an innovative – human-centred – business model
based on a common, holistic and integrated set of economic, social, environmental and ethical rights-based principles. Read more about the HCBM here, and check out an event about it here
The HCBM project originated in 2015 within the World Bank’s Global Forum on Law, Justice and Development and is now based at the OECD’s Development Centre.

BWO_038

Charitable institutions are an established concept. So is the concept of cooperatives that advance some social goals through business activities. What is relatively new, however, are two related ideas: one is the idea that the pursuit of social goals is the business itself, and the other that the business pursuit of social goals does not mean giving up profits.

In the past decade, many initiatives burgeoned to give legal form to social business. It was necessary before to adapt the legal structures of for-profit companies to not-only-for-profit goals. Adapted standards, however, may not always be effective or may expose entities to legal risks. Now, many jurisdictions provide legal forms for ‘social enterprises’, which are generally expected to pursue only ‘social, environmental or community objectives’, rather than both for- and not-for-profit goals and to reinvest most of their profits.[1] The most important difference between social enterprises and other non-profits is that social goals are pursued by carrying out the business rather than giving out money, goods and services to the needy.
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The Future of Development Co-operation: Not the end, just the beginning of a new era?

DEV-IN-TRANS-BANNER

By Andy Sumner, King’s College London


This blog is part of an ongoing series evaluating various facets
of 
Development in Transition
The 2019 Perspectives on Global Development
on 
Rethinking Development Strategies adds to this discussion


immigration-integrationYesterday’s blog listed five areas of change related to global poverty and economic development in developing countries. What do these changes mean for development co-operation?

First, development co-operation needs to adapt to the new polarisation within the developing world. More precisely, the old model of supporting ‘stuck’ and ‘ODA-dependent’ developing countries needs to be complemented with a new model of collaborating with ‘moving’ and ‘post-ODA’ developing countries.

Second, development co-operation to support expanding social welfare regimes and social protection systems focused particularly on children is important to disrupt the inter-generational transmission of poverty, especially given that under 18-year olds make up half of global poverty.

Over 100 developing countries have already established cash transfer schemes, which indicates that these systems are already being built, and systematic reviews concur on poverty reduction impacts. A global knowledge bank on building social welfare and social protection systems is thus one potential area for post-ODA development co-operation. Continue reading

5 facts about global poverty that may surprise you

DEV-IN-TRANS-BANNER

By Andy Sumner, King’s College London


This blog is part of an ongoing series evaluating various facets
of 
Development in Transition
The 2019 Perspectives on Global Development
on 
Rethinking Development Strategies adds to this discussion


poverty-DiT-facts

This blog is the first of two. Part one outlines five facts about global poverty and economic development in the developing world and discusses how the nature of development is changing. Part two, which will post tomorrow, will consider the implications of these changes for future development co-operation.

Fact 1. A new polarisation is emerging in the developing world. A new polarisation is emerging within the developing world between ‘moving’ and ‘stuck’ countries, as well as between ‘high-ODA’ and ‘post-ODA’ countries. Continue reading

Social protection systems that work for women’s rights

Sigi-banner-for-blogBy Shahra Razavi, Chief of Research and Data, UN Women


This blog is part of a special series marking the intersection between
the 2019 Social Institutions and Gender Index (SIGI),
the
2019 SIGI Global Report and work on Social Protection


Social-protection-women-cashGender-responsive social protection systems have been very effective in mitigating the inequalities generated by markets. Take the case of work-related benefits, such as maternity and parental leave and sickness and unemployment benefits. Thanks to these transfers, the gender gap in disposable incomes in a range of high- and middle-income countries becomes much smaller than the gap in market incomes, while affordable childcare services have been pivotal in giving women, especially mothers, a foothold in the labour market.

Globally, however, only 41% of mothers with newborns receive a maternity benefit, with coverage rates as low as 16% in Africa. Widespread labour market informality is at the root of this exclusion. Yet, in Chile, Costa Rica and South Africa, social insurance-based leave schemes have been extended to cover informal wage workers, such as domestic workers and seasonal agricultural labourers. Mongolia provides an interesting combination of contributory and non-contributory benefits, including maternity cash benefits to all pregnant women and mothers of infants regardless of their contribution to the social insurance scheme, employment status or nationality. In recent decades, child- and family-related allowances have also gained traction in developing countries. Their aim is to offset some of the costs of raising children while promoting basic income security and investing in children’s capabilities. Such schemes mostly target mothers on the premise that women are more likely than men to prioritise child-oriented spending.

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Gender and social protection: fighting for equality and against poverty

Sigi-banner-for-blog

By Liévin Feliho, Chief Executive Officer, SOLIHO; Former Government Commissioner at the Ministry of Social Affairs and Health in France  


This blog is part of a special series marking the intersection between
the 2019 Social Institutions and Gender Index (SIGI),
the
2019 SIGI Global Report and work on Social Protection


Social-protection-women-poverty

According to the International Labor Organization (ILO)1, only a minority of the world’s inhabitants (45.2%) enjoy at least one social protection benefit today. If this protection amounts to 84.1% in Europe, it is in Africa that the situation is most worrying with only 17.8% of the population covered. It is difficult to have a fair assessment of women’s coverage level since most of the available and disaggregated data only concern benefits provided to mothers with newborns.2 Evidence points to the fact that, regarding social protection also, women are structural victims.

The Protection and Affordable Care Act (‘Obamacare’) promulgated on March 23, 2010 by President Barack Obama and the 2011 report on the Social Protection Floor for a Fair and Inclusive Globalization by the advisory group chaired by Michelle Bachelet, set by ILO with the collaboration of the WHO, have increased awareness around the concept of social protection. After the economic and financial crisis of 2008, these initiatives allowed policy makers from poor countries to more freely defend the idea of institutional solidarity. Indeed, Africans had prioritised social protection since at least the early 2000s3 but poor governance and the conflicting requirements of donors in budgetary matters have failed to bring to fruition their ambitions in the area of social protection and health. So, what does this specifically mean for African women and social protection? Three considerations follow:

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