Task Force on Financial Integrity and Economic Development » Conference

Combattre le système financier souterrain : un plan de travail pour le G20

Task Force — Fri, 30 Sep 2011 16:52:27 +0000

Combattre le système financier souterrain : un plan de travail pour le G20

Conférence annuelle de la « Task Force on Financial Integrity and Economic Development »

Jeudi 6 et vendredi 7 octobre 2011

Cercle National des Armées
8, place Saint Augustin – 75008 PARIS

PARIS – La conférence annuelle de la « Task Force on Financial Integrity and Economic Development » ¹ se déroulera au Cercle National des Armées, à Paris, les 6 et 7 octobre prochains. En amont du G20 de Cannes, les participants analyseront les conséquences du système financier souterrain et présenteront les solutions à mettre en œuvre pour enrayer les flux financiers illicites. Les différentes sessions auront notamment pour thème le reporting pays par pays, l’identification des bénéficiaires réels des comptes, l’échange automatique d’informations fiscales, le lien entre blanchiment d’argent et évasion fiscale …

Avec la participation notamment de : Jeffrey D. Sachs (The Earth Institute), Jon Lomoy (Organisation de coopération et de développement économiques), Abdalla Hamdok (Commission économique des Nations Unies pour l’Afrique), Christian Masset (Ministère français des affaires étrangères et européennes), Sanjay Mishra (Ministère indien des Finances), John Christensen, (Tax Justice Network).

Voir le programme : http://www.financialtaskforce.org/fr/calendar/conference2011/agenda/

Les flux financiers illicites en provenance des pays en développement (produits du crime, de la corruption et de la fraude fiscale) représentent près de 1 300 milliards de dollars par an. Ces flux minent les efforts de développement économique et encouragent la corruption et la criminalité dans les pays en développement. Dans le contexte actuel marqué par le « Printemps arabes » et la crise financière, les pays du G20 doivent prendre à bras le corps l’élimination de ces flux financiers illicites pour stimuler la croissance économique mondiale, lutter contre la corruption et renforcer les mécanismes financiers afin d’empêcher tout nouveau choc économique.

Pour en savoir plus sur les modalités de participation à la conférence ou pour obtenir de plus amples informations sur le programme, vous pouvez également contacter :

aux Etats-Unis, Monique Perry Danziger, relations médias, Global Finance Integrity ² mdanziger@gfipr.org +1-202-904-3113.

Le CCFD-Terre Solidaire apporte son soutien à l’organisation en France de la Conférence et peut participer à l’organisation de rencontres pour les médias avec les différents intervenants.

1 La Task Force on Financial Integrity and Economic Development est une coalition de 7 réseaux internationaux de la société civile engagés sur des questions de justice fiscale et de lutte contre la corruption ainsi que de 50 gouvernements.
Plus d’information également disponible sur le site http://www.financialtaskforce.org
2 Global Finance Integrity est un think thank américain spécialisé sur les questions de flux financiers illicites et leurs impacts sur le développement des pays du Sud. Il anime les travaux de la Task Force depuis 2009.

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Save the Date: 2011 Annual Task Force Conference

Christine Clough — Fri, 03 Jun 2011 19:32:56 +0000

Mark your calendar for the 2011 annual conference of the Task Force on Financial Integrity and Economic Development! This year’s conference will take place in Paris, France from October 6-7, 2011. Stay tuned for more information on the event through our website, on our Facebook page, and via our Twitter account.

I look forward to seeing you there!

Norwegian State Secretary Delivers Speech At The Fourth UN Conference on Less Developed Countries

Mina Remole — Thu, 19 May 2011 15:35:11 +0000

Fourth UN Conference on the Less Developed Countries
Istanbul, Turkey ~ Tuesday, May 10, 2011

Statement by Norwegian State Secretary Ingrid Fiskaa

Thank you, Mr President

The fourth UN conference on the least developed countries is an important opportunity to renew and revitalise the global partnership for our common good. I would like to thank the Government of Turkey for hosting this conference and for the leadership it has shown in the preparations.

Climate change represents a serious challenge to sustainable development. It is a global challenge that we all have to face, but we know that LDCs are particularly vulnerable in this regard – not least related to food security.

The link between climate change, development and sustainable growth is vital. We need to work hard to sufficiently reduce emissions to limit climate change to an increase of two degrees Celsius. Many of the LDCs have hardly any emissions to reduce, and we as donors can make it attractive to choose a more climate-friendly course of development.

But even if we do manage to meet the two degrees Celsius target, climate change will still have severe consequences, especially for the poorest countries. And women will suffer the most. There is a huge need for climate adaptation funding. Norway’s climate adaptation aid will focus on increased food security and disaster risk reduction.

In the preparations for this conference, the LDCs have stressed the need to focus on economic growth and infrastructure. We fully support that. Access to energy for all, both at household level and for industrial purposes is vital for economic growth in these countries. This is not least important for women. Norway is currently preparing for an international conference on access to energy for all to be held in Oslo in October. We have substantially increased our ODA allocation for renewable energy initiatives, mainly for hydropower, but also for small-scale power plants based on wind and solar power as well as other renewable sources.

However, aid alone will not be sufficient to fund development of renewable energy. It is crucial to find ways of using aid money to stimulate private–public partnerships in the renewable energy sector. Access to energy and private sector development is key to fight poverty and ensure sustainable development. This must be combined with equitable distribution of wealth and opportunities. Decent jobs for both women and men, and predictable tax systems, combined with good public health, education and other social services are also key factors.

Aid has been, and will continue to be for a long time, an important source of revenue for LDCs. The Norwegian Government is committed to allocating at least 1% of GDP to ODA. However, we also need to examine other financial flows in and out of poor countries. Developing countries probably lose at least ten times the amount they receive in aid through illicit financial flows. This money is mainly generated by trade mispricing and tax evasion, but also trafficking, the drugs and arms trade, and corruption. And it usually ends up in a tax haven. These financial flows represent a serious crime against the world’s poor and against the governments trying to promote development in their countries. Well functioning tax systems, dedicated police forces and judiciaries, and international action against tax havens and bank secrecy are important elements in the global fight against poverty and for justice.

Tax systems are crucial not only to secure increased revenues, but also to build citizenship. When you pay tax, you also take on a larger stake in the development of your country.

The size of the poverty challenge also requires us to scale up innovative financing. During the opening week of the 65th General Assembly, several countries, including Norway, agreed to work towards introducing a levy on financial transactions. The levy would be applied on a large scale, and to a wide range of transactions, and could provide stable and substantial financing for development.

International trade is also a potential engine for growth, provided developing countries gain access to markets and the know-how to negotiate the best possible agreements. We know, however, that formal market access is insufficient for many LDCs with weak productive capacities. Norway supports Aid for Trade through a number of multilateral initiatives. There is also need for a more fair international trade system, where countries can find policy space for their own development strategies.

Excellencies,

Emerging economies have changed the picture of international financial flows and international trade since the conference in Brussels. We are pleased to welcome middle-income countries into our common partnership for the LDCs. A number of emerging economies are providing a substantial amount of aid to LDCs. Whether we are discussing aid, debt relief, trade or investments, it is clear that partners in the South are crucial for the future success of our efforts. At the same time, we need to strengthen our global systems for financing development. More than anything we need to broaden the financial basis of the United Nations funds and programmes. The more multilateral, and thus less “Western” they become, the more sustainable they will be. There are many competitors out there. Let us all join together to address global problems with global solutions – through multilateral structures.

Excellencies,

We know that the political and economic empowerment of women is the single most important catalyst for change and development. Therefore, investing in women and girls opportunities is crucial. For example, the UN estimates that we can lift 150 million people out of poverty if women gain better access to land and equipment in the agriculture sector.

In a multilateral context we have made important progress in this area over the last 30 years. However, during the preparation for this conference, we have been very concerned about attempts to take us back in time. In this day and age, any suggestion that the empowerment of women is problematic is simply anachronistic. Development can only happen when a country can tap its full potential, including women.

Finally Mr President,

The Istanbul Programme of Action will reach beyond 2015. It must therefore be our shared responsibility to secure an outcome that will serve as a sound building block for our continuing efforts to fight poverty. We need to build further on the crucial factors for reaching the Millennium Development Goals, namely political will, good governance, protection of human rights, and particular focus on education and health, women and young people. At the same time, we must increase our focus on the structural causes of poverty: climate change, armed conflicts and illicit capital flows out of developing countries.

We look forward to working with our partners on all of these issues, and to securing a successful outcome of the fourth LDC conference.

Thank you.

Source: Norwegian Ministry of Foreign Affairs

Taxing pirate banking could help eradicate world poverty

Núria Molina — Wed, 06 Oct 2010 22:31:34 +0000

At its annual conference last week, the Task Force on Financial Integrity and Economic Development identified concrete measures that could help developing countries to mobilise the resources needed to achieve the Millennium Developing Goals (MDGs) and go even further to help eradicate world poverty and lay the ground for a fairer global financial system.

These measures include:

taxing the USD 15 to 20 trillion of private wealth sitting in tax havens
establishing accounting standards that oblige multinational companies to report their profits earned in every country
or setting rules for the automatic exchange of tax information between countries.

The Task Force is a global coalition of governments and CSOs including Eurodad, working to address inequalities in the financial system that penalise billions of people. This year’s conference focused on the actions needed to achieve greater transparency in the global financial system.

Illicit flows continue to drain resources from poor countries

More than USD 1 trillion in illicit flows leaves developing countries each year- often hidden in tax havens and secrecy jurisdictions with the complicity of 50 of the world’s biggest banks. Two thirds of these illicit flows are due to tax evasion by multinational companies operating in poor countries.

In Africa, the problem is staggering: a study by Global Financial Integrity published earlier this year, Illicit financial flows from Africa: Hidden resource for Development, found that over the past four decades the continent lost as much as US$854 billion, which exceeds all of Africa’s outstanding external debt at the end of 2008. Governor Ndug’u from the Central Bank of Kenya noted in an address to Governors of African central Banks in 2007: “The costs of this financial haemorrhage have been significant for African countries. Massive capital outflows and drainage of national savings have undermined growth. Capital flight has also had adverse welfare and distributional consequences on the overwhelming majority of poor in numerous countries in that it has heightened income inequality and jeopardised employment prospects.”

At a session which discussed how financial integrity could help achieving the Millennium Development Goals, Gail Hurley – from the UNDP – said that USD 353-380 billion of external finance a year are needed to achieve the MDGs by 2015. The shortfall in Official Development Assistance is US$ 180 billion per year. Moreover, at least USD 86 billion will be needed annually to finance climate change adaptation and mitigation.

Therefore, curbing illicit flows from poor countries is crucial to allowing them to mobilise much needed domestic resources to finance poverty eradication and pro-poor development. In Africa, the money lost in illicit flows during the last four decades would not only be enough to wipe out the region’s total outstanding external debt, but leave USD 600 billion for poverty alleviation and economic growth.

What measures must be taken to curb illicit financial flows?

The thrust of the conference in Norway discussed how to address this development black-hole, and what specific measures could be put in place to help developing countries retain much-needed resources to finance equitable development and poverty eradication.

Among them, establishing a binding country by country reporting standard for multinational companies could help governments to know the profits of companies in their country, which would also ease tax collection. Setting up agreements whereby countries automatically exchange tax information would also facilitate the work of tax authorities.

At a discussion about a Task Force initiative to enhance economic transparency, James Henry presented a proposal to tax offshore wealth sitting in first world banks. According to Henry’s estimates, “there is US$ 15 to 20 trillion in private wealth sitting in offshore bank accounts, brokerage accounts and hedge fund portfolios, completely untaxed.” He said that the real tax haven problem is not only one of tiny islands on the periphery of the system, but rather of a global industry of pirate banking like “JPMorgan chase, UBS, Credit Suisse, Citigroup, Morgan Standly, HSBC, Deutsche Bank, Barclays, Bank of America, BNP Paribas, Goldman Sachs and ABN AMRO…based in New York city, London, Amsterdam, Zurich, Geneva, Frankfurt and Paris.” He proposed that the trillions held offshore- most of which are proceeds from past and present tax evasion- be taxed a modest 0.5% annually. He added that “only anonymous wealth should be taxed. If the beneficial owner can show they’re paying taxes on their offshore assets back home, they can claim rebates. Most will just pay up.”

Are governments willing to do what it takes to curb illicit flows?

The governments of Norway, Chile, Denmark, France, Germany, Canada, the Netherlands and Spain are on the partnership panel that cooperates closely with the Task Force. Representatives of most of these governments participated at the conference, showing willingness to deliver.

However, there is often a long way from words to action. Even one of the most active governments in the fight against illicit flows, Norway, which published last year the ground-breaking report Tax havens and development, was criticised by civil society and academics at the launch of Eurodad and members’ report Investments for development: Derailed to tax havens, for not having stricter guidelines regarding the use that the government fund, Norfund, makes of tax havens when investing in the South.

Civil society groups in Europe will continue to pressure European governments, the European Investment Bank and the World Bank Group to set the highest standards to ensure that they do not invest in companies registered in tax havens. There is a long way to go, but swift progress in recent years shows that taxing multinational companies and clamping down on tax havens is a priority for citizens in the North and the South. At the end of the day, as some say, taxes are what we pay for civilised society.

Governments are just not set up to invest in strategic thinking

Richard Murphy — Wed, 29 Sep 2010 10:24:31 +0000

The above comment has just been made by a senior government official at the Task Force conference in Bergen.

How right he is.

And he followed up by saying that if the three premises of economics are wrong – there is imperfect information, high transaction costs and irrationality – then making clear what we’re saying combats these failures by reducing asymmetry of information is vital.

And transparency he says is key – and reiterates a point I make often – this is because we will all be better off with it. But this requires a change in broader mindset which government won’t deliver.

Which is why he says what we’re doing in the Task Force on Financial Integrity and Economic Development is so vital. As a continuing presence, investing in this space, we provide the vital counterbalance to governments based on reaction to issues when the underlying failure is systemic.

Watch the Conference Live from Bergen!

Clark Gascoigne — Tue, 28 Sep 2010 07:27:10 +0000

The 2010 annual conference of the Task Force on Financial Integrity and Economic Development in Bergen, Norway is now underway.

Even if you weren’t able to join us in person, you can still join us virtually as we’re streaming the conference live on our website here…

Opening remarks from Erik Solheim are now streaming live at this link.

New Report – ‘Investments for Development: Derailed to Tax Havens’

Richard Murphy — Fri, 17 Sep 2010 23:44:48 +0000

The Task Force on Financial Integrity and Economic Development conference in Bergen starting on 28 September also sees a side event on that day when Danish NGO IBIS and a range of its partner launch a new report. That report – entitled ‘Investments for Development: Derailed to Tax Havens: A report on the use of tax havens by Development Finance Institutions’ – has been written by UK based chartered accountant Richard Murphy (me), the director of Tax Research UK, a member organisation of the Co-ordinating Committee.

Richard Murphy seen speaking at last year's conference.

The report, which is sponsored by IBIS, NCA, CRBM, Eurodad, Forum Syd and the Tax Justice Network, looks at a critical area in the development activities of many European countries – the role of the Development Finance Institutions that they own in funding private sector investment in developing countries.

Development Finance Institutions (DFI) invest their capital in developing countries for the express purpose of advancing development in those places by promoting investment in local business. In this respect their activities can be compared to that of the European Investment Bank (EIB) and International Finance Corporation (IFC) – a part of the World Bank. At the end of 2008 the DFIs that were members of the European Development Finance Institutions network (EDFI) had combined funds invested of about €16.7 billion.

However, the business models of the DFIs has been subject to much criticism. Their investments have moved away from those areas normally associated with poverty relief – such as agriculture – and into areas like finance, hotels and telecoms. The DFIs have in many cases ceased to invest directly but do instead invest through funds over which they appear to have little control. And many of their investments are now routed through tax havens – and issue which attracted international attention when Norway banned their fund from investing, at least temporarily, in this way after the report of their Commission on Capital Flight from Developing Countries attacked this practice in their report “Tax Havens and Development”.

The new IBIS report looks at these issues and suggests a new Code of Conduct for Development Finance Institutions to replace the one they have themselves recently proposed.

The Code is robust, and promotes transparency, accountability and a focus on local management of the investment Development Finance Institutions make. It is meant to be the basis for debate and engagement with the DFIs – who it is hoped will be represented in Bergen.

The event promises to be thought provoking and the start of an enhanced dialogue across Europe on what the role of DFIs is in a new era for aid as the world struggles to come to terms wit financial crisis.

You are welcome to join the discussion at the Radisson Blu Hotel Norge, Bergen on 28th of September, 5.15pm- 6.15pm

Achieving Transparency: A Dialogue for Action

Christine Clough — Tue, 31 Aug 2010 23:50:25 +0000

The Bryggen quarter in Bergen, Norway | Photo: techectomizer, Picasa

In just four short weeks the Task Force will host its second annual conference, and we want you to be there! Titled Achieving Transparency: A Dialogue for Action, the 2010 annual conference of the Task Force on Financial Integrity and Economic Development will take place at the Radisson Blu Hotel Norge in beautiful Bergen, Norway from September 28-29, 2010.

The current financial crisis evidences the same lack of transparency in the global financial system that has affected developing countries for decades. Concrete, practical means exist for enhancing transparency to the benefit of rich and poor nations alike.

Speakers and panelists will address the Task Force’s five recommendation areas for achieving financial transparency: country-by-country reporting, knowledge of beneficial ownership, automatic exchange of tax information, curtailment of trade mispricing, and harmonization of predicate offenses among FATF countries. Breakout sessions will focus on upcoming projects and specific areas of concern within illicit financial flows, including a new financial integrity index, corruption, Millennium Development Goals, the G20 process, Africa’s concerns about illicit outflows, and more. Together, speakers and participants will contribute ideas for an action agenda aimed at achieving transparency, a plan that will guide the Task Force’s further programs!

In addition to being able to engage in discussions with area experts, participants will also hear from and speak with current (and future) global leaders such as Erik Solheim of Norway, Eva Joly of France, Mallam Nuhu Ribadu of Nigeria, and Rafael Espada of Guatemala.

Register today and view a copy of the agenda. You can also check out speeches, presentations, and videos from last year’s conference in Washington, DC by clicking here…

The registration deadline is Tuesday, September 7^th, so mark your calendars! Questions? Send me an email at cclough@financialtaskforce.org.

I look forward to seeing you in Bergen!

Task Force Conference 2010 – “Achieving Transparency: A Dialogue for Action”

Task Force — Mon, 23 Aug 2010 19:56:24 +0000

The 2010 annual conference of the Task Force on Financial Integrity and Economic Development will take place September 28-29 in Bergen, Norway. Register now to reserve your place.

A week in DC

Richard Murphy — Fri, 18 Sep 2009 14:25:53 +0000

My week in DC is not yet over: I have some meetings still to do, but my on-line week nearly is. I admit it’s too early to appraise all that has happened. But I’ll offer first thoughts.

First highlight: World Bank MD Ngozi Ikonjo-Iweala calling for mass civil society action against illicit financial flows. Has the Bank got the issue? I think so.

Second, constructive dialogue with the Oxford team. I hope we can build on it.

Third, clear rejection of the view put forward by some economists that data prevents analysis of this issue or that there is even no issue at all. I think those who tried this line of arguing lost a lot of credibility.

Fourth, good support for progressive thinking e.g. on unitary taxation.

Fifth, some good focus on other areas e.g. human trafficking.

Sixth, the clear impression the Bank is committed to work in this area.

That was a good outcome at the Bank. It was a stressed two days, but in the end the effort in getting this far was well worthwhile – the programme for tackling abuse has moved forward.

And the Task Force? Better still. Highlights: Carl Levin, Lord Brennan, the economist’s panel soundly rejecting the idea there is no issue to address, the session on asset recovery that brought this down to the nuts and bolts of getting cash for development, some say my own session on country by country reporting (I admit, I greatly enjoyed it), and more. Unlike the Bank there wasn’t a duff presentation – not one. Many were superb. And with the Norwegian government re-elected this week their commitment to this work continues. Which is great news.

And why do this? As Tom Cardamone of GFI said in his closing comments: this all comes down to one word, which is justice. Justice for the poor of this world. That’s the start, the middle and the end of this work. I hate travelling – and I love my home. But the hassle of an event like this is worth it if we can help deliver real results. Nothing happens overnight in this sector, but my opinion is we are making progress against abuse; abuse that comes in many forms. And that is the motivation in all of this.