For A New Global Deal
Foundation for European Progressive Studies (FEPS) and South Centre High-Level Expert Exchange
Geneva, 8 September 2023, 09:00 to 17:00 CET
Room Rhin (ground floor)
International Environment House 2
Chemin de Balexert 7-9
South Centre Comments on Pillar One – Amount B August 2023
The South Centre submits the following comments and recommendations to the OECD Secretariat on Pillar One – Amount B.
Trends, Reasons and Prospects of De-dollarization
By Yuefen Li
The 1944 “Bretton Woods Agreement” gave birth to the new international financial system marked by the centrality of the US dollar which is a crucial pillar of the global power of the United States. Over the past eight decades, the asymmetry of the shrinking US economic weight in the world economy and growing dominant role of the dollar has become more and more glaring. The disadvantages of overreliance on the dollar have been keenly felt, especially by developing countries. The recent moves to weaponize the dollar and the payment clearance system have triggered another wave of reassessment by national states and enterprises of the role of the dollar and led to the hitherto most broad-based de-dollarization process covering from Southeast Asia to Latin America and the Middle East. De-dollarization has been incrementally taking place in different forms and led by BRICS and some commodity exporting countries. However, there are many challenges to meaningful de-dollarization. Overall, de-dollarization efforts, despite important progress, have been limited and partial. There has been progress in reducing overreliance on the dollar through foreign exchange reserve diversification and trade invoicing as evidenced by the decline in the dollar’s share of allocated foreign exchange reserves and the increase of trade invoiced and transacted in currencies other than the dollar. However, on aspects requiring the deep financial market and wide network such as foreign exchange transactions, issuance of debt and payment clearance, the dollar’s share has not suffered a decline. To reform the international financial system, the BRICS in particular should continue to take the lead in furthering the de-dollarization efforts.
Public Workshop
Multistakeholderism and UN 2.0: Challenges and Alternatives for Developing Countries
7 September 2023 | 10:00 – 11:30 EDT
Co-organized By the South Centre and the Transnational Institute
Co-sponsored by Corporate Accountability and ESCR NET, Peoples´ Working Group on Multistakeholderism
This Public Workshop will discuss the findings of a new report commissioned jointly by South Centre and The Transnational Institute (TNI) and elaborated by Prof. Harris Gleckman on the idea of the increasing role of ‘multistakeholderism’ in making key policy and programmatic decisions in the context of the United Nations and other fora. The workshop will also serve as an opportunity to discuss the recommendations on how to deal with multistakeholderism and its risks for global governance and the participation of developing countries.
This event is designed as an open forum to foster dialogue and share views among representatives of the Group of 77 and China, particularly those based in Geneva and New York, and civil society organizations.
The public forum will be held in a hybrid format.
Course for Judges on copyright and access to knowledge in the age of artificial intelligence (AI)
“Copyrights and Access to Knowledge in the Age of Artificial Intelligence”
Co-organized by the South Centre (SC) and Thailand’s Court of Appeals for Specialized Cases
23 August 2023
OUTCOME STATEMENT
SOUTH CENTRE-WATAF JOINT SPECIAL TECHNICAL SESSION ON THE OECD TWO PILLAR SOLUTION
(JULY 4-5 2023)
The South Centre and the West African Tax Administration Forum (WATAF) successfully organised a two-day special session in Abuja, Nigeria, from 4-5 July, 2023, aimed at enhancing the understanding of WATAF and South Centre member countries on the draft rules of the OECD Two Pillar solution to taxation of the digitalised economy. The session brought together officials responsible for tax policy, legislation, and administration, along with experts representing African and Latin American countries in the OECD Inclusive Framework Steering Group.
Call for papers on Operationalization of the Loss & Damage Fund for Climate Change
Deadline: 15th October 2023
Deadline for abstract proposal: 1st September 2023
This call invites established scholars, early career academics, PhD students and practitioners (policy makers, lawyers) to submit papers. An abstract should be submitted, with a CV of the author/s before September 1st. The final paper should be submitted by October 15 following the format of a South Centre Research Paper. An honorarium of USD 1.000 will be offered for the best completed full paper that meet the standards of publication. Other accepted papers may also be published by the South Centre.
The GloBE Rules: Challenges for Developing Countries and Smart Policy Options to Protect Their Tax Base
By Emmanuel Eze, Sol Picciotto, Muhammad Ashfaq Ahmed, Abdul Muheet Chowdhary, Bob Michel and Tommaso Faccio
The OECD global minimum tax of 15%, known as the Global Anti-Base Erosion (GloBE) Rules, have meant that developing countries need to consider what policy responses to take to ensure they collect the minimum tax and not cede it to developed countries. One option being promoted by the OECD is the “Qualified Domestic Minimum Top Up Tax” (QDMTT), with the claim that it will help developing countries collect the minimum tax of 15%. This Policy Brief points out that under the QDMTT MNEs can still pay zero taxes, it does not guarantee tax collection, it is complex to administer, it curtails national sovereignty in the form of the “peer review” mechanism and it is relevant mainly for tax havens which are destinations of profit shifting. The Brief then outlines policy options relevant for developing countries, namely Alternative Minimum Taxes (AMTs) and reform of tax incentives.
Trends, reasons and prospects of de-dollarization
By Yuefen Li
The 1944 “Bretton Woods Agreement” gave birth to the new international financial system marked by the centrality of the US dollar which is a crucial pillar of the global power of the United States. Over the past eight decades, the asymmetry of the shrinking US economic weight in the world economy and growing dominant role of the dollar has become more and more glaring. The disadvantages of overreliance on the dollar have been keenly felt, especially by developing countries. The recent moves to weaponize the dollar and the payment clearance system have triggered another wave of reassessment by national states and enterprises of the role of the dollar and led to the hitherto most broad-based de-dollarization process covering from Southeast Asia to Latin America and the Middle East. De-dollarization has been incrementally taking place in different forms and led by BRICS and some commodity exporting countries. However, there are many challenges to meaningful de-dollarization. Overall, de-dollarization efforts, despite important progress, have been limited and partial. There has been progress in reducing overreliance on the dollar through foreign exchange reserve diversification and trade invoicing as evidenced by the decline in the dollar’s share of allocated foreign exchange reserves and the increase of trade invoiced and transacted in currencies other than the dollar. However, on aspects requiring the deep financial market and wide network such as foreign exchange transactions, issuance of debt and payment clearance, the dollar’s share has not suffered a decline. To reform the international financial system, the BRICS in particular should continue to take the lead in furthering the de-dollarization efforts.
This is an advanced draft of the Research Paper.
6th African Regional Conference
“Leave no one behind: Advancing One Health AMR National Action Plans Implementation in Africa”
Co-organized by the South Centre and ReAct Africa
14-16 August 2023
Lusaka, Zambia
COVID-19, Future Pandemics and the Africa Care Economy Index
By Salimah Valiani
In Africa, the care economy has long been unrecognised. At least since the last major pandemic in Africa, HIV-AIDS, caring work has been severely undervalued in the continent, and the redistribution of caring work, from females in the home and communities, is next to nonexistent. Undoing this structural inequality is crucial to improve health and wellbeing of girls and women in Africa, to be prepared for future pandemics, and to realise Africa’s demographic dividend for the benefit of the majority. To achieve this, the Africa Care Economy Index is offered as a policy, advocacy, and accountability tool.
Neglected Dimension of the Inventive Step as Applied to Pharmaceutical and Biotechnological Products: The case of Sri Lanka’s patent law
By Ruwan Fernando
Apart from the basic statutory definition in section 65 of the Intellectual Property Act of Sri Lanka, there do not appear to be any detailed statutory guidelines or judicial decisions to provide any framework for the assessment of inventive step in Sri Lanka. The current statutory definition is highly insufficient to evaluate the standard of obviousness in relation to biotechnological and pharmaceutical claims based on a combination or modification of a prior art reference.
The Courts in both developed and developing countries have adopted a variety of tests to evaluate the obviousness standard of a claimed invention based on a combination or modification of a prior art reference. Sri Lanka, as a developing country, should look at the development that has taken place in other jurisdictions and adapt the patent law to local conditions when developing tests or guidelines in a manner that is compatible with the World Trade Organization’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) and its biotechnology/pharmaceutical policy guidelines.
This approach that is appropriate to Sri Lanka is twofold. First, it is most likely to prevent the issuance of patents on trivial or incremental inventions that do not provide any technical advance to the existing prior art and are a mere extension of what is already known in the prior art. Second, it is most likely to protect genuine technical advances to the existing prior art while at the same time enhancing competition and promoting local innovations so that the local researchers will be able to draw on the existing knowledge for the purpose of follow-on innovations.
