South Centre’s Submission to the 3rd Intersessional Meeting for Dialogue and Cooperation on Human Rights and the 2030 Agenda for Sustainable Development
Strengthening human rights for fighting inequalities and building back better
The COVID-19 pandemic has caused a global crisis without precedent in modern history. Its effects have not been felt equally among all countries as it has exacerbated the profound economic and social inequalities affecting the most vulnerable. In light of the lessons, we have learned – and are still learning – from the fight against COVID-19 pandemic, the 3rd Intersessional Meeting for Dialogue and Cooperation on Human Rights and the 2030 Agenda serves as a vital opportunity to understand the needs and realities of those who are still ‘left behind’.
The world faces many challenges besides the current coronavirus pandemic, including hunger, environmental destruction, climate change, the proliferation of nuclear weapons and rising inequality. Global cooperation is necessary to address these challenges and, in some areas, the global community is responding to them. Calls to form a coalition against a particular country, such as from the United States towards China, divert attention from the problems the world is facing and hamper progress in addressing these global challenges. History taught us that the best way to resolve our differences and to move forward is through dialogue and cooperation, not confrontation.
The South Centre is celebrating its 25th Anniversary this year. The Centre was established by an Intergovernmental Agreement which came into force on 31 July 1995. Its predecessor, the South Commission, recognized the need to strengthen South-South cooperation in international affairs. In its report The Challenge to the South, the South Commission emphasized the need for countries of the South to work together at the global level. That is why the Commission recommended the creation of a South organization charged with undertaking this challenge. The South Centre, an independent intergovernmental think-tank of developing countries, was then created to analyze the development problems of the developing countries, encourage them to value and share their common experience and provide intellectual and policy support for them to act collectively and individually, particularly at the international level.
This document compiles the messages received from the Missions in Geneva of Member States of the South Centre and other communications received concerning the 25 years celebration. The South Centre is very grateful for the warm wishes and pledges of continued support expressed in these messages, and reaffirms its commitment to remain at the service of its Member States and the South at large.
Assessment of the Two-Pillar Approach to Address the Tax Challenges Arising from the Digitalization of the Economy
An Outline of Positions Favourable to Developing Countries
Report by the South Centre Tax Initiative’s Developing Country Expert Group
Irene Ovonji-Odida, Veronica Grondona, Samuel Victor Makwe
This report is written primarily for developing country negotiators in the Inclusive Framework and accordingly contains a technical assessment of Pillars One and Two. The aim is to discuss the positions and principles which can inform the negotiations in developing countries’ best interests. However, it is also written for a larger audience, particularly diplomats involved in financing for development discussions and international trade rule making, so as to sensitise them to the nuances of the ongoing discussion on the taxation of the digitized economy. In the midst of the COVID-19 pandemic and a devastating economic downturn, it is more important than ever to ensure that developing countries obtain their due taxing rights. This report is an initial contribution in that direction.
The South Centre Tax Initiative (SCTI) submitted its comments on the Interim Report of the High Level Panel on Financial Accountability Transparency and Integrity for Achieving the 2030 Agenda (FACTI Panel). The Report analyzed the “gaps, vulnerabilities and impediments present in the current international systems related to financial accountability, transparency and integrity issues” and found that “international systems can help countries prevent the drain of resources from development, contributing to achieving the 2030 Agenda, but that they lack co-ordination, leave gaps and may overlap and even conflict with each other. The shortcomings are systemic and require systemic responses.”
Assessment Framework for National Ecosystem for South-South and Triangular Cooperation
The South Centre provided instrumental technical feedback for the development of the Islamic Development Bank (IsDB)’s NEW publication Assessment Framework for National Ecosystem for South-South and Triangular Cooperation.
Comments on Discussion Draft: Possible Changes to the United Nations Model Double Taxation Convention Between Developed and Developing Countries Concerning Inclusion of software payments in the definition of royalties
The South Centre Tax Initiative (SCTI) offers its comments on the discussion draft on inclusion of software payments in the definition of royalties. As is well known, this is an important issue that developing countries have been fighting for, for a while now. The SCTI supports the proposed change which seeks to insert the phrase “computer software” in article 12(3) of the United Nations Model Double Taxation Convention Between Developed and Developing Countries. The COVID-19 pandemic adds special urgency to resolving this long-pending issue as revenue from software payments made from developing countries continues to increase.
Designing an International Legally Binding Instrument on Business and Human Rights
By Daniel Uribe and Danish
The present document is substantially based on the background materials prepared by the South Centre (authored by Kinda Mohamadieh, Daniel Uribe, and Danish) for various sessions of the Open-Ended Intergovernmental Working Group on transnational corporations and other business enterprises with respect to human rights (OEIGWG), established by Resolution 26/9 of the Human Rights Council, held since 2015.
The objective of this document is to provide support material for State delegations and other stakeholders for the negotiation of a binding international instrument to regulate, in international human rights law, the activities of transnational corporations and other business enterprises. The document considers a number of issues and technical details that have been addressed during the different sessions of the OEIGWG.
Comments on Session Paper relating to tax consequences of the digitalized economy – issues of relevance for developing countries
The SCTI offers its comments on the Session Paper on “Tax consequences of the digitalized economy – issues of relevance for developing countries” (E/C.18/2020/CRP.25) to be discussed at the 20th Session of the UN Committee of Experts on International Cooperation on Tax Matters. The comments examine key issues for developing countries in the Unified Approach (UA) to Pillar One and explore alternative solutions at the international level as discussed in the Paper.
Compilation of Extracts from Selected Country Statements during 73rd World Health Assembly supporting Access to Health Products on COVID-19
The compilation below was done on the basis of published statements on the WHO website (https://apps.who.int/gb/statements/WHA73/) and the speeches delivered orally for those delegations which have not submitted their statements. This is a non-official document for information only.
Comments to the FACTI Panel on improving cooperation in tax matters
The South Centre Tax Initiative (SCTI) would like to draw the attention of the Financial Accountability Transparency and Integrity (FACTI) Panel to the following aspects of improving international tax cooperation:
(1) legal procedure to upgrade the UN Tax Committee into an intergovernmental body;
(2) Right of even Inclusive Framework Members to take unilateral measures;
(3) Need for comprehensive scope of Pillar One;
(4) Primacy of Undertaxed Payments and Subject to Tax rules in Pillar Two;
(5) Need for clear and administrable rules for dispute prevention.
Intellectual Property Rights and the use of Compulsory Licenses: Options for Developing Countries
By Dr. Carlos M. Correa
In view of the forthcoming review of the implementation of the TRIPS Agreement, and of a possible revision of its provisions in future WTO negotiations, it seems important that information is available to developing countries on the ways in which compulsory licenses have been provided for and used in developed and developing countries. The purpose of this paper is to provide concrete examples on how compulsory licenses have been provided for in national laws and, in particular, to illustrate the grounds and conditions on which such licenses have been granted in specific instances. The emphasis of the paper is not on the general principles relevant to the matter, but on the ways in which compulsory licenses have been actually provided for or used in order to satisfy diverse public interests. Many of the decisions pertaining to the granting of compulsory licenses in the developed countries may be useful in indicating the options available to developing countries wishing to have adequate legislation at the national level on this matter. The decisions referred to also make it clear that compulsory licensing is firmly rooted in the legal systems of developed countries, including those that seem to oppose that concept in international fora.