Low Income Countries
South Centre Inputs on “Tax Incentives Principles”
February 2025
The South Centre has provided its inputs on the Tax Incentives Principles Public Consultation Draft which was published on 10 December, 2024, by the Platform for Collaboration on Tax (PCT). This document builds on the 2015 PCT report on Options for Low Income Countries’ Effective and Efficient Use of Tax Incentives for Investment.
The draft contains six principles, and detailed commentary to elaborate on each principle and direct stakeholders to additional resources. The principles are meant to help policymakers and other stakeholders navigate the policy, legislative and administrative issues related to tax incentives, with a particular focus on the circumstances of developing countries. The consultation process invited input on the draft’s content, coverage, applicability, and recommendations for refinement.
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Systemic reform of the international debt architecture is yet to start
By Yuefen Li
The COVID-19 pandemic has pushed the reform of the international debt architecture to the policy agenda. Up to now policy measures to address the crushing debt burden of developing countries have focused on boosting time bound liquidity provision, which is insufficient in amount and restrictive in scope as debt-ridden and pandemic struck middle-income countries have not been covered. Even the implementation of these policy measures has been hindered by existing systemic problems. The reform of the debt architecture is yet to start. However, complacency seems to emerge. The risk of “wasting” the crisis should be avoided.
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The Weakness of Economic Multilateralism
By José Antonio Ocampo
The weakness of multilateral cooperation was evident at the meetings of the Group of 20 and the Bretton Woods institutions in Washington. The limited international cooperation contrasts with the ambitious domestic policies adopted by some developed countries, and in particular the United States, to manage their crisis. The big losers will be the emerging countries, for whom cooperation has so far been minimal.
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