Domestic resource mobilisation
Alliance Sud supports international endeavours to achieve greater transparency and better rules for global tax competition, so that profits are taxed where they are generated, and countries in the Global South can raise their own funds for sustainable development.
What it is about
Domestic resource mobilisation (DRM) within developing countries themselves is a key component of international development finance. However, the corporate tax take in countries of the Global South is substantially lower than in most OECD countries, in large measure owing to profit shifting to tax havens like Switzerland. Countries are therefore missing out on funds that should go to them and which they could independently dedicate to development and the pursuit of the SDGs.
Alliance Sud is critical of the detrimental role being played by Switzerland, which can afford to be fiscally lenient at the expense of the poorest, a practice the sole effect if which is to attract fiscal resources from all over the world. Alliance Sud therefore supports international efforts to bring about greater transparency and to better regulate the global offshore system. It is also working to ensure that the Administration and Parliament cannot simply ignore positive developments such as the negotiations on a UN tax convention.