Responding to IMF Managing Director, Christine Lagarde’s curtain-raiser speech today, ahead of the IMF and World Bank Spring meetings, Nadia Daar, Oxfam International’s Head of Washington office, said:
“Madame Lagarde reminds us that traditional approaches to economic growth are failing and poor countries are being hit hardest. We are glad the IMF recognizes the ‘winner takes most' economies we have created are unsustainable and we welcome her call to address excessive inequality through progressive tax measures and more spending on public services such as education and health.
“For low-income countries, low levels of domestic taxation, corporate tax avoidance, declining aid flows, and growing debt combine with the vagaries of climate change to create a perfect storm. Corporate tax dodging, and the international rules that allow it, undermine poor countries ‘ability to increase tax revenue.”
“Urgent action- with developing countries at the table- is needed to tackle tax avoidance, restructure debt through transparent and fair mechanisms that protect poor countries, and respond to climate change. The IMF should support countries at a national and international level to make those critical policy reforms.”