Financial & Economic Justice – Including Tax & Debt Justice under a new financial architecture to finance Social and Climate Justice, Trade Justice and Decent Work Tax justice is needed: progressive tax systems, an end to tax avoidance and evasion, debt justice, financing through ODA/SDR and a more just financial system between the Global South and North;  including an international tax body under the auspices of the UN, a sovereign debt work out mechanism, fair trade and full respect for labour rights.

While most people are struggling with the burdens of the pandemic and climate crises – including job loss and lower wages – the earnings and assets of financial traders, many corporations and billionaires have literally skyrocketed. Unless the failures of the international tax system are urgently addressed, countries will continue to lose billions of public revenue dollars from tax abuse by multinational corporations and other illicit financial flows.

In addition, lower tax revenues and currency depreciations, coupled with higher expenditures to combat COVID-19 and deal with ‘natural’ disasters, have led to a sharp increase in the debt of low and middle-income countries. The debt crisis is compounded by the fact that many of the loans are illegitimate – driven by predatory lending, burdened with onerous and inequitable terms, failing to comply with legal and democratic norms, incurred by private corporations but assumed by the public sector, or simply stolen.

Indebted countries must prioritise social needs for the public good and not cut social spending in order to prioritise debt service payments. We need a fair, timely, transparent, binding and multilateral framework for debt crisis resolution, under the auspices of the United Nations, to address unsustainable and illegitimate debt.

Developing countries need access to highly concessional financing, under a fair financial architecture designed to meet the SDGs and deliver the Climate agenda. Economic relations between the Global South and North are characterised by deep inequities especially in trade. This includes  supply chains and associated exploitation of workers and the environment. These relations have to be made fair and sustainable for a global economy that promotes well-being of all and of the planet.

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Webinar: One year after the FfD4 Conference, 30.7.2027, 1pm gmt

Dear colleagues,

We are pleased to invite you to the webinar – One Year after the FfD4 Conference: Where are we with the Implementation of the Seville Commitment?

📅 Date: Thursday, 30 July 2026
🕐 Time: 13:00 GMT
⏱ Duration: 90 minutes
💻 Format: Online
🌐 Interpretation: English, Spanish and French

👉 Register here

Co-organised by: GCAP, LATINDADD and the Civil Society Financing for Development (FfD) Mechanism

Speakers and Moderators:

• Georgina Muñoz, LATINDADD/GCAP
• Penelope Hawkins, UNCTAD
• Rodolfo Reta, Permanent Mission of Mexico to the United Nations
• Stefano Prato, FfD CSO Mechanism
• David Archer, ActionAid
• Patricia Miranda, LATINDADD
• Bhumika Muchhala, Third World Network
• Bodo Ellmers, Global Policy Forum Europe
• Rodolfo Bejarano, LATINDADD
• Monica Centrón, GCAP Latin America and Caribbean

📖 Details here

Watch the video of our last webinar: After the World Social Summit.

We look forward to welcoming you on 30 July.

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Call to Mobilise: Economic Justice in the Jubilee Year 2025 – GCAP Newsletter

25 April 2025: In the current political climate, it is easy to become disillusioned and discouraged.

We face billionaires untethered in the US, xenophobia on the rise in Europe, and horrific violence in too many locations to list. Progress in the fight to end poverty has slowed to a crawl. The planet faces ever-worsening climate disasters fueled by fossil fuel pollution. And if that wasn’t enough, we are facing a debt crisis of historic proportions and it’s hitting the most vulnerable the hardest.

But now is not the time to despair. It is a time for powerful action!

In 2025, we have an opportunity. Why?

• This year is a Jubilee Year—a once-in-a-generation chance to cancel debts and transform the unjust International Financial Architecture.
• A series of key global meetings, like the 4th Conference on Financing for Development, the World Social Summit and COP30, provide opportunities to demand real change.
• And with only five years left to achieve the Sustainable Development Goals, policymakers know that urgent action is needed to close the gap — yet some countries choose to cut aid budgets instead.

Read the full newsletter here.

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Asia Dalit Rights Forum Rallies in India & Nepal, Demanding Economic Justice & Universal Social Protection

15 November 2024: The Asia Dalit Rights Forum (ADRF) organized public demonstrations at iconic locations in India and Nepal in September 2024, advocating for economic justice. They emphasized that economic justice is essential for achieving social justice and reducing inequality. The rallying calls, a part of September Mobilisation, included “Leave No Dalits Behind” and a strong civil society demand for universal social protection floors.

Full Report

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GCAP Nepal stages stunts for Economic Justice, demanding Universal Social Protection Floors & Health Coverage

15 November 2024: The NGO Federation of Nepal (GCAP Nepal) conducted demonstrations at iconic places such as Lord Krishna Temple, Bhimsen Temple and at the periphery of Patan Durbar Square, a UNESCO World Heritage site in Kathmandu, Nepal. These demonstrations advocated for Universal Social Protection Floors and Universal Health Coverage, highlighting Economic Justice as essential to achieving these goals.

Full Report

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Demonstrations for Economic Justice at Iconic Locations in Pakistan

15 November 2024: The Pakistan Development Alliance (GCAP Pakistan) organised demonstrations at several iconic locations across the country, including the Patan Minara, a 2,000-year-old Buddhist monastery in Rahim Yar Khan, and the District Press Club in Rahim Yar Khan. The protests called for Economic Justice, which encompasses Climate Justice, Debt Justice, Social Justice, and Universal Social Protection Floors, Universal Health Coverage (UHC).

Full Report

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GCAP Statement on 17 October 2024
International Day for the Eradication of Poverty

Worst ever global debt crisis affects billions of people

World Bank and IMF are part of the problem and not of the solution

17 October 2024, More than one billion people, half of whom are children, live in multidimensional poverty and unless deep-seated systemic barriers – such as discrimination and unequal political participation – are measured and addressed, the gap between those who are progressing and those left behind is expected to grow further.

Debt Crisis threatens to kill the SDGs

One of the most pressing challenges facing Latin America, Africa and Asian nations is a worsening debt situation that has been exacerbated by COVID-19 pandemic expenditures, the war in Ukraine and the climate emergency. In many countries, more than 30% or even up to 60% of the budget is spent for debt servicing – often more than for health and education together.

Currency devaluations have raised the cost of servicing external debt in many instances, while governments have been forced by conditionalities imposed by international institutions to implement austerity measures and cut spending on health, education and social protection. The UN estimates that only 17% of the SDGs will be achieved by 2030.

The global financial architecture, driven by the World Bank and International Monetary Fund (IMF), fails to provide adequate funding for the achievement of the SDGs – like social protection (SDG 1.3), even though social protection is a basic human right. On the contrary, these two institutions founded in Bretton Woods 80 years ago do further reinforce the impact of the debt crisis by demanding austerity from governments.

This is no wonder: The World Bank and IMF are dominated by G7 countries. The UN organisation for Trade and Development (UNCTAD) notes that indebted countries often lack adequate representation in multilateral institutions dealing with debt-related issues.

Read GCAP Statement on 17 October 2024: https://t.ly/_AcZK 

Read GCAP Newsletter on 17 October 2024 – International Day for Eradication of Poverty: https://t.ly/bPFUD 

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Global Days of Action against IMF & World Bank

GCAP & Civil Society Mobilize against IMF & World Bank’s 80-Year Legacy of Debt Domination, Call for Debt, Economic & Climate Justice

15 October 2024

Global Call to Action Against Poverty (GCAP), alongside several civil society organizations, has signed a statement demanding an end to 80 years of IMF-World Bank financial dominance that has left the Global South in perpetual debt, exploitation and ecological harm. From October 15-27, 2024, groups around the world will mobilize under the banner of the “Global Days of Action” to call for urgent reforms to the global financial system, targeting debt cancellation, climate reparations and economic justice.

Read the statement: https://t.ly/6HrD9 

Download the statement in Arabic, English, Filipino, French, German, Spanish, Sinhala Urdu

The statement criticizes the IMF and World Bank for maintaining policies that prioritize creditors’ profits, primarily in the Global North, while pushing unsustainable debt on developing countries. It highlights how these institutions, under the influence of G7 nations, have worsened inequality, suppressed democratic processes, and exacerbated environmental degradation, particularly in the Global South. GCAP and other signatories stand in solidarity with affected communities and advocate for reparations to those impacted by these exploitative systems.

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GCAP and 227 civil society and trade unions push for comprehensive UN framework on international tax cooperation

27 June 2024

A coalition of 228 civil society organisations including GCAP and trade unions, represented by the Global Alliance for Tax Justice (GATJ), has submitted comprehensive feedback on the zero draft Terms of Reference (ToR) for the United Nations Framework Convention on International Tax Cooperation (FCITC). This response comes as part of the ongoing efforts following the UNGA Resolution 78/230, which aims to create a fair and effective international tax system.

Download the feedback document on the zero draft ToR for the UN Framework Convention on FCITC here.

Read it here

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GCAP together with 175 civil society organisations signs joint submission for robust UN framework on international tax cooperation

27 May 2024

Global Call to Action Against Poverty (GCAP), along with over 175 civil society organsations and trade unions, has submitted inputs to the United Nations, advocating for a robust and inclusive framework for international tax cooperation. This submission is a response to the UN General Assembly Resolution 78/230, which initiated the process to draft terms of reference for a United Nations Framework Convention on International Tax Cooperation (FCITC).

Download the letter here.

Read it here.

The joint submission was coordinated by the Global Alliance for Tax Justice (GATJ), a Southern-led global coalition, with the support of Eurodad, the European Network on Debt and Development. The proposal emphasizes the need for a fair, transparent and inclusive global tax system that ensures equitable participation from all countries, particularly developing nations.

Key Procedural Recommendations:

Establishment of Inclusive Governance Structures: The FCITC should create a Conference of the Parties (COP) and a Secretariat to oversee international tax matters. This would be the first truly inclusive global tax forum, ensuring equal participation for all countries.

Incorporation of Existing Bodies: The UN Expert Committee on International Cooperation in Tax Matters should be integrated as a subsidiary body of the FCITC. Additionally, the establishment of a UN public registry for tax and fiscal policies, corporate transparency, and a global asset register is recommended.

Commitment to UN Principles: The FCITC should align with the UN’s principles, ensuring that all member states participate on equal terms and that existing non-UN tax standards do not dictate the outcomes of FCITC negotiations.

Substantive Elements Outlined:

The submission outlines several key objectives and principles that should guide the FCITC:

Promoting Fair and Transparent Tax Systems: Ensuring tax systems are equitable, progressive, and effective.

Combating Illicit Financial Flows: Addressing tax avoidance and evasion that disproportionately affect developing countries.

Linking Tax Policies to Global Goals: Aligning tax policies with international commitments on human rights, gender equality, public services, and sustainable development.

Key obligations for states include the review and renegotiation of existing tax treaties that conflict with FCITC commitments, enhancing the coherence of the international tax system.

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GCAP along with 540 CSOs Calls on IMF to End
Harmful Surcharges

Coordinated by MENA Fem, GCAP along with 540 signatories from prominent civil society organisations (CSOs) around the world signed letter sent this Wednesday to the IMF Executive Board, calling for a review of surcharge policies. This collective plea emphasizes the urgent need to reconsider the impact of surcharges on heavily indebted nations and their ability to address pressing global challenges. With an increasing number of countries facing the burden of surcharges, the letter underscores the importance of equitable multilateralism and sustainable global development.

Click here for the letter and signatories. 

Read the full letter below:

Dear members of the IMF Executive Board,

At last year’s Annual Meetings, Chair of the International Monetary and Financial Committee Ms. Nadia Calviño stated that the Fund “will consider a review of surcharge policies.” As the 2024 Spring Meetings approach, it is our understanding that the Executive Board plans to make good on this commitment, and will soon hold discussions to determine the future of this controversial policy.

We are encouraged by these signs, and appreciate the Fund’s willingness to engage with this longstanding demand from a large majority of IMF’s shareholders, academics and civil society. Now, we, the undersigned organizations, write to urge you to use this opportunity to put an end to this harmful and counterproductive surcharge policy once and for all.

The case against surcharges has been made many times before. This policy — which levies additional fees of up to 300 basis points on countries with high or longstanding levels of outstanding credit — is plainly procyclical. By punishing heavily indebted countries with additional debt, surcharges increase borrowing costs; exacerbate (rather than alleviate) onerous debt burdens; and divert valuable resources from investments in development, climate action, health, or education. The surcharges policy therefore contributes to the trends of increased social and political unrest recognised by the Fund as a risk to the global economy. It also disregards warnings about the urgent need for a more legitimate and equitable multilateral system in the UN Secretary General’s New Agenda for Peace.

From 2019 to 2023, the number of countries paying surcharges doubled from 8 to 16. This year, that number has jumped to 22.* This alarming trajectory is likely to continue as more and more countries resort to the Fund for financing in the face of accelerating debt and climate crises.

The IMF has yet to provide any evidence that surcharges disincentivize reliance on IMF credit. Indeed, the growing number of countries subject to surcharges is evidence to the contrary. The other justification for surcharges — that they are a necessary source of income for the IMF’s precautionary balances — is not only directly counter to the IMF’s mission, as Nobel Laureate economist Joseph Stiglitz has pointed out, but is also inaccurate.

Since civil society first began raising concerns, opposition to the Fund’s surcharge policy has expanded considerably. The G77 and China, representing nearly every nation in the Global South, G20 chair Lula da Silva, UN human rights experts, leading economists, the UN Global Crisis Response Group, UN Secretary-General António Guterres, dozens of former heads of state and government, hundreds of civil society organizations, and many more, have all called on the Fund to suspend or eliminate surcharges.

As the burden of surcharges and global demands to end them both continue to grow, it is clear that this path is not sustainable. It is no longer a question of whether to end this unjust and unjustifiable policy, but when. We urge you to act now.

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Declaration of the GCAP Global Assembly 2023

–Call for Global Justice to Achieve the SDGs

The GCAP Global Assembly 2023 meeting in New York on 20 and 21 September 2023 calls urgent attention to the multiple crises we face as humanity and priority actions needed as a result. These challenges have brought us perilously close to a critical threshold, where ongoing and deepening conflicts in all regions and multiple attacks on human rights defenders threaten our common future and violate fundamental rights of all. Many of the planetary boundaries have been breached, jeopardizing the continuity of life as we know it. This is a consequence of the irreversible impacts of climate change, accelerated biodiversity loss, rising global temperatures and unprecedented monsoon floods as well as environmental pollution.

The COVID-19 pandemic has exacerbated existing economic, social and environmental inequalities highlighting the persistent failures to learn from our mistakes. This is evident in our continued adherence to a development model that disregards human rights obligations of governments and relies on exploitation of people and nature. In the name of economic recovery, unjust policies are being promoted, leading to austerity measures, xenophobia, setbacks in social progress, heightened conflicts, land dispossession from communities and the exacerbation of socio-environmental conflicts for the imposition of megaprojects, monocultures and carbon markets. We denounce complicity between states and transnational corporations which promote fallacious and bogus solutions to the climate emergency.

Download the GCAP Global Assembly 2023 here.

Read the Declaration here. 

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GCAP & 221 civil society groups urge leaders at COP28 to transform public finance

GCAP and 221 civil society groups from 55 countries have sent an open letter calling on world leaders to transform international public finance to tackle climate change and deliver a just energy transition.

The letter, signed by the GCAP, Bretton Woods Project, Oil Change International, Debt Justice, Power Shift Africa, Asian Peoples’ Movement on Debt and Development, and Climate Action Network International, urges heads of state to use COP28 to overhaul global monetary, trade, tax, and debt rules, as well as international financial institutions like the World Bank and International Monetary Fund (IMF).

Released ahead of COP28’s Finance Day on 4 December, when major public finance announcements are expected, the letter warns the current global financial architecture is perpetuating fossil fuel production, locking climate-vulnerable countries into debt, and delaying a just energy transition.

When it comes to funding a just transition to 100% renewable energy systems, the gap between what climate-vulnerable countries have and what they need is vast. Phasing out fossil fuels and scaling up renewable in developing countries will cost an estimated $1.7 trillion a year, and rich countries’ ‘fair share’ of all climate costs in the Global South is calculated at almost $6 trillion a year. Both estimates dwarf the $100 billion a year in climate finance long promised by high-income countries to low-income ones.

The letter states that public money should be used to fund proven climate solutions and prioritise community-led renewable energy, rather than fossil fuels; development banks should be more accountable and democratic; and large scale debt cancellation must be secured.

Finance-related discussions on the table at COP28 include: new pledges to the Loss and Damage fund; sessions on Climate Resilient Debt Clauses, IMF Special Drawing Rights and innovation; and the launch of a new taxation taskforce, led by France and Kenya. Barbados, Kenya and Colombia are among the countries calling for financial system reform.

Read the Letter Here.

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Civil Society Advocates for New IMF Special Drawing Rights Allocation at COP28 to Support Countries in Need

Photo credit: Down to Earth

At COP28, civil society organizations, academics, and experts are urging world leaders to prioritize the incorporation of IMF Special Drawing Rights as a fundamental aspect of the response to the climate crisis. A statement issued by 120 civil society organizations, including the Global Call to Action Against Poverty (GCAP), and 23 academics and specialists emphasizes:

• A new $650 billion issuance of SDRs for immediate global relief, and regular, periodic SDR issuances to support climate investments;
• The creation of targeted future allocations that distribute SDRs more effectively toward all low- and middle-income countries;
• Reforms to broaden SDR rechanneling mechanisms while minimizing debt and conditions attached to their use.

A growing number of developing countries are spending more on debt service than on climate and social spending, combined. Loss and damage from climate change is already costing climate vulnerable countries nearly $200 billion per year. Despite the G20’s commitment to rechannel $100 billion in SDRs in October 2021, as of October 2023 just $702 million of these funds had actually reached vulnerable countries.

The letter notes the need for a new $650 billion issuance of Special Drawing Rights to help meet urgent and climbing financing needs for developing countries in ways that won’t create additional debt burdens and undue policy conditionality.

At this time of crisis, the letter calls for action on SDRs to go much further than that. How Special Drawing Rights work and how they are distributed is decided according to an unequal global financial architecture. The Vulnerable Twenty (V20) group of countries notes that 68 climate-vulnerable members, while accounting for “21.7% of the global population and 44.7% of IMF programs, have only 5.3% of IMF votes. This unbalanced system harms V20 countries in the allocation of Special Drawing Rights (SDRs).”

The fact that the allocation of SDRs is pegged to the IMF’s quota system means that they are distributed first to those who need them least.

This quota system, rooted in colonial legacies, also determines that those same countries hold the largest voice in IMF decision-making. In a few days’ time, it is expected that the IMF’s Governors will again conclude a general review of quotas without realignment of IMF quota shares. Given the failure of the IMF’s quota review to give a greater voice to climate vulnerable countries, we must call for more ambition at COP28. We can – and must – decide now to change the rules to create an international reserve currency system that works for people and the planet.
Read the Statement Here. 

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GCAP demands urgent action for Inclusive and Effective International Tax Cooperation

Nov 07, 2023

In a powerful statement, a coalition of civil society organisations including the Global Call to Action Against Poverty (GCAP), and trade unions has come together to support the United Nations General Assembly (UNGA) Draft Resolution on the “Promotion of Inclusive and Effective International Tax Cooperation.” This initiative highlights the critical importance of global efforts to enhance international tax cooperation, providing a path towards fair and equitable fiscal systems for nations worldwide.

The letter underscores the necessity of cooperation and collaboration among nations to address the challenges of our time, strengthen international tax systems and protect public resources. As many as 212 international, regional as well as national organisations covering 68 countries have signed the letter so far.

The coalition’s letter emphasises several key points:

A Call for a UN Tax Convention: The coalition advocates for the establishment of a Member State-led, open-ended ad hoc intergovernmental committee to develop a comprehensive UN Tax Convention. This convention, if realized, would be the world’s first genuinely global agreement on international tax cooperation, ensuring that all nations can participate on an equal footing.

Urgency in the Face of Global Challenges: With the ongoing Covid-19 pandemic, increasing public debt service payments, and rising costs of living, the need to enhance domestic resource mobilization and combat illicit financial flows has never been more critical. The coalition calls for the completion of the UN Tax Convention by June 2025 as an urgent priority.

Holistic Approach to International Tax Cooperation: The coalition supports a UN Tax Convention with a comprehensive scope, flexibility, and resilience to address the evolving landscape of international tax cooperation. This includes tackling issues related to tax-related illicit financial flows and the taxation of income in our increasingly digitalized and globalized economy.

Integration with Key UN Agendas: The coalition emphasizes the importance of connecting international taxation to other critical UN agendas, such as sustainable development, gender equality, environmental protection, and more. Fair and progressive tax systems are seen as fundamental to achieving these global goals.

Inclusive Civil Society Participation: The letter highlights the significance of civil society’s active engagement in the UN tax process. Civil society organisations and trade unions bring essential perspectives, knowledge, and solutions to the table, promoting transparency, fairness, and effective governance in global tax matters.

Click here to download the letter on tax justice signed by GCAP.

GCAP signs statement to cancel the debt of Global South countries now

June 23, 2023