At Lough Erne in Northern Ireland recently, leaders of the G8 discussed some of the fundamental questions facing our societies and economies. They came up with a short list of practical steps to take. Those steps are set out in a remarkably short and punchy declaration, which you can find here.
Representing half of the global economy, the G8 leaders recognized the need to promote growth and jobs and to support prosperity worldwide.
On trade, they agreed to resist protectionism and to conclude ambitious bilateral trade deals: particularly between the EU and US. Such a deal will reduce prices, increase trade flows and spur manufacturing and the production of services. We reckon that it will add over £100 bn to EU GDP.
Leaders of the G8 also recognised the problems caused to Governments everywhere by tax evasion and aggressive tax avoidance. Tax evasion and tax avoidance happen within states and across our borders. We need fair international tax rules and practices, so that each country can collect the taxes they are owed. The G8 agreed that tax authorities across the world should share information automatically to prevent tax evasion, and should not allow companies to shift their profits across borders to avoid taxes.
This is a counterpart, in the international sphere, to the arguments in Greece about the state’s capacity to collect taxes and the willingness of the taxpayer, whether individual or body corporate, to stump up what is due. No one likes paying tax, but it is a civic duty.
Effective tax collection is not only a technical matter of capacity. It also presupposes an identifiable and strong social contract between the citizen and the state. The state has to trust the taxpayer. In turn, the taxpayer has to trust that the state is fair and open, spends its money wisely and is free from corruption.
This touches on another of the three themes discussed by the G8, namely transparency. If we are to have a social contract that works, it’s essential that the people should hold Government and companies to account. The G8 leaders adopted an Open Data Charter, which sets out clear and simple principles about citizens’ access to data. It’s available here.
Greece is not, of course, a member of the G8. And none of these measures was directed specifically at Greece. But they are relevant to the current situation in Greece.
I have, then, a few questions for my readers:
- How can the G8’s work support reform efforts here in Greece?
- How can Greece ensure transparency?
- What roles should be assumed by the state, NGOs and the citizen?
In the Embassy now we’re preparing an event about transparency. Your thoughts about the utility and shape of such an event are very welcome!