A. M. 
UN Trade and Development (UNCTAD), highlights the urgency of more inclusive and transparent international fiscal cooperation to meet the needs of the global South. According to the Trade and Development Report 2024, only 22 developing countries are investment grade, facing difficulties in accessing capital and an investment gap critical to achieving the Sustainable Development Goals (SDGs).
The global financial crisis, the high cost of borrowing and limited public financing exacerbate this picture. To reverse this trend, UNCTAD proposes reforming the international financial architecture, expanding fiscal space through flexible liquidity, debt restructuring and increased lending for development.
It also underlines the need to mobilize domestic revenues by addressing tax evasion, corporate arbitrage and illicit financial flows, which disproportionately affect low-income countries. Between 2015 and 2019, 40% of multinationals’ profits were shifted to tax havens, reducing global tax revenues by 10%.
The proposal for a UN Framework Convention on International Tax Cooperation seeks to ensure equality in tax decision-making. This global platform could close gaps in the financial system and strengthen domestic resource mobilization, prioritizing inclusiveness and transparency.
To achieve this, effective dialogue is required between countries in the North and South, addressing tax inequalities and risks associated with differentiated regimes. This effort will enable governments to finance critical investments and reduce dependence on external resources.
International tax reform will not only shape the future of tax cooperation, but will also lay the foundations for equitable financial governance, which is essential for global sustainable development.
