2017 SADC People s Summit Regional Debates and Public Speaking Gala. Strengthening Youth Participation in Policy Dialogue Processes

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1 2017 SADC People s Summit Regional Debates and Public Speaking Gala Strengthening Youth Participation in Policy Dialogue Processes Constitutional Hill, Johannesburg South Africa August 2017 Introduction The 2017 Southern Africa Development Community (SADC) People s Summit Debate and Public Speaking Gala will be held from the 16 th 18 th of August 2017 at Constitutional Hill, in South Africa. The debate tournament will bring together 40 participants from up to 12 universities within the SADC. The Zimbabwe Coalition on Debt and Development (ZIMCODD) in partnership with Tax Justice Network Africa (TJNA) will organize the Regional Tertiary Debate & Public Speaking Gala at the SADC People s Summit. Background Problem The adoption of the Sustainable Development Goals in 2015 has given greater impetus to the quest to address underdevelopment and improvement of the quality of life across the globe, and especially in Africa. Of note is the role that domestic resource mobilisation (DRM) will play in the achievement of the global goals to end poverty, climate change, and ensure prosperity for all. This has also been reiterated through global commitments under the Financing for Development (FfD) for Agenda P a g e

2 Despite Africa s immense natural wealth, fiscal regimes governing the extractives sector in most countries across the continent make it difficult for these countries to effectively tax the sector. In many cases companies enjoy a wide range of investment incentives coupled with asymmetric tax agreements and treaties that often favour wealthier countries, from which most multinational companies originate. Southern Africa has the highest levels of inequality in Africa and is among the most unequal regions in the world. 1 Most countries within the region face similar social, economic and political challenges. Ironically, the region is endowed with substantial natural resources such as oil, gas and other natural deposits. Moreover, the resource potential of Africa is enormous, confirming that the continent has endless opportunities to finance its own development. In fact, mineral endowment represents one of the best assets for mobilizing revenues for growth and Africa s structural transformation. The extractive sector remains a highly significant source of fiscal revenues for many countries, accounting for more than 70 per cent of African exports. 2 Translating the abundant wealth into sustained riches for all citizens, however this still remains a challenge. The proverbial paradox of plenty has been a curse on many countries development. This dichotomy is largely attributed to poor management of natural resources. Many fiscal regimes governing the extractives sector in most countries across the continent make it difficult for governments to effectively tax the sector. In many cases companies enjoy a wide range of investment incentives coupled with asymmetric tax agreements and treaties that often favour wealthier countries, from which most multinational companies originate. This set of dynamics often hampers national exchequers from being able to effectively raise sufficient revenues which have led to Africa s overdependence on Overseas Development Assistance (ODA). Countries within the continent are setting relatively low corporate income tax rates and offering a variety of incentives to foreign cooperates in an effort to boost the tax base, attract foreign direct investment (FDI) and eventually increase revenue. A 2016 survey by auditor KPMG showed that the average corporate income tax rate of 28 African countries is 23% or lower, with Mauritius being the lowest at 15%. Most of the countries considered in the report called The Africa Incentive Survey 2016 are offering some sort of incentives. Africa at large is associated with environmental degradation, economic disturbance, population displacement, and accelerated levels of inequality and poverty. This, therefore, calls for robust governance mechanisms that ensure that resources are managed in a manner that guarantees 1 Joint report of Economic Commission for Africa Southern Africa Office and UNDP Zambia Country Office P a g e

3 and ensure that revenue from the extractive industry is secured and managed to eradicate poverty and redress inequality. Without specific policies to address key governance and policy challenges, the contribution of the extractive sector to broad-based socio-economic development will remain suboptimal. Besides equity and transparency, African countries are facing an even greater challenge of fairness. Mineral-rich countries are not collecting a fair share of tax revenue from their resources. Tax efforts in resource-rich African countries have remained below the African average. Cross-border illicit financial leakages drain away the much-needed resources that would otherwise be available to finance development priorities. The existing ineffective mineral regimes and illicit financial practices along the mineral value chain undermine resource mobilization, which is key to building an effective and capable state. Corruption and tax evasion remain the major drivers of illicit financial flows and if unaddressed will continue to threaten sustainable development. The United Nations Economic Commission for Africa (UNECA) estimates that, over the period , more than half (56.2 per cent) of the IFFs from Africa came from the extractive sector and was highly concentrated in a few countries. The continent loses an approximately $50 billion annually through IFFs (UNECA, 2015). In fact, according to the Global Financial Integrity, the continent bears the most disproportionate burden of unrecorded cross-border financial outflows as a percentage of gross domestic product (GDP), representing approximately 8.6 per cent of GDP. There is need for national governments to address the growing inequality levels by ensuring and implementing adequate tax systems to address and secure domestic revenue mobilisation. Within the frame work of tax systems derives the social economic contract between government and the citizenry, within this contract the state is at obligation to ensure revenue is in turn used for redistribution, poverty reduction and social protection. In assessing the effect of the general flow of government services on economic growth. The correlation of revenue generation, collection and government expenditure spawn from the domestic productive sector through in this instance mineral resource as means revenue generation. The use of tax revenue generally is intended for use to fund public services and social protections as means to facilitate social economic rights. Revenue management to achieve fair and equitable distribution through strong and sustainable investment in social and economic development programs such as 3 P a g e

4 education, job creation and infrastructure development are proven pathways to redress inequality 3. Why Engaging the Youths Agenda 2063 of the African Union (AU) and the United Nations (UN) Sustainable Development Goals (SDGs) identify young people s role in Africa as vibrant and crucial. Envisioning a stable and prosperous Africa is the responsibility of young Africans, who account for more than 50% of the current African population. ZIMCODD believes that the youths are ready to lead the continent; young voices should be heard and acknowledged, and that the youth are the custodians of African centred solutions to Africa s problems. ZIMCODD and TJNA are grounded in the understanding that only a locally generated idea that connects Africa to the global community, and one led by Africa s youth, can ensure sustainable change. The Regional Debates and Public Speaking Gala is an opportunity for students in tertiary institutions across the SADC to learn about policy issues. The Debate will expose them to different material, especially that of a research nature. This would go a long way in giving them a glimpse into other perspectives especially on emerging link- topics such as gender and human rights, climate change, Free trade areas as well and most of all, make them aware of the responsibilities that await them as future leaders and decision-makers on the continent s prospects. The project seeks to strengthen youth participation in Natural Resources Governance in the SADC region to facilitate policy dialogue for people centred development. SADC has a young population, which has the potential to influence policy change and good governance in the region. Promotion of youth participation in all spheres of life in society and in decision-making processes at all levels can benefit both young people and the decision-making bodies including national Governments. Moreover, Involving young people in decision-making processes strengthens their understanding of issues at stake as well as their sense of responsibility towards being part of the solution. Project Goal The goal of the debates is to encourage vigorous debate on the role of youth in tackling illicit financial flows, climate change, Continental Free Trade Areas and to cultivate a distinctive youth voice on understanding and confronting challenges the continent is facing. 3 NCA regional strategy paper 4 P a g e

5 Objectives As the conversation shifts towards what needs to be done to finance Africa s structural transformation, it would be imperative to involve students in the relevant conversations so as to create greater momentum around the campaign. Specifically, the Moot aims to: Provide a platform for students to discuss and debate on national economic empowerment Cement ties with partners and academic institutions across the region. Increase the uptake of the Stop the Bleeding Campaign across the region. Expected Project Results Visible demand driven citizenry and communities participating in the policy formulation, implementation and monitoring processes in natural resources governance, including policies that combat Illicit Financial Flows (IFFs), unemployment and lack of equal distribution of revenue in the SADC Region Methodology and Format The debates will follow the British parliamentary style. The topics to be discussed would be selected from TJNA and ZIMCODD s focus areas. The students shall be provided with four weeks to orient themselves with the topics to be debated. The debates will include the following; Debate sessions between the two teams on the given topics. Plenary for the audience to interact and engage with the debaters on issues raised during the debate session. Responses from experts on topics to share knowledge on the debate topics This process will allow for critical engagements, it will allow for participants voices to be heard and incorporated into the final deliberations for input to the 2017 SADC People s Summit communiqué. Participants The debates will draw participants from the following countries; 5 P a g e

6 1. Botswana 2. Zimbabwe 3. Malawi 4. South Africa 5. Swaziland 6. Lesotho 7. Tanzania 8. Mozambique 9. Zambia 10. Angola Outputs 1. Initiated peer learning amongst participants from different countries across the regions of Africa, subsequently leading to the creation of students tax justice platforms in Southern Africa. 2. Better understanding of the tax justice concept on Illicit financial flows and how this can be applied in the Stop the Bleeding campaign in their respective countries. 3. Initiated a relationship with academic institutions with the long term aim of incorporating tax justice into the different curricula. 4. Impart university students with greater knowledge and understanding of the tax justice concept. 6 P a g e

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