12
Mar

Financial Alternatives for Development Aid (3)

Written on March 12, 2007 by Max Oliva in Development

J.Pozuelo-Monfort, MSc candidate in economic development at LSE.
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Taxation of personal wealth: a concept of global justice
The economies of the industrialized nations that integrate the steam machine of the capitalist system, in which the developing economies conform the last wagon, have robust taxation systems that enable the public administrations to raise taxes efficiently, through the progressive taxation of the economic activity of individuals with different income levels, who enjoy the stability provided by the well-known welfare state.
A taxation system based to a certain extent on the principle of redistribution, a principle that penalizes with higher rates the otherwise richer individual, who also has higher income levels. A taxation system, based on the principle of solidarity among the high and low incomes, that implies a shift of resources between those who have in excess (high income individuals) and those who lack them (low income individuals).
A current society in which we do not decide where we are born. A current society in which we do not decide when we are born, how much we inherit from our ancestors, or with what talents we count on to fight for a piece of that cake called market. A society that has so far been solidary at the nation-state level, and in the case of the European Union at a continental level.
A current society, that of the so-called rich or industrialized world, that cannot continue looking in the wrong direction, and must face the extreme inequality in income and wealth between the first and third world. A trend that has only worsened and seems to reach no inflection point, a necessary inflection point.
Continue reading Decem 03 Download file
About Decem: Series of articles fundamentally innovative that aim at the proposal of alternative financial mechanisms to considerably raise the amount of funds available for development in the third world. Throughout the series of 10 articles, J.Pozuelo-Monfort will stress the implementation aspects of the suggested ideas and will propose arguments for and against.

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