The World Social Forum in Nepal is an Open Space of social movements, NGOs, civil society organisations, trade unions, citizens who demand that “Another World is Possible”.  We believe that ending austerity is central to the aims of this assembly gathered in Kathmandu 15-19 February, and this is why we call for immediate attention to the crisis of austerity that is only getting worse, and demand for immediate action on many alternatives that exist to austerity.

Today, more than 6 billion people are suffering from austerity, so-called “fiscal consolidation” according to a recent study by the EndAusterity Campaign. We demand that governments immediately stop harmful public budget cuts in essential areas like education, health and social protection, and halt damaging reforms such as the privatization of public services and social security rights, which are exacerbating gender inequality, as women are the shock absorbers due to the subsidy they provide to the global economy through their unpaid domestic and care work. Instead of austerity cuts/reforms, governments must seek new sources of fiscal space to meet their Human Rights obligations and achieve the UN Sustainable Development Goals.

Specifically, we, the undersigned social movements, civil society organisations, trade unions and academics demand that governments, regional organisations and multilateral organisations urgently:

1. Stop cutting much needed social protection, education, health, public transport, housing and other social programmes;

2. Stop cuts to the public sector wage bill, in particular for the number and salaries of teachers, health and social workers, as well as civil servants at the local level;

3. Stop reducing subsidies that support households;

4. Stop pensions and social security reforms that result in lower support, and avoid reducing employers’ contributions to social security to ensure that systems are equitable and sustainable;

5. Stop labour flexibilisation reforms;

6. Stop privatisation and public-private partnerships in socially relevant areas;

7. Stop adherence to private finance first approaches;

8. Stop any other budget cuts or reforms with negative social impacts, particularly on women.

Instead, we urge governments, regional organisations, and multilateral organisations to implement financing alternatives, mainly:

1. Increase progressive taxation on corporations, the financial sector and the rich, including corporate and personal income and wealth taxes, excess profits taxes, taxes on windfall profits, digital services taxes on corporations, and financial transaction taxes; instead of regressive taxes such as VAT/ Sales taxes;

2. Fight Illicit Financial Flows (IFFs), tax abuses, and financial secrecy especially in tax havens that contribute to IFFs by opening up beneficial ownership registries for public access, publishing all tax reporting by corporates on a public country-by-country basis, and ending the impunity of tax havens and enablers who facilitate financial secrecy, and tackling trade mispricing;

3. Review, cancel and stop signing harmful tax agreements such as bilateral tax treaties and harmful tax incentives to corporations and wealthy individuals;

4. Reduce / eliminate sovereign debts, so debt service does not reduce social expenditure.

5. End harmful fiscal ceilings or fiscal rules that don’t allow investing public resources to fight the climate emergency or inequality;

6. Increase employers’ contributions to social security to ensure the sustainability of social security systems, and formalize workers in the informal economy with decent contracts;

7. Tap into fiscal and foreign exchange reserves, so that national savings are invested in people, realisation of human rights, and sustainable development today;

We, members of civil society organisations and social movements feel that these changes are not only urgent and necessary, they are also realistic to implement here and now at all levels.  These decisions affect the lives and livelihoods of billions of people, but decisions are often taken behind closed doors in international financial institutions (IFIs), and in ways that do not engage the public, and more over those marginalised.   Similarly, negotiations concerning international tax treaties, international tax governance, debt governance and debt restructuring also lack transparency, participation and effective citizen engagement.  

Learn more about the End Austerity Campaign: https://endausterity.org/ 

PLEASE SIGN THE DECLARATION AS AN ORGANIZATION OR AS AN INDIVIDUAL

• Jomo Kwame Sundaram,  former economics professor, was UN Assistant Secretary-General for Economic Development
• Walden Bello, former Executive Director of Focus on the Global South
• Eric Toussaint, Spokesperson of Cadtm International Network
• Varsha Gandikota-Nellutla, Co-GeneralCoordinator, Progressive International
• Anselmo Lee, Coordinator Asia Civil Society Partnership for Sustainable Development
• Leo Gabriel, Assembly of the World Social Forum
• Tord Bjork, Coordinator EU-Committee, Friends of the Earth Sweden
• Thomas Wallgreen, Professor, Finland
• Pierre Johnson, France
• Danny Singona, DR Congo Social Forum
• Nguyen Thi Lan Huong, Independent Expert, Vietnam
• ...