Human Rights Watch (HRW) said on Thursday that the United Nations Fourth International Conference on Financing for Development (FFD4) should focus on promoting international tax cooperation to ensure the realization of human rights worldwide. The rights group contended that protecting human rights and achieving the Sustainable Development Goals requires a fair taxation system and urged countries to support the UN global tax treaty, which is currently under negotiation.

The FFD4 represents an opportunity to reform a flawed international tax system that deprives many countries of essential tax revenues. The shortfall undermines nations’ ability to provide crucial services and denies populations basic human rights, such as access to healthcare and education. HRW argued that significant change is possible through the establishment of an international treaty aimed at fostering coordination in international tax policy, known as the UN Framework Convention on International Tax Cooperation. Convention participants aspire to close gaps in existing tax systems that prevent many countries from collecting sufficient revenue.

The group stated that international tax practices also inhibit governments from raising revenue needed to enhance the protection and realization of human rights and argued that the issue prevents millions from accessing quality health services and education. This particularly occurs in Global South countries, including many in Africa, which incur substantial financial losses that hinder their ability to meet minimum spending requirements for healthcare and education.

Experts pointed out that tax avoidance remains a critical problem. New labor models and an increasing number of tax havens worldwide have made the practice more prevalent and easy to commit. For instance, new labor models, such as platform work, enable companies to avoid paying taxes on social security contributions while building billion-dollar industries, ultimately undermining funding for public services. Additionally, multinational companies often circumvent the law and evade taxes by shifting profits to tax havens.

HRW stressed that equitable global tax rules are essential for fostering “human rights economies,” and tax cooperation is crucial for fulfilling international human rights obligations as it enables governments to raise revenue needed to promote these rights and reduce inequalities.

The FFD4 is set to take place on June 30 and aims to discuss reforms in financing at all levels while addressing barriers that hinder reaching the UN Sustainable Development Goals. Attendees will also deliberate on how to implement the outcome document of the UN conference, known as the FFD4 Outcome Document. The document outlines commitments that States must adhere to in order to reach sustainable development goals and protect human rights. Commitments include implementing various reforms to ensure that countries possess the necessary resources to protect human rights and finance sustainable development projects. Specifically, these reforms call for ensuring transparency and accountability in public financial management, boosting investment in sustainable development, and fostering more inclusive global economic governance by increasing the representation of developing countries in norm-setting and decision-making within international economic institutions.