Another factor is cutting down public sector wage bills. Archer explained that "The routine advice of International Monetary Fund (IMF) to countries is to keep inflation very low in single digits- much lower than what most economists believe is necessary. IMF was also telling countries to freeze or cut their public sector wage bills. In 78% of the countries we studied this freeze or cut on the public sector wage bill had happened. This is a serious issue as those on the public wage bills are teachers, doctors, nurses, healthcare workers, other essential frontline workers. So, if you follow IMF's advice you cannot recruit more of them who are needed to provide good quality public services."
low tax to GDP ratio
The third factor is the acutely low tax to GDP ratio (the amount of money
governments charge as tax) particularly in Asian countries, which prevents
governments from getting the revenue needed for investing in quality public
services. Archer shared that the global average of tax to GDP ratio in a
low-income country is 17%. But in Asia there are many countries having it far
below that. In Bangladesh, Pakistan, Myanmar and Cambodia it is below 10%;
India, Indonesia, and Philippines have it below 17%; Thailand and Vietnam are
doing slightly better. "In the rich countries the average tax to GDP ratio
is 34%, which means that they have a tax base which is double or triple as
compared to most Asian countries. You cannot provide universal public services
of good quality when your tax revenue is not sufficient", said Archer.
He suggests simple solutions to these problems: to renegotiate debts, to
resist policies of IMF and to increase tax revenue available for investing in
public services. This way countries can easily double their spending on health,
education and other essential public services in the next five years.
tax the corporates
Rosa Pavanelli added that "Governments should tax the multinational corporations (MNCs). IT sector, which has been making huge profits during this pandemic, should be taxed more. Globally financial institutions and governments should introduce a 25% tax for corporates. Fight against tax evasion and corruption should be part of this big plan to generate revenue and bring the economy back on its feet, post-COVID-19. Neoliberal system has shown its weaknesses and failures during COVID-19 management. Economic system needs deep reforms and not just patchwork remedy."
local public services are essential to local GDP
"Public services, especially at the local level, contribute to the local GDP. They are essential to support local economy and to support quality of life of the people. We have to work for strengthening dignity of workers in public sector. They are heroes who have to be celebrated everyday by recoginizing the dignity of their work with decent wages and working conditions, as they are the ones who are delivering fundamental human rights to all" added Pavanelli.
unpaid care and domestic work
Nisha Larma Arki, Women's Rights Head, ActionAid Nepal, pointed that
"Insufficient and underfunded public services have affected COVID-19
management in Nepal, impacting the lives of people, especially women. While
COVID-19 cases and deaths are few in Nepal, people are dying of other secondary
impacts - one of them being insufficient public health services. During
lockdown period there has been a 200% increase in maternal mortality, and also
an increase in domestic and sexual violence due to confinement in houses. Women
and girls are having limited or no access to basic health services, including
those for family planning (giving rise to unintended pregnancies) and for
pregnant women. Very few safe homes are functioning during the lockdown which
is severely limiting options to help domestic violence survivors. Very few
quarantine centres are gender-friendly and even cases of rape have taken place
in them."
Arki firmly believes that strengthening public services is important to
dismantle gender inequality and gender-based discrimination.
Archer too echoes Arki's sentiments: "Poor funding for public services
also abets gender inequality as the first sufferers are women who are in the
frontline of care giving. Their unpaid domestic work is never calculated. When
public services are not available, women and girls are forced to shoulder
maximum burden of unpaid care and domestic work, such as to care for the
children and the sick at home, collect water from faraway places and do other
chores. Where public services are available it gives them access to education
and decent work."
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