Statement by the International Presentation Association, an NGO in Special Consultative
Status with ECOSOC
Consultation on the ‘Report (HRC/15/41) of the Independent Expert on the question of
human rights and extreme poverty on the draft guiding principles on extreme poverty and
human rights’
Rights based Social Protection
In her report to the General Assembly on the question of human rights and extreme poverty
A/65/2591, the independent expert has highlighted the importance of social protection measures
in the Millennium Development Goals agenda. The independent expert has also stressed that
social protection measures designed, implemented and evaluated within the framework of a
rights- based approach are more likely to ensure the achievement of the Goals and to result in
long-term improvements. The independent expert in the same report called on States to devote
increased attention to the issue of gender equality while designing, implementing and evaluating
social protection programmes within a human rights framework.
She has stated that Social protection contributes to the achievement of Millennium Development
Goal 1 (eradicate extreme poverty and hunger) by transferring resources to those living in
extreme poverty, enabling the beneficiaries to generate income, protect their assets and
accumulate human capital.2 Many studies note the potential of social protection initiatives to
promote progress towards the achievement of Millennium Development Goal 1, in particular
target 1: halving income poverty by 2015.
The Resolution A/RES/65/2143 adopted by the UN General Assembly on Human Rights and
Extreme Poverty recalls that promoting universal access to social services and providing social
protection floors can make an important contribution to consolidating and achieving further
development gains. Furthermore this social protection system that addresses and reduces
inequality and social exclusion are essential for protecting the gains made towards the
achievement of the Millennium Development Goals. The Resolution also encourages States
when designing, implementing, monitoring, evaluating social protection programmes to ensure
gender mainstreaming and the promotion and protection of all human rights in accordance with
their obligations under international human rights law, through this process.
During the 49th Session of Commission for Social Development, there was much interest shown
around ‘Social Protection’ as an emerging issue. The NGO Committee on Social Development
strongly supports the Social Protection Floor Initiative – a joint UN effort spearheaded by the
ILO, and supported by numerous UN agencies, international NGOs, development banks and
other development partners. The concept of a social protection floor is very clear. No one should
live below a certain income level and everyone should be able to access at least basic health
services, primary education, housing, water, sanitation and other essential services. Along with
1
http://daccess-dds-ny.un.org/doc/UNDOC/GEN/N10/478/79/PDF/N1047879.pdf?OpenElement
World Bank, The Contribution of Social Protection to the Millennium Development Goals (2003); United Nations Development
Programme (UNDP), What Will It Take to Achieve the Millennium Development Goals? An International Assessment (2010)
3
http://daccess-dds-ny.un.org/doc/UNDOC/GEN/N10/525/38/PDF/N1052538.pdf?OpenElement
2
universal access to social services, Social Transfers, in cash or kind, guarantee income security,
food security and adequate nutrition.
About 75 percent of people in the world are still not covered by adequate social security. Lack of
social protection is a liability that undermines social cohesion, economic performance and
creates political and institutional instability. In a world of growing inequality this floor is a
necessary tool in eradicating poverty. It helps governments to build more inclusive national
development plans which put people at the centre.4
At a press conference at the UN Headquarters, New York on 14th February 2011, Michael
Cichon, Director of the ILO’s Social Security Department said stakeholders seemed to have long
forgotten that social security was indeed a human right... He stressed that implementing the
Social Protection Floor Initiative in a developing country with an expenditure as little as 3 to
4 per cent of gross domestic product could reduce the poverty head count by about 40 per cent.5
We propose that countries that lack sufficient revenue to manage the Initiative from domestic
revenues be supported by the international community from the sources of innovative financing
mechanisms.
Innovative financing mechanisms emerged at the beginning of the twenty-first century and since
then have been in conversations at the United Nations. During the 2011 Special High Level
Meeting of ECOSOC, UNCTAD, WTO and the BWI, the NGO Committee for Financing for
Development has recommended the following five innovative sources of financing for
development- Financial Transaction Tax, International Solidarity Levy on Airline Tickets,
Combat Tax Havens and Capital Flight, Debt Swaps, Reduce Military Expenditures 6.
Therefore, we call upon the UN Member States and the International Community to take
into consideration the following recommendations to overcome extreme poverty through
rights based social protection measures
4

ensure that the UN Member States who have not yet done so, invest domestically a
minimum of 4% GDP towards rights based universal Social Protection Floor Initiative;

implement further the suggested innovative sources of financing for development Financial Transaction Tax, International Solidarity Levy on Airline Tickets, Combat Tax
Havens and Capital Flight, Debt Swaps, Reduce Military Expenditures;

support with resources from innovative financing mechanisms the UN Member States
who lack sufficient revenue to manage universally the Social Protection Floor Initiative
from domestic revenues.
Social protection Floor Campaign material
http://www.un.org/News/briefings/docs/2011/110214_ILO.doc.htm
6
http://www.un.org/esa/ffd/ecosoc/springmeetings/2011/NGO1.pdf ( see box below please)
5
Currency Transaction Tax and Financial Transaction Tax
At issue is how to find significant and stable new sources of funding for development. Both of these taxes envision levying
small taxes on the financial sector. However, given the size of transactions being taxed the resulting revenue would be both
significant and stable.
The currency transaction tax (CTT) would levy a very small proposed rate with the intention of not disturbing the global
market for major currencies. Depending on the actual rate used, revenue estimates for this tax range between US $24 billion
and US $300 billion.
The Financial Transaction Tax (FTT) envisions a broader scope for the tax than the CTT. One version calls for a levy of
0.05% to be applied to various categories of financial transactions including stocks, bonds and currency. This would be
imposed on both domestic and international transactions. With global agreement, this tax could raise between US $600-700
billion.
We urge governments to implement an international FTT with an explicit development component.
We urge governments to support domestic efforts to implement versions of the FTT again with a development component and
building on experiences in various countries.
International Solidarity Levy on Airline Tickets
The purpose of the International Solidarity Levy on Airline Tickets is to tax individuals who take a flight out of specific
countries that have implemented the policy, and then transfer the money to development projects.
Most of the money from this tax goes to UNITAID, which is the United Nations international drug purchasing facility for
medicines related to HIV/AIDS, Malaria, and Tuberculosis.
This innovative tax is easy to implement, has seen a great deal of success, supports development and cooperation between
nations, and it provides a long-term and stable source of funds while supplementing ODA requirements
Tax Havens and Capital Flight
Capital flight and tax evasion continue to drain much-needed resources for development. Tax Justice Network estimates the
amount of funds held offshore by individuals is about $11.5 trillion with a resulting annual loss of tax revenue on the income
from these assets of about 250 billion dollars. This is five times what the World Bank estimated was needed to address the UN
Millennium Development Goal of halving world poverty by 2015.
 Capital flight and other illicit transfers of funds must be combated: There needs to be an automatic exchange of tax
information between governments. Transparency, supervision and regulation are essential in institutions such as
hedge funds, private equity and sovereign wealth funds. Cross-border tax evasion should be treated as criminal
activity and tax havens must be closed. The "United Nations Committee of Experts on International Cooperation in
Tax Matters" should be strengthened and upgraded into an intergovernmental body. Its agenda should include
measures to combat capital flight and tax evasion and also measures to assist developing countries to improve their
tax administration. In the long run a World Tax Organization should be established.
Debt Swaps
Debt Swaps represent an innovative approach to cancelling debt in the developing world, while, at the same time, providing
additional resources for socio-economic development projects. It cancels external debt in exchange for the debtor
government's commitment to mobilize domestic resources for specific development rather than debt repayment. The debt
swap process is applied through three-way agreements, overseen by a multilateral organization which results in multiple
benefits for all parties.
We urge governments and institutions to study the multiple benefits of such Debt Swaps as Debt2Health (a Global Fund to
Fight AIDS initiative) and to participate in this initiative or similar ones.
Reduce Military Expenditures
According to the Global Issues' website, over the past decade, there has been a 45% increase in global military expenditures.
Hunger, violence and climate change, etc. have also increased at an alarming rate. We strongly recommend reducing military
spending and redirecting a significant portion of military expenditures to social development especially to poverty reduction.
In his remarks to UN Security Council “informal informal” Youth Session, New York, 21 December 2010, the SecretaryGeneral stated, “Every year, the world spends $1.4 trillion dollars on weapons. With a fraction of that we could cut poverty,
fund schools, provide health care, and protect the environment. One year of global military spending could pay the UN’s
budget for 732 years”. The estimated cost of achieving the MDGs is $135 Billion. Therefore, we strongly recommend that all
nations reconsider their military spending and reallocate more money to poverty eradication.