Chapter 4 | Page 164 has been shown that, unlike in developed countries, lowering of business tax rates has actually resulted in a reduction in total revenue.111 National-level work in the area has been boosted by recent developments in the multilateral system to address tax justice, including campaigns by the Global Alliance for Tax Justice and the newly adopted Lima Declaration on Tax Justice and Human Rights. Yet effective enforcement of tax compliance, especially by large multinationals, still remains a significant challenge for both developed and developing States.112 For these reasons, States must take deliberate, concrete and targeted steps, separately and jointly through international co-operation, in matters relating to bilateral and multilateral trade, investment, taxation finance, environmental protection and development cooperation.113 4.3.2.3 Managing debt sustainability As noted above, debt and deficit financing are essential components of public sector revenue generation.114 However, it is important to balance the need to provide for the ESC rights of the people with repayment of the State’s debt. Debt burden has negative effects on the protection of ESC rights, not only in the form of debt repayment, but also because it limits the policy flexibility of the debtor country.115 In relation to potential violations of ESC rights resulting from sovereign debt, some argue that if countries with insufficient resources for debt servicing and 111 Itriago, above n 18, 6. 112 The ongoing Senate inquiry into corporate tax avoidance in Australia is a case in point. Submissions to the inquiry reveal the seriousness of transfer pricing, base erosion and profit shifting activities by large multinationals and the challenges faced by the Australian Tax Office in effectively addressing these practices. This is illustrative of how difficult it would be for developing countries to address issues of this nature. 113 See for example, Global Alliance for Tax Justice, Make multinationals pay their share! With tax justice we can make a fairer world <http://www.globaltaxjustice.org/>. 114 There are dissenting views on the level of government borrowing and debt among different schools of economic thought. For example, while neoclassical economic view supports and advocates the balanced budget and maintaining a low debt/GDP ratio, Keynesian view supports deficit budgeting and borrowing, particularly in relation to the economic condition and public policy goals. 115 Michalowski, above n 57.