fiscal reform that could threaten their privileges.75 The myth according to which low rates of corporate
taxation are a condition for attracting foreign capital persists, despite the wealth of studies that have
demonstrated the opposite -- that investors care more about the quality of the workforce and of public
service, the quality of governance, and economic factors such as market size and trade openness. Some
governments still do not accept the idea that the efforts of poor countries in combating tax evasion should
be supported by rich countries, not only by ODA going to improving governance, but also by more
structural measures concerning the removal of any loophole facilitating the practice of tax evasion.
While tax evasion is criticized, at least rhetorically, tax optimization techniques and the widespread use
of price transfer mechanisms by transnational corporations have only recently been evoked as a problem
at the highest political level, leading to the adoption within the OECD of the action plan against base
erosion and profit shifting (BEPS). It shall be the responsibility of the Committee on Economic, Social
and Cultural Rights to continue to insist on such obstacles being removed, on such myths being
dissipated, and on such pledges being kept.
75 See, e.g., Martin Gilens, Affluence & Influence: Economic Inequality and Political Power in America (Princeton University
Press, 2012); Martin Gilens and Benjamin Page, 'Testing Theories of American Politics: Elites, Interest Groups and Average
Citizens", Perspectives on Politics, vol. 12(3) (2014), pp. 564-581.
21
CRIDHO Working Paper 2017/1
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