A/HRC/26/28 exercise the right to self-determination and the right of all persons to take part in the conduct of public affairs.67 In this regard, it will also be crucial to build public confidence that these resources are being well used by, for example, increasing public participation and oversight of budgeting and expenditure. 53. Income distribution and its management through taxation also have a crucial relationship with democracy. Growing income disparities can serve to polarize and fragment societies, which can ultimately lead to alienation and social unrest.68 VI. Strengthening revenue raising through a human rights-based approach 54. In order to realize the potential of taxation to fulfil the above-described functions to the greatest possible extent, there are several actions that States should take. These measures are examined from the human rights perspective below. A. Widening the tax base and improving efficiency 55. In some States, despite significant efforts to increase revenue through taxation, the amount actually collected is demonstrably inadequate to realize human rights. In Latin America and the Caribbean, for example, most States have tax ratios that are clearly lower than they should be when their level of development is considered.69 It is however crucial that taxes be raised and collected in human rights-compliant ways, where those who can least afford it are not asked to pay more (see paras. 45 – 50 above). 56. Evidence shows that, even in developing countries, widening tax bases and improving tax collection efficiency could raise considerable additional revenue.70 For instance, if all developing countries were able to raise 15 per cent of their national income in tax, a commonly accepted minimum figure (the OECD average is 37 per cent), they could realize at least an additional $198 billion per year, more than all foreign development assistance combined.71 57. Tax collection efficiency can also be increased by improvements in tax administration. Tax administrations with appropriate financial, personal and technical resources are critical to increase levels of revenue collection and to avoid abuse. Lack of investment in tax authorities is therefore a short-term false economy, with negative implications for the enjoyment of human rights. It is also crucial that tax authorities be perceived as being independent, fair, transparent and accountable. 67 68 69 70 71 14 International Covenant on Civil and Political Rights, art. 25. See also A/HRC/23/36. Department of Economic and Social Affairs, Inequality Matters (see footnote 43), p. 22; IMF, Fiscal Policy and Income Inequality (see footnote 43), p. 4. The average tax ratio in Latin America is 18 per cent of GDP. ECLAC, Time for Equality (see footnote 42), p. 228. See IMF, Revenue Mobilization in Developing Countries, 8 March 2011, p. 17; UNDP, What will it take to achieve the Millennium Development Goals? An International Assessment, June 2010, p. 26. ActionAid, Accounting for Poverty: How international tax rules keep people poor, 2009, p. 5.