Financing the global sharing economy

Page 16

Sharing is a natural human behaviour that families and communities have practiced since the dawn of civilisation, and it still informs and influences many spheres of modern life – from co-operative enterprises and ‘land share’ schemes to open software development and social networking. Yet one of the most important expressions of sharing today in the field of politics and economics often goes unacknowledged. Arguably, modern systems of social welfare are the most advanced forms of sharing ever established, and the vast majority of people in developed countries are instrumental to their proper functioning.1 Systems of welfare are essentially complex ‘sharing economies’ that exist in a variety of forms throughout the world.2 The principle of sharing underpins how they work by ensuring that members of society take collective responsibility for securing basic human needs and rights for all citizens. Through the process of progressive taxation and redistribution, we share a portion of the nation’s financial resources (personal income and assets, as well as company profits) for the benefit of society as a whole. In most developed countries, governments redistribute a large proportion of tax revenue to ensure that the wider population can access healthcare, education and other important forms of social security. Social welfare systems in developed countries are far from perfect and not always efficiently administered, but they represent a natural evolution of the human propensity to share that builds on practices that have been familiar to people for millennia. They are also an expression of social justice, solidarity and equitable wealth distribution that can reduce inequalities and strengthen social cohesion within countries.3 Moreover, systems of welfare are widely supported by many millions of people who have long recognised the role that an effective sharing economy can play in creating a fairer, more just and healthier society. Scaling up sharing between countries However, the process of establishing and strengthening the sharing economy is still in its infancy in some parts of the world. Many low-income countries do not have the resources they need to build effective systems for redistributing wealth and income through taxation and the provision of public services. In many cases, developing countries also suffer additional social, environmental and financial problems that further hinder their economic development. These realities point to the urgent need for scaling up sharing between countries as well as within them. In the globalised modern world, each nation’s prosperity ultimately depends on its relationship with other nations. Rich countries therefore have a responsibility to do much more to assist poorer nations to strengthen their domestic systems of redistributive taxation and social protection, so that governments can at least meet the basic needs of their citizens and facilitate economic development. Unlike the practice of sharing within countries, there is no equivalent system of taxation or public spending at the international level that can provide the level of support that developing countries urgently need.4 The main exception is the international aid provided by donor countries each year, known as Official Development Assistance (ODA).5

Part 1: The sharing economy

18


Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.