Progressive taxation and philanthropy

Chenai Mukumba

Each has a role to play in redistribution and the securing of social benefit. Comparison of the two shows how these can sometimes be complementary. It should be both/and, not either/or

Tax Justice Network Africa (TJNA) is a research and advocacy institution that operates as a civil society organisation. Our mandate is to promote progressive taxation systems in African countries with a focus on curbing illicit financial flows from the continent. Our work fosters and is founded on the belief of a capable state that plays a crucial role in the provision of public services.  

Philanthropy allows wealthy individuals and corporations to quickly address specific societal concerns. For example, philanthropy has led to significant advancements in global health, education, and poverty alleviation in Africa including the eradication of polio through the Bill and Melinda Gates Foundation’s Global Polio Eradication Initiative, or HIV and AIDS through the distribution of antiretroviral therapy. African philanthropists Strive and Tsitsi Masiyiwa supported education for underprivileged children through The Higherlife Foundation, offering scholarships, leadership training, and mentorship. Philanthropy’s flexibility allows it to rapidly address needs where government resources and efforts are slow or fall short.  

But philanthropy has notable limitations. Given that it is premised on the concentration of resources within the hands of a few, it can reinforce power imbalances, allowing individuals within a society to determine where resources are directed based on their individual preferences rather than the needs of society. This leads to unaccountability, lack of transparency, and decisions driven by donor priorities rather than local needs. At times, dependency on resources from philanthropy can mean that funding is unpredictable and subsequently fails to address systemic issues comprehensively. Over the past few years, we have seen certain philanthropic organisations switch areas of focus or go through significant internal changes that ultimately affect the direction of resources towards a cause they might have identified and subsequently supported.  

 
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