Caribbean economist Marla Dukharan has strongly criticized the European Union’s recent decision to blacklist Vanuatu over concerns regarding tax governance and financial regulation. In statements made during a recent interview, Dukharan described the move as discriminatory and immoral, emphasizing that it reveals a pattern of bias against countries that are not predominantly wealthy or white.
Dukharan urged Vanuatu to embrace the United Nations (UN) Convention on Tax, which seeks to foster global tax cooperation and provide a platform for all nations to have a voice in international tax discussions. She lamented the lack of engagement from Pacific and Caribbean nations in supporting this initiative, highlighting its potential to level the playing field in tax matters across the globe.
“Being labeled as blacklisted inflicts long-term reputational damage,” Dukharan warned. She cited the Caribbean example, noting how the costs associated with cross-border transactions can soar when countries are blacklisted, citing that transferring funds between Trinidad and Jamaica can be much more expensive than doing so from the U.S. to the U.K. Furthermore, she pointed out that such designations restrict banking options and complicate business operations.
Dukharan also expressed concern over the limited awareness among nations about the UN tax convention. She criticized higher-income countries for blocking media coverage, inhibiting broader understanding and support for the initiative.
Highlighting Vanuatu’s economic landscape, Dukharan explained that imposing income or corporate taxes in a largely subsistence agriculture-based economy could pose significant problems. She noted that transitioning to comply with global minimum tax standards could take decades for Vanuatu, urging its policymakers to engage in discussions that clarify their unique context.
She further observed that until Russia’s addition in February 2022, no predominantly white country had ever been blacklisted by the EU, arguing that this indicates institutional discrimination based on both ethnicity and economic influence.
Dukharan has recommended that Vanuatu consider approaching the International Court of Justice (ICJ) to challenge its blacklisting. She compared Vanuatu to other nations, like the Vatican, that have faced similar allegations but have not been subjected to the same scrutiny, emphasizing the uneven application of international standards.
In light of these challenges, Dukharan is calling for increased awareness and alliance among small and developing states that face unequal treatment within the global financial system. Her suggestions come at a time when Vanuatu, facing international scrutiny regarding its economic policies and citizenship programs, is navigating a complex global landscape.
The overall tone of Dukharan’s remarks conveys a sense of urgency for more equitable treatment in international finance while also suggesting a pathway forward for Vanuatu to improve its situation on the global stage. By actively participating in tax discussions and promoting awareness of available international platforms, Vanuatu has the opportunity to strengthen its international reputation and foster more cooperative relationships globally.
This renewed focus on advocacy, unity, and engagement among developing nations offers hope for a more fair and balanced global economic environment, where all countries can thrive regardless of their historical or economic context.
This article highlights not only Vanuatu’s struggles but also the broader implications for small nations and the need for equitable treatment in international governance. Dukharan’s insights inspire a positive outlook for future reforms and collaborations aimed at achieving global economic equity.
Leave a comment