Finding the Lost Sheep: Analyzing the Disconnect between International Tax Cooperation and Its Ought-to-be Goals and How to Fix It

Abstract

countries (LMICs) in the international tax regime (ITR). It argues that the fundamental challenge for LMICs is the disconnection of the ITR from the broader mandate of the League of Nations, which is the enabling institution for the ITR. The actors who designed the ITR completely ignored the connection between the ITR and the League's peacemaking mandate. The thesis not only provides compelling reasons why the actors should have considered the relationship between the ITR and peacemaking but also shows that the ITR is indeed connected to global peace and security. It further argues that global peace is only achievable by addressing issues affecting the stability and functionality of countries needed to promote global peace. Countries should be able to ensure their continued existence (sustainability) and ability to provide for the basic needs of their citizens (human rights) before they can be expected to promote global peace. Therefore, the thesis proposes that the ITR should be redesigned to consider global peace, stability, and functionality (referred to as the global stability variables) of the participating countries. It also proposes a network of actors that can drive these objectives. Proposing this ecosystem of actors becomes essential to this work, having found that the disconnect between the ITR and peacemaking was caused by the sensemaking of the actors involved in the ITR. For LMICs to benefit from the ITR, the actors designing the ITR must consider the global stability variables. The contention of the LMICs against the two-pillar solution developed by the OECD to address the consequences of the digitalized economy is proof that inclusivity, lack of expertise, and reliance on foreign aid, among others, are not the only problems of the LMICs. Though the thesis argues from the perspective of the LMICs, its solution is mutually beneficial to both LMICs and high-income countries. The proposal offers an alternative approach to the current ITR and can potentially solve global problems, including food scarcity, climate change financing, and housing crises. Given the concerns around the OECD’s two pillars, this thesis argues that the stakeholders should pause on all these pillars and consider the forgotten pillar of peacemaking in the ITR.