Inequality research and policy support for a more inclusive fiscal system

Following the success of the Facility's first phase, AFD and the European Commission have agreed to continue the programme in a second phase: the Extension. Financed with 3 million euros by the Directorate-General for International Partnerships (INTPA), this new phase was officially launched at the Final conference of the first phase in March 2021, and is scheduled to continue until 2025.

The Extension intends to support four partner countries - Colombia, Indonesia, Mexico, and South Africa - in formulating policies to reduce inequalities in the context of the 2030 Agenda. 

The policies developed under the Extension will be the result of a close dialogue with the governments and will be based on research conducted with local research centers. These policies will also build on the results achieved so far by the Facility, both in terms of methodologies developed and synergies established. In the short and medium-term, this research-based programme will enable partner countries to enhance their understanding of specific factors leading to inequality and identify possible solutions that could be implemented to better respond to the challenge of lowering inequalities through effective public policies.

The Extension will work within a common framework in the context of each country. Like the first phase of the Research Facility on Inequalities, it will focus on research that more deeply investigates inequality issues, but in addition will support these four partner countries in formulating policies enabling inequality reduction.

Image

Studies and consultations conducted over the 2021-2022 period, as well as ongoing research, have identified sectoral and policy priorities for each project:

• Colombia: Inequalities’ research and policy support for a more inclusive tax system
• Indonesia: Inequality and environmental sustainability, with support in the implementation of Marine Protected Areas
• Mexico: Labour market, care economy and environmental taxation through the lens of inequality
• South Africa: Sustainable Recovery and Just Transition

Each of these themes will be explored in greater detail in the coming months in order to identify public policy scenarios that will then be validated by the partner governments, and whose implementation will be supported at the end of the programme.

The benefits of continuing forward with the Extension phase are many. Basing initiatives on the research results and methodologies of the first phase, AFD and the European Union will ensure that the Extension programme has a tangible impact and is leveraged for profound change in the four countries. The synergies identified and developed at the European level since research began in 2017, as well as intra-national partnerships and solution building, will be built on to create lasting policy and dialogue outcomes.