THE ELEPHANT: The Next Emergency – Building Resilience through Fiscal Democracy

Are East African countries ready to face the next crisis or are they simply keen to go back to how things were? What does a new normal mean when speaking about public finance management (PFM)? In continuing the struggle for structural transformation, economic justice efforts must work towards developing a new citizen and preparing for unpredictable or unforeseen events, more so those with extreme socio-economic and political consequences. This is because, besides known challenges posed by existing inequalities, the COVID-19 pandemic has pointed out how “unusual circumstances such as man-made disasters, natural catastrophes, disease outbreaks and warfare … depress the ability of citizens to engage in economic activity and pay taxes as well as that of governments [capacity] to collect revenue [or] provide services”.

Such circumstances therefore demand more inclusion of human rights-based approaches in economic justice efforts to champion greater fairness within existing financial architecture. Disasters should, therefore, not obliterate human rights but should heighten the need to respect, protection, and fulfilment of obligations through prioritizing expenditure on service delivery, as well as all elements of Economic, Social and Cultural Rights (ESCRs) to “boost the capacity of residents to withstand shocks” by improving coping mechanisms. Promotion of fair taxes among other broader economic justice initiatives within PFM should consequently adapt towards championing ESCRS within the context of more disruptive and unexpected incidents. Crisis is constant in the new normal.

Fiscal democracy and civil protection: Recovery, resilience, and transformation Currently, conversations on recovery are focused on tackling reduced tax collection; slowed growth; depressed formal or informal productivity; exploding unemployment; diminished remittances; persistent poverty; decline in energy access; and escalating food insecurity. This emphasis seeks to reverse the effects of various lockdown policies that placed restrictions on businesses, mobility, movement within and across international borders, [plus] public gatherings. However, it speaks mostly of a desire to return to pre-COVID levels of economic activity while vital systems in tackling the next crisis such as water, education, or health remain unaddressed. Economic justice initiatives should therefore embrace fiscal democracy and civil protection as goals or appendages in achieving the structural transformation agenda. This will then speak to the resilience, and transformation needed to ensure PFM works for Africans in good times or bad.

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