[ADDIS ABABA] Developing nations have abandoned their push to create a global tax authority during a key United Nations global development summit being held this week in Ethiopia, officials said on Thursday.
Poorer countries, as part of the 134-member G77 bloc, had been lobbying hard for an end to multinationals' profit-shifting, which the UN's trade and development body UNCTAD says costs poorer countries some US$100 billion a year.
They wanted a UN-managed intergovernmental body charged with overseeing a new set of global fiscal regulations to be created, replacing the current set-up where such matters are managed by the Organisation for Economic Co-operation and Development (OECD), the so-called "rich man's club".
Richer countries, led by Britain and the United States, were opposed to the plan - and the dispute has been at the centre of the summit.
Th United Nations hopes the summit, which has been tackling the question of how to fairly fill an estimated US$2.5 trillion development financing gap, will pave the way for a fairer world of inclusive, low-carbon growth, set out in its 2015-2030 Sustainable Development Goals.
The final text of the summit, obtained by AFP, shows developing nations dropped their demands for a global tax body, with the text only mentioning that a subsidiary committee of the UN's Economic and Social Council (ECOSOC) - which only has a consultative role.
It says members of this committee will in the future be appointed by their governments and that it will be more geographically representative.
The final text from the summit, the third of its kind after talks in Monterrey in 2002 and Doha in 2008, is expected to be formally adopted later Thursday.
This in turn will enable the world body to push ahead with its 2015-2030 Sustainable Development Goals, which are due to be formally adopted in New York in September. There are 17 in all, ranging from ending poverty to providing universal access to sustainable energy.