Social spending is a key ingredient for fostering inclusive growth and stable societies. The panel discussed how countries can raise more resources for social spending and best practices to ensure that social spending is adequate, efficient, and financially sustainable.

Key Points:

• Financing social spending. Panelists agreed on the importance of progressive tax systems in providing adequate resources for social spending. Byanyima, Goldin, Swan noted the need to address the race to the bottom of taxation, one of the failings of globalization. Greenfield stressed the role of the private sector in supplementing financing for social spending, while Byanyima cautioned that private solutions often hurt those on the margins of society.
  
  
• Success stories. Swan underscored that, in terms of best practice, equity in tax systems and expenditure is critical for ensuring buy-in for tax reform. Goldin highlighted Denmark and France as good examples of countries that have been able to successfully tax and redistribute income, positively impacting the lives of their citizens. Byanyima noted that Ethiopia, even with its limited resources, was successful at expanding education to all children. 
  
  
• Role of key stakeholders. Byanyima urged the Fund to do more to safeguard social spending in times of austerity and to move away from advising countries to adopt consumption taxes. Greenfield highlighted the focus of the ILO on universal social protection and noted the need for the ILO to accelerate its programs. Goldin observed that academia, because of its long-term view, is well placed to look at the global experience and help countries take advantage of lessons learned in providing effective social spending.