A/HRC/23/54 Saldanha reiterated her argument in favour of using an FTT to generate revenues for the post-2015 development agenda and proposed as a first step that the Human Rights Council initiate a study of the issue. G. The international financial system and enhancing a globally enabling environment for development 42. Isabel Ortiz, Associate Director of the United Nations Children’s Fund, summarized two recent publications she had worked on: A Recovery for All: Rethinking Socio-Economic Policies for Children and Poor Households and “Be outraged: there are alternatives”. The publications analysed the social impacts of the financial and economic crisis and suggested socially responsible approaches to recovery. In her presentation, the Associate Director illustrated the dramatic inequality between the richest and poorest quintiles of the world population, rising unemployment and cuts to public expenditures. She argued that prevailing macroeconomic policies, which valued labour flexibility and reflected the demands of international financial institutions, threatened people’s livelihoods. For example, implementing austerity measures in response to crises reduced social protections when they were most needed and exacerbated inequalities. Instead, Governments should consider alternatives including reallocating expenditures, increasing tax revenues, lobbying for aid/transfers, tapping into fiscal and foreign exchange reserves, borrowing, restructuring existing debt and transforming the financial sector to respond to the needs of the real economy. She emphasized that there were viable, rights-based alternatives to the current austerity response to financial crises that could address inequality, promote an equitable recovery and maintain and improve social protections. 43. Collins Magalasi, Executive Director of the African Forum and Network on Debt and Development, discussed excessive sovereign debt as a problem of developed and developing countries alike. The Euro zone crisis revealed the social and political consequences of excessive sovereign debt and the increased vulnerability of all States to debt crises as a result of the financial crisis. He argued that current lending practices were biased toward creditors, permitted irresponsible lending, failed to adequately consider human rights and development implications and had contributed to a significant rise in sovereign debt disputes, including disputes between developing countries. These concerns illustrated the need for an international mechanism to comprehensively and effectively address sovereign debt problems. He recommended setting up an independent, fair and transparent sovereign debt arbitration mechanism and adopting principles for responsible borrowing and lending in line with those recommended by the African Forum and Network on Debt and Development, the European Network on Debt and Development, or the United Nations Conference on Trade and Development in this area. 44. Manual Montes, Senior Adviser on Finance and Development at the South Centre, claimed that current financial rules were inimical to economic development in poor countries. Dependence on volatile private financial flows restricted the policy space of developing States, as entrenched commercial interests advantaged by existing financial rules obstructed policy changes. The global system encouraged competition among nations over trade and private investment even though trade and private investment were volatile and inadequate as sole bases for development. In the context of global competition, developing country Governments were seriously constrained in efforts to mobilize domestic resources for their own development. Manual Montes recommended financial reforms to reduce excessive competition among and between corporations and Governments and the reform of international organizations, such as the International Monetary Fund, to better protect developing countries. He asserted that the international community had to overcome crises in politics, policy and morality to undertake systemic financial regulatory reform. 12