Dr. Hossam Badrawi Official Website
The concept of social justice in the new republic
Written by Dr. Hossam Badrawi
Vision 2030 did not clearly address social justice, and I found on my part that it must be referred to in a way that represents a perception of a vision that the state must transform into a declared strategy, and the national dialogue may be a stage for that.
There are two different philosophies dealing with social justice: the first philosophy deals with social justice as a result that must be reached regardless of the justice of the means, as some in Egypt are now calling for. The second philosophy deals with social justice as justice of equal opportunity and reward for effort, and at the same time making certain services and rights available to all, such as education, health care, public transportation, sanitation, and clean water, for example, regardless of income disparity. It is the philosophy that is closest to my mind and conscience in realizing a known limit of rights, and at the same time rewarding work and recognizing the multiplicity and different abilities and livelihood.
Studies and experiences have proven that economic policies that support investment in human resources and equal opportunities contribute to supporting economic growth, employment, and achieving social justice, more than just taking from those most capable of distribution to those with least ability.
Equal opportunities are achieved through spending on a basic education system that does not differentiate between the rich and the poor or marginalized, a basic system of health services that does not discriminate between classes, dignified public means of transition to work through investment in infrastructure, and a transparent business climate that prevents monopoly and protects business owners. and include them in the productive process and in creating decent job opportunities and generating income for their families. If the government plays its role in laying the brick of equal and transparent opportunities for all, then everyone contributes through their work to achieving economic growth (increasing the size of the pie) and income growth for all workers by reaping the fruits of economic growth in which all workers contribute – i.e. a share Bigger than a cake for every hardworking person. Through the fruits of this growth, there is an opportunity to redistribute a percentage of it among the marginalized as they are defined
The question is: Who is responsible for achieving social justice?
Achieving social justice in this concept falls on the state as a regulator and guarantor of rights, and on the citizen who is able to use his money to create new job opportunities, and the worker with his effort and mastery of his work to achieve more income and prosperity for himself, his family and society.
Such policies aimed at achieving economic growth and social justice require huge resources, efficient management, and a clear vision for the state and policy makers. My words mean that the new republic, in its philosophy, is a direct partner in setting social justice policies and in building the capabilities of individuals and community institutions and their understanding of their roles.
The next question is: Where does the tax system fall in achieving justice?
I say: Establishing an efficient and fair tax system faces several challenges in developing countries, in which small businesses and informal businesses that do not contribute to paying taxes represent the largest share of the economy, in addition to the evasion of many free professions in light of a weak tax system that is not possible. Therefore, it is not able to count and formally collect through receipts. For example, in Egypt, we will find that less than twenty percent of institutions pay more than eighty percent of taxes, not only because the collection system is inefficient, but because these individuals and small enterprises are outside the scope of the radar of regulation and follow-up.
Taxes are not an end in themselves, nor are they a punishment for the rich just because they make profits, because the state is not a profit-making company. Thus, the required levels of tax revenues vary from country to country, depending on its ability to provide services decided by society. The goal of social justice is originally determined by the areas of public spending, and taxes play an important role in achieving this goal
So, the role of taxes in achieving social justice is achieved by efficiently financing aspects of public spending in an equitable manner for the poor and the able alike. Taxes are fair to the poor in that they are participatory and symbiotic..meaning that the poor has a share of the income of every hardworking person who earns work and shares a specific percentage of his income for public spending to support social solidarity and fair empowerment of opportunity, and is fair to the able because it achieves economic efficiency, so it does not eliminate the incentive to work or cause Investment flight creates job opportunities
We must bear in mind that Egypt is competing with other countries in attracting investment to the Egyptian market, because our own capacity, at least at the present time, will not be able to create a million jobs annually to accommodate the needs of the rising population. The growth of investment and the collection of taxes from its profits contribute to the provision of services and a business climate that enables everyone to produce, innovate and grow. The greater the ability to work, produce, and make profits, the higher the growth rates, the larger the economic pie, and the wider the tax base – that is, the higher the tax levels due to the increase in the number of workers on the one hand, and the increase in income resulting from economic growth – and from here, it is clear that the tax policy must Achieve an optimal combination of economic efficiency and social justice
According to my non-professional understanding, taxes are divided into three basic types: income taxes, consumption taxes, and service user taxes. In the industrialized countries, the greatest share of financing comes from income taxes, then consumption taxes of all kinds, such as sales tax and value-added, as these countries consider consumption taxes unfair because they are imposed on commodities that are bought by the poor and the rich in the same proportion. The only way to be exempt from this tax is “non-consumption”. The poor may avoid buying milk and meals for the children, and thus the poor are affected more than the rich. Therefore, the rate of this tax must vary according to the type of product and how the society benefits or harms from it in order to achieve justice
In Egypt, consumption taxes have the largest share of tax revenues, and they achieve the purpose of increasing revenues without achieving the goal of solidarity or justice.. If the government, for example, wants to achieve social justice through the tax system, it must re-examine the current tax mix and how to achieve the mix The optimum between economic efficiency and social justice.. But we must first start with how spending can achieve the required social justice, then what is the optimal tax mix that achieves the balance between economic efficiency, fairness for taxpayers, and social justice. The most important thing, as I see it, to achieve justice is the efficiency of the tax collection administration system
Social justice comes by providing citizens’ rights from public services, as I said in education, health care, public transportation, infrastructure, applying the law to everyone, and achieving equal opportunities for every citizen based on his abilities and skills and not just because of his existence. Everything I mention here needs funding from society, efficient management from the government, and oversight of public spending to achieve its declared goals. If a government comes and proves excess employment, or spends unrealized profits, or arbitrarily shuts down a factory or a production unit, then even if it pleases a group of society, it has definitely violated the philosophy of social justice for all in favor of a group, even if it has a right from our point of view and its consideration.
Through this presentation, and I am not a specialist, and I speak the language of the citizen who studies and scrutinizes what is being discussed politically in the arena, I wanted to share my opinion and understanding of phrases that are circulated and explained without their meaning, which leads to the opposite of what is intended. How many crimes are committed under the name of social justice in Egypt?
The national dialogue must produce a paper for the philosophy of social justice, and the government must translate that into clear and publicized strategies.
