Latin America and the Caribbean (LAC) face a structural challenge of low economic growth, which threatens the region’s long-term development prospects. The demographic dividend that supported growth over recent decades is fading, and now more than ever, the region must boost productivity and capital investment to sustain economic growth (see Figure 1). As a result, … [Read more...] about How to Make Tax Policy More Business-Friendly and Unlock the Investment Potential in Latin America and the Caribbean
David Herrera
David Herrera is a consultant in the IDB’s Fiscal Division and a member of the FISLAC team. Before joining the IDB, he worked at Colombia’s Ministry of Finance in budgeting, and macroeconomic and fiscal policy. He coordinated the redesign of the 2022 MTFF and contributed to tax reforms, the strengthening of the Fiscal Council, and the update of the fiscal rule. He also led the restructuring of fossil fuel subsidies. He has served as a board member for public financial institutions. He holds a degree in Government and a master’s in public policy from Universidad Externado de Colombia, and a master’s in International Development Policy with a specialization in Public Financial Management from Duke University. Additionally, he has been a professor of public finance and fiscal policy at Universidad Externado de Colombia.
Unveiling the Truth: How Sticking to Fiscal Rules Boosts Investment in Latin America
There is a widespread belief that fiscal rules hinder public investment. The reasoning is straightforward: to adhere to these rules, governments often must reduce spending, particularly on infrastructure projects, which are not deemed essential in the short term. But is that really the case? New evidence from Europe, emerging markets and Latin America shows otherwise. … [Read more...] about Unveiling the Truth: How Sticking to Fiscal Rules Boosts Investment in Latin America