Promoting private investment -both foreign and domestic – must be the cornerstone of any pro-growth fiscal policy in the post-pandemic period. Governments in Latin America and the Caribbean (LAC) must ensure that the design and implementation of such policies – which usually involve the use of tax incentives – protect tax revenues and attract the type of investment that can … [Read more...] about How can tax policy promote investment in the post-pandemic period?
The COVID-19 pandemic had strong economic and social impacts that have exacerbated the problems of inequality between rich and poor. While the wealthier classes were able to preserve their jobs and work remotely, many low-income workers lost their sources of income overnight, or saw their incomes shrink dramatically. This increase in inequality, coupled with large fiscal … [Read more...] about Can a wealth tax reduce inequality in Latin America and the Caribbean?
With the outbreak of the pandemic, fiscal balances in Latin America and the Caribbean (LAC) deteriorated and public debt increased significantly. When combined with the expected slowness of economic recovery, this will put significant pressure on the sustainability of public finances for countries in the region. Given this scenario, these countries urgently need to develop and … [Read more...] about Latin American and Caribbean countries must adopt a pro-growth fiscal strategy to avoid falling into a debt trap
There is an urgent need to reduce labor informality to encourage inclusive growth after the pandemic is over in Latin America and the Caribbean (LAC). Labor formality boosts government revenue and targeting of transfers, increasing productivity and curtailing poverty. Given that the region has one of the highest labor informality levels in the world, targeting informality is … [Read more...] about Now it is the time to Foster Labor Formalization in Latin America and the Caribbean
The pandemic does not come to the region in good time, the little dynamism of growth in recent years generates uncertainty of the outlook for the future. For 2020, the consensus among analysts expects a drop in output in Latin America and the Caribbean between -2% and -6%, which comparative terms would be deeper contractions than the debt crisis of the eighties (-2.4%) and the … [Read more...] about Possible macro-fiscal consequences of COVID-19 in Latin America