Latin America and the Caribbean is one of the world’s most vulnerable regions to the impacts of climate change. This implies great challenges for governments and finance and planning ministries in particular. The World Meteorological Organization (WMO) reports that the impacts of weather-related events, including heatwaves or floods, have claimed more than 312,000 lives in … [Read more...] about What are the fiscal risks from extreme weather events and how can we deal with them?
Data compiled by NASA shows that 2020 was the hottest year globally on record, tied with 2016, when compared to the average temperature recorded between 1951 and 1980. Since the 1880s, the Earth's average temperature has risen more than 1°C and there is consensus that countries need to move far more aggressively to decarbonize their economies. Finance and planning ministries … [Read more...] about Three areas where finance ministries can help solve the climate crisis
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