Subnational governments (SNGs) in Latin America and the Caribbean (LAC) are on the frontline of the coronavirus pandemic. Their proximity to the population and to its needs and demands gives them a prime opportunity to gain early first-hand knowledge of the crisis’s evolution. In the region’s large countries, SNGs are directly responsible for the health response[1], managing … [Read more...] about Subnational governments and coronavirus: five critical actions the IDB is supporting
Ideas for Better Taxation after the COVID-19 Crisis
In memoriam Luiz Villela The unexpected global economic crisis caused by the coronavirus (COVID-19) will have significant economic consequences. Faced with this outlook, Latin American countries are taking steps to mitigate the situation so that its consequences do not drag on over time. Some of these measures will involve increased spending on healthcare and transfers to … [Read more...] about Ideas for Better Taxation after the COVID-19 Crisis
Solving the State-Owned Enterprises Puzzle in Latin America and the Caribbean
The state-owned enterprise (SOEs) sector in Latin America and the Caribbean (LAC) is struggling financially and suffering from political intervention. More than 40% of such enterprises have reported annual losses for several consecutive years in the past decade. The crisis has had important, and sometimes de-stabilizing impacts in the region. For example, heavy losses at … [Read more...] about Solving the State-Owned Enterprises Puzzle in Latin America and the Caribbean
Networks for decentralization and subnational fiscal management: the USA experience
Most local and state level governments in the United States belong to networks and organizations that promote cooperation and the exchange of knowledge to strengthen subnational fiscal management (SFM). One of the leading of such organizations is the Government Finance Officers Association (GFOA). Since subnational governments in Latin America and the Caribbean face … [Read more...] about Networks for decentralization and subnational fiscal management: the USA experience
Three key G20 initiatives to promote global fiscal policy
On average, countries in Latin America and the Caribbean collect 22.8% of their GDP in taxes. Tax burden in the region is 11.4 percentage points lower than that of OECD countries (34.2% of their GDP in 2017). In addition, tax evasion prevents the collection of up to 50% of the revenues that should be raised through direct taxes. This context creates considerable budget … [Read more...] about Three key G20 initiatives to promote global fiscal policy