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
Winds of Change: An Opportunity to Reform Tax Administration in the Caribbean
For many countries in the Caribbean region, tax policy and tax administration reforms have been a long overdue task. Given the current situation worldwide, the Caribbean countries are now more than ever faced with the critical need to improve their capacity to collect and manage revenues. Achieving this will require the adoption of more efficient and modern institutional … [Read more...] about Winds of Change: An Opportunity to Reform Tax Administration in the Caribbean
How Fiscal Rules Can Reduce Sovereign Debt Default Risk
The COVID crisis has generated an unprecedented fiscal response as the total resources assigned to attend the pandemic globally has reached $11 trillion, according to the World Economic Forum. Latin America and the Caribbean (LAC) has not been an exception. Taken together, the announced measures in LAC amount, on average[1], to 8 percent of the region’s GDP as stated by the … [Read more...] about How Fiscal Rules Can Reduce Sovereign Debt Default Risk
Four Reform Opportunities to Strengthen Subnational Finances in the Post-pandemic Era
The coronavirus (COVID-19) pandemic that has been wreaking havoc throughout Latin America and the Caribbean (LAC) since the first quarter of the year has had a major impact not just on people’s health but also on public finances in every country, both at national and at subnational level. According to the International Monetary Fund (IMF), the region’s real gross domestic … [Read more...] about Four Reform Opportunities to Strengthen Subnational Finances in the Post-pandemic Era
Tax amnesties in times of COVID: Exceptional measures in exceptional times
Some countries in Latin America and the Caribbean (LAC) are exploring a variety of options in their attempt to collect additional tax revenues to confront the COVID-19 emergency. With a somber forecast ahead, the region´s GDP may contract up to 6% while the fiscal deficit can climb up to 8% by the end of 2020. In this scenario, tax amnesties emerge as a way of generating … [Read more...] about Tax amnesties in times of COVID: Exceptional measures in exceptional times