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?
Fiscal Policy and Management
Cost System: A Tool to Improve the Quality of Public Spending
The need to improve the efficiency and effectiveness of public spending in Latin America and the Caribbean has become increasingly urgent, especially during the COVID-19 pandemic, a crisis that has impacted economic activity by, on one hand, reducing public revenues and, on the other, increasing pressure for more services. The crisis is leaving many of our countries with … [Read more...] about Cost System: A Tool to Improve the Quality of Public Spending
Now it is the time to Foster Labor Formalization in Latin America and the Caribbean
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
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