Fiscal Policy for Stable and Equitable Growth in Latin America
46 Pages Posted: 15 Feb 2006
Date Written: November 2, 1989
Abstract
The resumption of economic growth in Latin America is predicated on the successful restoration of fiscal discipline and stabilization. In restoring fiscal discipline, the mix of policy instruments should aim at maximizing efficiency in the use of domestic and foreign resources. Poverty alleviation in Latin America is not likely to be achieved, in the near future, by economic growth. Policy should promote a more equitable distribution of income. While fiscal policy can play an important role in this process, it is important to realize that the current high domestic inflation in many Latin American countries implies that expanding social programs has high social costs. Fiscal policy should aim at increasing the income share for the poor by making the tax system more efficient and by reforming the existing social programs to make them more effectively targeted toward the poor.
JEL Classification: 321, 322, 323, 914
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Tax Policy for Emerging Markets: Developing Countries
By Vito Tanzi and Howell H. Zee
-
Taxation and the Household Saving Rate: Evidence from OECD Countries
By Vito Tanzi and Howell H. Zee
-
Taxation and the Household Saving Rate: Evidence from OECD Countries
By Vito Tanzi and Howell H. Zee
-
Fundamental Determinants of Inequality and the Role of Government
By Vito Tanzi
-
Fiscal Policy and Economic Reconstruction in Latin America
By Vito Tanzi
-
Tax Reforms and Fiscal Stabilisation in Latin American Countries
By Ricardo Martner and Varinia Tromben
-
Fiscal Sustainability and Resource Mobilization in the Dominican Republic