Tax incentives are commonly used by Caribbean countries to promote private investment and growth. However, poorly designed incentives can significantly erode tax revenues and distort resource allocation. It is important that any incentive scheme is part of a well-functioning tax system, with efficient administration and oversight to minimize negative impacts. Of the options, accelerated depreciation is preferred as it provides a bounded cost that does not encourage tax avoidance or short-term projects. Overall, structural reforms may be more effective at unleashing growth than tax incentives alone.
The Extractive Industries Transparency Initiative (EITI): Voluntary Codes of ...Dr Lendy Spires
The document discusses the Extractive Industries Transparency Initiative (EITI), a voluntary code of conduct that aims to promote transparency in how revenues from extractive industries like oil, gas and mining are collected and used in developing countries. It examines Nigeria's implementation of the EITI to assess if it meaningfully increases transparency and accountability or just deflects criticism. The EITI seeks to encourage resource-rich developing nations to use extractive revenues to reduce poverty rather than enrich corrupt officials, but codes of conduct have limitations and don't replace the need for legislation and regulation.
This document discusses China's increasing influence in Latin America and whether it poses a challenge or opportunity. While U.S. influence in the region has historically been strong, some argue that lack of U.S. attention has allowed China to strengthen economic and political ties. However, others believe China and the U.S. can have complementary interests in promoting prosperity. While China's trade with Latin America has grown significantly, the region's relationships are complex with different levels of development across countries.
This document outlines a new agenda for aid, trade, and investment. It notes shifts in global power, interconnectedness, patterns of poverty, and roles. Three types of bilateral relationships are identified: 1) Aid relationships focus on countries unable to reduce poverty alone, 2) Transitional relationships combine aid and trade to benefit developing and Dutch economies, 3) Trade relationships promote Dutch trade and investment. The agenda aims to eradicate extreme poverty, enable sustainable inclusive growth worldwide, and support Dutch companies abroad through coherent policy, new forms of cooperation, financing, and spending cuts.
Brazil is a politically and economically influential country in South America. It has a large population of 208 million people and the 9th largest economy in the world. While Brazil faces challenges like corruption and economic inequality, its middle class is growing rapidly. Brazilians highly value family and social media is widely used. Technological development is concentrated in Sao Paulo, but starting a business remains challenging due to regulations. The retail market is large at $600 billion and growing, though income inequality remains high.
This document discusses different types of international aid organizations including the United Nations, International Monetary Fund, World Bank, regional development banks, and non-governmental organizations. It also examines the history of development aid and strategies used by these organizations, such as building local capacity, creating infrastructure, and combating corruption. The document analyzes frameworks for aid including the Millennium Development Goals and debates around the effectiveness and impacts of international aid.
The Extractive Industries Transparency Initiative (EITI): Voluntary Codes of ...Dr Lendy Spires
The document discusses the Extractive Industries Transparency Initiative (EITI), a voluntary code of conduct that aims to promote transparency in how revenues from extractive industries like oil, gas and mining are collected and used in developing countries. It examines Nigeria's implementation of the EITI to assess if it meaningfully increases transparency and accountability or just deflects criticism. The EITI seeks to encourage resource-rich developing nations to use extractive revenues to reduce poverty rather than enrich corrupt officials, but codes of conduct have limitations and don't replace the need for legislation and regulation.
This document discusses China's increasing influence in Latin America and whether it poses a challenge or opportunity. While U.S. influence in the region has historically been strong, some argue that lack of U.S. attention has allowed China to strengthen economic and political ties. However, others believe China and the U.S. can have complementary interests in promoting prosperity. While China's trade with Latin America has grown significantly, the region's relationships are complex with different levels of development across countries.
This document outlines a new agenda for aid, trade, and investment. It notes shifts in global power, interconnectedness, patterns of poverty, and roles. Three types of bilateral relationships are identified: 1) Aid relationships focus on countries unable to reduce poverty alone, 2) Transitional relationships combine aid and trade to benefit developing and Dutch economies, 3) Trade relationships promote Dutch trade and investment. The agenda aims to eradicate extreme poverty, enable sustainable inclusive growth worldwide, and support Dutch companies abroad through coherent policy, new forms of cooperation, financing, and spending cuts.
Brazil is a politically and economically influential country in South America. It has a large population of 208 million people and the 9th largest economy in the world. While Brazil faces challenges like corruption and economic inequality, its middle class is growing rapidly. Brazilians highly value family and social media is widely used. Technological development is concentrated in Sao Paulo, but starting a business remains challenging due to regulations. The retail market is large at $600 billion and growing, though income inequality remains high.
This document discusses different types of international aid organizations including the United Nations, International Monetary Fund, World Bank, regional development banks, and non-governmental organizations. It also examines the history of development aid and strategies used by these organizations, such as building local capacity, creating infrastructure, and combating corruption. The document analyzes frameworks for aid including the Millennium Development Goals and debates around the effectiveness and impacts of international aid.
BRICS 5th Academic Forum - Global Gov Reform Dr Lendy Spires
The document discusses reforming global governance institutions and the role that BRICS could play in transforming the current world order. It makes three key points:
1. The structures and compositions of institutions like the UN and IMF lag behind changing political realities, with BRICS challenging this by advocating for more representation of emerging economies.
2. The BRICS reform agenda of international financial institutions is limited and has not led to meaningful changes such as reducing the emphasis on austerity policies.
3. A major difference between South Africa and other BRICS countries is that SA relies more on commercial banking for development financing, whereas other BRICS have stronger state-led development policies and institutions.
This document discusses how increasing tax revenues in developing countries through improved collection and tackling illicit financial flows could help achieve development goals to reduce poverty and preventable child deaths. The research finds that if developing countries increased tax revenues to 20% of GDP while maintaining social spending, over 287,000 child deaths could be averted annually and 72 million more people would have access to clean water. Tackling illicit financial flows, estimated at $946.7 billion leaving developing countries in 2011, could result in reaching zero preventable child deaths 20 years earlier according to models. The report recommends actions by the international community to increase tax transparency, information sharing between countries, and reform international tax rules to support developing country tax collection efforts.
Professor Alejandro Diaz-Bautista, Economic Policy, Debt Crisis PresentationEconomist
The document discusses the Latin American debt crisis of the 1980s. It provides background on how Latin American countries took on large debts in the 1970s for development projects. This led their debt levels to quadruple between 1975 and 1983, exceeding their ability to repay. The crisis began in 1982 when Mexico declared it could no longer service its debt, spurring other Latin American countries to face debt repayment issues. Countries had to adopt austerity measures and shift to export-oriented economies over import substitution to address the crisis.
This article discusses Root Capital, a nonprofit social investment fund that provides capital and financial training to small rural businesses in Latin America and Africa. Root Capital aims to grow rural prosperity and reduce poverty. It has provided over $320 million in loans to 350 businesses in 30 countries, benefiting over 500,000 small-scale farm households. Root Capital funds its loan portfolio from foundations, corporations, and other impact investors. The article profiles one such investor, The World We Want Foundation, and its leaders' visit to a Root Capital client in Haiti, an organic mango exporter helping farmers access premium markets.
This document discusses growth and development strategies. It defines growth models as showing how economic growth has occurred historically, while development strategies aim to improve standards of living. Key growth models discussed are the Harrod-Domar model, which shows how savings rates and capital-output ratios influence growth rates, and the structural change model, which explains a country's transition from agriculture to manufacturing and services. The document also outlines different growth strategies like export-led growth and import substitution, as well as types of foreign aid and reasons for foreign direct investment.
Walk the talk on illicit financial flows the g20's responsibility in combatin...Dr Lendy Spires
1) Illicit financial flows, including tax evasion and avoidance, have cost African countries over $854 billion between 1970-2008, more than the continent's external debt. Multinational corporations use sophisticated transfer pricing and tax havens to avoid paying taxes.
2) South Africa loses over $1.4 billion annually due to trade mispricing with the EU and US. Companies like Mopani Copper Mines and SABMiller use mechanisms like transfer pricing and payments to subsidiaries in tax havens to reduce their tax bills in Africa.
3) The 2011 G20 summit in France is a key opportunity for countries to address these issues through measures like automatic tax information exchange and country-by-country financial
Brazil is the largest and most powerful country in South America. It has a population of over 208 million people and the 9th largest economy in the world. While Brazil has made progress in reducing poverty and growing its middle class, it still faces challenges like corruption and criminal violence. The country has a young population and is becoming more technologically advanced, but still has a way to go in improving ease of doing business and promoting further gender equality. Overall, Brazil shows potential for continued economic growth despite some obstacles.
Policies and Affairs| Indigenous (First Nations| Analysis and Commentarypaul young cpa, cga
This document provides a summary of issues related to Indigenous affairs in Canada. It discusses issues such as funding for Indigenous groups, socioeconomic challenges, resource management, public safety, and the need for greater accountability and transparency in funding. It also critiques Prime Minister Justin Trudeau's policies and legacy on Indigenous issues, arguing more needs to be done to improve outcomes related to clean water, housing, economic opportunities, and other areas of concern.
The Effects of International Trade on Poverty and DevelopmentHaley Wadel
This document discusses the effects of international trade on poverty and development. It examines how trade can help stimulate economic growth in developing countries by providing access to larger markets and new technologies, but notes that trade alone is not sufficient for sustained growth and poverty reduction. Other factors like education, infrastructure, governance and institutions also contribute significantly. While trade liberalization aims to boost growth and reduce poverty, it can sometimes increase inequality if not accompanied by policies to support disadvantaged groups through challenges like job losses or food price increases. Successful trade reforms combine open markets with assistance programs to help people negatively impacted.
1) The document discusses Brazil's political and economic history from the 15th century to present day, including periods of dictatorship, hyperinflation, and inequality.
2) It analyzes factors holding Brazil back like the "Brazil cost" of high taxes, interest rates, and barriers to business. Inequality, crime, and a poor education system have also been issues.
3) The performance of President Lula's first term is examined, which saw growth, lower inequality, and macroeconomic stability through reduced debt and inflation.
4) Brazil is compared to other BRIC nations and found to belong due to its large population, growth, and role in global capitalism, though it lags in some areas
This document discusses debt, debt forgiveness, and governance as enabling conditions for debt forgiveness as a form of foreign aid. It reviews literature on why countries take on public debt, the effectiveness of foreign aid, and major debt crises like the 1982 Latin American debt crisis and 1997 Asian Financial Crisis. The document performs a literature review on debt and governance factors that influence the amount of debt forgiveness a country receives. It hypothesizes that better macroeconomic conditions and governance are related to higher levels of debt forgiveness.
The document discusses the external debt of the Philippine government from 1965 to 2010. It provides details on:
1) The external debt increasing under the administrations of Ferdinand Marcos and Corazon Aquino in the 1960s-1980s, reaching $28 billion by 1986.
2) The debt peaking at $57.6 billion under Gloria Macapagal-Arroyo in 2003, leading to fiscal crisis.
3) Ways governments can reduce external debts including issuing bonds, maintaining low interest rates, spending cuts, and raising taxes. However, many countries still face large and growing debts despite these actions.
This document discusses the concept of immigrant transnationalism. It begins with a brief background on traditional immigration studies, which viewed migration as a one-way movement between sending and receiving countries. It then introduces the concept of transnationalism - where immigrants regularly engage socially, culturally and economically in both their country of origin and destination. Key drivers of transnationalism include advances in transportation and communication. The document also discusses measuring and implications of transnationalism, as well as opportunities for transnational entrepreneurship and platforms.
Professor Raymond Atuguba addresses the Sierra Leone Bar Association.Amos Anyimadu
The document discusses the current state of law and development in West Africa. It notes that democracy and good governance are declining globally while dictatorships and populism are rising. Economically, extractivism by powerful countries is pillaging resources from poorer nations. In Africa specifically, every measure of democracy and economic governance declined from 2015-2017, and the continent is moving away from political stability. Many African countries have experienced coups or unrest in recent years. The document calls for action from the Sierra Leone Bar Association to address democratic and economic policy reversals in their country.
Two lectures given by Uwazi manager at University of Amsterdam in April 2010. Lectures seek to explain why development aid has so often been ineffective, by exploring the incentives decision makers in developed and developing countries have to make aid work.
2015 NAFTA 1994 2014, effects on MexicoJulio Cepeda
The document analyzes the effects of NAFTA on Mexico over its first 20 years of implementation. It discusses Mexico's economic development prior to NAFTA, including import substitution industrialization policies that led to debt crises. NAFTA aimed to boost exports, foreign investment, and economic integration between Mexico, US and Canada. The analysis finds NAFTA increased Mexican exports tenfold but did not achieve expected foreign investment levels. It also notes challenges in isolating NAFTA's effects due to other concurrent economic events. Overall, NAFTA had a positive impact on Mexico's trade and real wages.
This document provides a summary of a conference on development, foreign direct investment, and investment treaties in Latin America. The conference brought together economists, lawyers, political scientists, and policymakers from around the world.
The key conclusions from the conference included that laissez-faire economic policies are not always the best for growth, that foreign investment should support national development goals rather than be pursued as an end, and that investment treaties need reform to better balance investor protections with policy flexibility for governments. Presentations covered topics like the history of globalization and development strategies, trends in foreign investment, challenges of investment treaties, and case studies from investment arbitrations. Overall, the conference highlighted the need for more balanced and nu
Yohannes, an Ethiopian farmer, obtained a small loan that allowed him to double his crop harvest. The extra income enabled him to send his children to school, invest further in his farm, and save for the future. His story demonstrates how access to financial services can empower individuals and communities through opportunities for equitable growth. The UNSGSA advocates for universal access to financial services by 2030 to further development goals like reducing poverty and hunger and empowering women. Public-private partnerships and new technologies are making universal inclusion an achievable goal.
Foreign Takeovers & The Canadian EconomyColinbest
The document discusses foreign takeovers and ownership in Canada and its effects on the Canadian economy. It notes that foreign ownership has increased significantly over the past century as trade barriers were reduced. While some argue this "hollows out" Canadian industry, the document finds that foreign investment has actually increased productivity, wages, and head office employment in Canada. It concludes that fears over loss of national identity must be balanced with the economic benefits of foreign capital.
United states economy vs Bangladesh's ecnomyAyesha Noor
The document compares key statistics and policies of the United States and Bangladesh. It notes that the United States has a high income level with a GDP per capita of $65,110, while Bangladesh has a lower middle income level with a GDP per capita of $1,909. To reduce income inequality and poverty, the US implements policies like the Earned Income Tax Credit and Supplemental Nutrition Assistance Program, while Bangladesh receives development aid from organizations like the World Bank. The document also compares population statistics and policies between the two countries.
O documento discute os passos para desenvolver uma estratégia de negócios, incluindo entender o problema e definir a solução, compreender o mercado-alvo e as barreiras, e estabelecer uma estratégia com diferenciais competitivos.
Customer development (fi) - Mentor Pedro TeixeiraFIBH
O documento discute o processo de Customer Development para validar hipóteses sobre o problema, solução e modelo de negócios de uma startup. Ele explica as 8 fases do processo: 1) Definição de hipóteses; 2) Teste do problema com clientes; 3) Teste da solução; 4) Pivô ou avanço; 5) Preparação para vendas; 6) Vendas para clientes iniciais; 7) Desenvolvimento de posicionamento; 8) Nova análise e pivô ou avanço. O Customer Development é essencial para startups testarem continuamente hip
BRICS 5th Academic Forum - Global Gov Reform Dr Lendy Spires
The document discusses reforming global governance institutions and the role that BRICS could play in transforming the current world order. It makes three key points:
1. The structures and compositions of institutions like the UN and IMF lag behind changing political realities, with BRICS challenging this by advocating for more representation of emerging economies.
2. The BRICS reform agenda of international financial institutions is limited and has not led to meaningful changes such as reducing the emphasis on austerity policies.
3. A major difference between South Africa and other BRICS countries is that SA relies more on commercial banking for development financing, whereas other BRICS have stronger state-led development policies and institutions.
This document discusses how increasing tax revenues in developing countries through improved collection and tackling illicit financial flows could help achieve development goals to reduce poverty and preventable child deaths. The research finds that if developing countries increased tax revenues to 20% of GDP while maintaining social spending, over 287,000 child deaths could be averted annually and 72 million more people would have access to clean water. Tackling illicit financial flows, estimated at $946.7 billion leaving developing countries in 2011, could result in reaching zero preventable child deaths 20 years earlier according to models. The report recommends actions by the international community to increase tax transparency, information sharing between countries, and reform international tax rules to support developing country tax collection efforts.
Professor Alejandro Diaz-Bautista, Economic Policy, Debt Crisis PresentationEconomist
The document discusses the Latin American debt crisis of the 1980s. It provides background on how Latin American countries took on large debts in the 1970s for development projects. This led their debt levels to quadruple between 1975 and 1983, exceeding their ability to repay. The crisis began in 1982 when Mexico declared it could no longer service its debt, spurring other Latin American countries to face debt repayment issues. Countries had to adopt austerity measures and shift to export-oriented economies over import substitution to address the crisis.
This article discusses Root Capital, a nonprofit social investment fund that provides capital and financial training to small rural businesses in Latin America and Africa. Root Capital aims to grow rural prosperity and reduce poverty. It has provided over $320 million in loans to 350 businesses in 30 countries, benefiting over 500,000 small-scale farm households. Root Capital funds its loan portfolio from foundations, corporations, and other impact investors. The article profiles one such investor, The World We Want Foundation, and its leaders' visit to a Root Capital client in Haiti, an organic mango exporter helping farmers access premium markets.
This document discusses growth and development strategies. It defines growth models as showing how economic growth has occurred historically, while development strategies aim to improve standards of living. Key growth models discussed are the Harrod-Domar model, which shows how savings rates and capital-output ratios influence growth rates, and the structural change model, which explains a country's transition from agriculture to manufacturing and services. The document also outlines different growth strategies like export-led growth and import substitution, as well as types of foreign aid and reasons for foreign direct investment.
Walk the talk on illicit financial flows the g20's responsibility in combatin...Dr Lendy Spires
1) Illicit financial flows, including tax evasion and avoidance, have cost African countries over $854 billion between 1970-2008, more than the continent's external debt. Multinational corporations use sophisticated transfer pricing and tax havens to avoid paying taxes.
2) South Africa loses over $1.4 billion annually due to trade mispricing with the EU and US. Companies like Mopani Copper Mines and SABMiller use mechanisms like transfer pricing and payments to subsidiaries in tax havens to reduce their tax bills in Africa.
3) The 2011 G20 summit in France is a key opportunity for countries to address these issues through measures like automatic tax information exchange and country-by-country financial
Brazil is the largest and most powerful country in South America. It has a population of over 208 million people and the 9th largest economy in the world. While Brazil has made progress in reducing poverty and growing its middle class, it still faces challenges like corruption and criminal violence. The country has a young population and is becoming more technologically advanced, but still has a way to go in improving ease of doing business and promoting further gender equality. Overall, Brazil shows potential for continued economic growth despite some obstacles.
Policies and Affairs| Indigenous (First Nations| Analysis and Commentarypaul young cpa, cga
This document provides a summary of issues related to Indigenous affairs in Canada. It discusses issues such as funding for Indigenous groups, socioeconomic challenges, resource management, public safety, and the need for greater accountability and transparency in funding. It also critiques Prime Minister Justin Trudeau's policies and legacy on Indigenous issues, arguing more needs to be done to improve outcomes related to clean water, housing, economic opportunities, and other areas of concern.
The Effects of International Trade on Poverty and DevelopmentHaley Wadel
This document discusses the effects of international trade on poverty and development. It examines how trade can help stimulate economic growth in developing countries by providing access to larger markets and new technologies, but notes that trade alone is not sufficient for sustained growth and poverty reduction. Other factors like education, infrastructure, governance and institutions also contribute significantly. While trade liberalization aims to boost growth and reduce poverty, it can sometimes increase inequality if not accompanied by policies to support disadvantaged groups through challenges like job losses or food price increases. Successful trade reforms combine open markets with assistance programs to help people negatively impacted.
1) The document discusses Brazil's political and economic history from the 15th century to present day, including periods of dictatorship, hyperinflation, and inequality.
2) It analyzes factors holding Brazil back like the "Brazil cost" of high taxes, interest rates, and barriers to business. Inequality, crime, and a poor education system have also been issues.
3) The performance of President Lula's first term is examined, which saw growth, lower inequality, and macroeconomic stability through reduced debt and inflation.
4) Brazil is compared to other BRIC nations and found to belong due to its large population, growth, and role in global capitalism, though it lags in some areas
This document discusses debt, debt forgiveness, and governance as enabling conditions for debt forgiveness as a form of foreign aid. It reviews literature on why countries take on public debt, the effectiveness of foreign aid, and major debt crises like the 1982 Latin American debt crisis and 1997 Asian Financial Crisis. The document performs a literature review on debt and governance factors that influence the amount of debt forgiveness a country receives. It hypothesizes that better macroeconomic conditions and governance are related to higher levels of debt forgiveness.
The document discusses the external debt of the Philippine government from 1965 to 2010. It provides details on:
1) The external debt increasing under the administrations of Ferdinand Marcos and Corazon Aquino in the 1960s-1980s, reaching $28 billion by 1986.
2) The debt peaking at $57.6 billion under Gloria Macapagal-Arroyo in 2003, leading to fiscal crisis.
3) Ways governments can reduce external debts including issuing bonds, maintaining low interest rates, spending cuts, and raising taxes. However, many countries still face large and growing debts despite these actions.
This document discusses the concept of immigrant transnationalism. It begins with a brief background on traditional immigration studies, which viewed migration as a one-way movement between sending and receiving countries. It then introduces the concept of transnationalism - where immigrants regularly engage socially, culturally and economically in both their country of origin and destination. Key drivers of transnationalism include advances in transportation and communication. The document also discusses measuring and implications of transnationalism, as well as opportunities for transnational entrepreneurship and platforms.
Professor Raymond Atuguba addresses the Sierra Leone Bar Association.Amos Anyimadu
The document discusses the current state of law and development in West Africa. It notes that democracy and good governance are declining globally while dictatorships and populism are rising. Economically, extractivism by powerful countries is pillaging resources from poorer nations. In Africa specifically, every measure of democracy and economic governance declined from 2015-2017, and the continent is moving away from political stability. Many African countries have experienced coups or unrest in recent years. The document calls for action from the Sierra Leone Bar Association to address democratic and economic policy reversals in their country.
Two lectures given by Uwazi manager at University of Amsterdam in April 2010. Lectures seek to explain why development aid has so often been ineffective, by exploring the incentives decision makers in developed and developing countries have to make aid work.
2015 NAFTA 1994 2014, effects on MexicoJulio Cepeda
The document analyzes the effects of NAFTA on Mexico over its first 20 years of implementation. It discusses Mexico's economic development prior to NAFTA, including import substitution industrialization policies that led to debt crises. NAFTA aimed to boost exports, foreign investment, and economic integration between Mexico, US and Canada. The analysis finds NAFTA increased Mexican exports tenfold but did not achieve expected foreign investment levels. It also notes challenges in isolating NAFTA's effects due to other concurrent economic events. Overall, NAFTA had a positive impact on Mexico's trade and real wages.
This document provides a summary of a conference on development, foreign direct investment, and investment treaties in Latin America. The conference brought together economists, lawyers, political scientists, and policymakers from around the world.
The key conclusions from the conference included that laissez-faire economic policies are not always the best for growth, that foreign investment should support national development goals rather than be pursued as an end, and that investment treaties need reform to better balance investor protections with policy flexibility for governments. Presentations covered topics like the history of globalization and development strategies, trends in foreign investment, challenges of investment treaties, and case studies from investment arbitrations. Overall, the conference highlighted the need for more balanced and nu
Yohannes, an Ethiopian farmer, obtained a small loan that allowed him to double his crop harvest. The extra income enabled him to send his children to school, invest further in his farm, and save for the future. His story demonstrates how access to financial services can empower individuals and communities through opportunities for equitable growth. The UNSGSA advocates for universal access to financial services by 2030 to further development goals like reducing poverty and hunger and empowering women. Public-private partnerships and new technologies are making universal inclusion an achievable goal.
Foreign Takeovers & The Canadian EconomyColinbest
The document discusses foreign takeovers and ownership in Canada and its effects on the Canadian economy. It notes that foreign ownership has increased significantly over the past century as trade barriers were reduced. While some argue this "hollows out" Canadian industry, the document finds that foreign investment has actually increased productivity, wages, and head office employment in Canada. It concludes that fears over loss of national identity must be balanced with the economic benefits of foreign capital.
United states economy vs Bangladesh's ecnomyAyesha Noor
The document compares key statistics and policies of the United States and Bangladesh. It notes that the United States has a high income level with a GDP per capita of $65,110, while Bangladesh has a lower middle income level with a GDP per capita of $1,909. To reduce income inequality and poverty, the US implements policies like the Earned Income Tax Credit and Supplemental Nutrition Assistance Program, while Bangladesh receives development aid from organizations like the World Bank. The document also compares population statistics and policies between the two countries.
O documento discute os passos para desenvolver uma estratégia de negócios, incluindo entender o problema e definir a solução, compreender o mercado-alvo e as barreiras, e estabelecer uma estratégia com diferenciais competitivos.
Customer development (fi) - Mentor Pedro TeixeiraFIBH
O documento discute o processo de Customer Development para validar hipóteses sobre o problema, solução e modelo de negócios de uma startup. Ele explica as 8 fases do processo: 1) Definição de hipóteses; 2) Teste do problema com clientes; 3) Teste da solução; 4) Pivô ou avanço; 5) Preparação para vendas; 6) Vendas para clientes iniciais; 7) Desenvolvimento de posicionamento; 8) Nova análise e pivô ou avanço. O Customer Development é essencial para startups testarem continuamente hip
An Interior Designer involved in Multi Award winning projects, working with a social conscious and an innate appreciation of the client’s needs, translating this into a functional built form.
Highlights of my career, documenting 8 multi award winning childcare centres collaborating with indigenous NSW communities and indigenous architect’s and developing new 21st century NSW Classroom prototypes with Department of Education
Experience in all aspects of project delivery, including client liaison and design development.
Strong external and interior maternal and colour selection expertise, working in close collaboration with the design team, honed over 15 years of project delivery.
Project team leadership experience, mentoring junior staff. Project management skills and skills to manage cost and time constraints, while being highly organized and prioritising tasks for maximum efficiency.
Over my career have been naturally creative with strong at conceptual development skills. a strong client focus, being an innate part of my personality.
La realidad aumentada (RA) combina elementos virtuales con el mundo real en tiempo real a través de dispositivos tecnológicos. Se originó en la década de 1960 y ha evolucionado desde simuladores hasta aplicaciones móviles y juegos. Actualmente, se usa principalmente para fines educativos como traducciones instantáneas de texto, pero depende de que la tecnología se vuelva más asequible para su adopción generalizada.
El documento proporciona información sobre diferentes métodos estadísticos como histogramas, polígonos de frecuencia, tabulación y distribución de frecuencias. Explica cómo construir estos gráficos y tablas, y los tipos de frecuencias que se pueden incluir. También describe los pasos para ordenar datos y definir clases en una distribución de frecuencia, así como los factores a considerar al seleccionar un método para la recolección de datos, como la estructura del estudio y su propósito.
Este documento describe diferentes medidas de dispersión como el rango, la desviación estándar, la varianza y el coeficiente de variación. Estas medidas cuantifican cuán dispersos están los valores de una distribución respecto a la media y son útiles para comparar la variabilidad entre conjuntos de datos.
Andrea Douglas is seeking a federal civilian position and has a background in finance. She has a Bachelor's degree in Business Administration with a major in finance from the University of North Texas and is currently pursuing an MBA from the University of Phoenix. Her work experience includes positions as a teller at Wells Fargo Bank and personal banker roles at First Convenience Bank and Whataburger. She also has experience tutoring math, finance, and accounting courses.
Christy Barnes is an experienced interior designer with over 13 years of experience working on award-winning government projects in New South Wales, Australia. She has a diploma in interior design and architectural drafting. Some of her major projects include designing new classrooms for the NSW Department of Education focused on future learning from 2014-2016, interior design and material selection for Lightning Ridge Hospital in 2015, and interior design and furniture selection for 8 childcare centers for the Department of Family and Community Services from 2010-2013.
El documento presenta conceptos básicos de estadística como variables, población, muestra, parámetros, escalas de medición y términos como razón, proporción y tasa. Explica que una variable puede ser cualitativa o cuantitativa y discreta, continua o nominal/ordinal. Además, define población, muestra, parámetro, y tipos de escalas de medición como nominal, ordinal, de intervalo y razón.
Camelia Poenaru has over 30 years of experience in quality assurance and document management. She currently works as a Document Manager for Alstom Infrastructure Romania, where she is responsible for completing and expediting engineering, quality, and site documents to customers for various projects. Previously, she held roles as a Quality Assurance Engineer and Purchasing Engineer at Alstom General Turbo, as well as positions in quality assurance, welding engineering, and design engineering at other companies.
O documento discute a estruturação de equipes em startups. Ele aborda a importância de ter profissionais versáteis e empreendedores capazes de lidar com desafios. Também discute como encontrar o equilíbrio certo entre experiência e custo ao contratar membros da equipe inicial e como criar uma proposta de valor atraente para candidatos.
O documento discute como determinar o preço de um produto. Ele aborda os seguintes pontos: 1) Custos de produção, 2) Benchmarking de preços de concorrentes e substitutos, 3) Valor percebido pelo cliente. O documento sugere que o preço deve levar em conta esses fatores para ser competitivo e maximizar os ganhos.
El documento describe un diplomado para docentes sobre el uso de TIC para mejorar el aprendizaje de estudiantes. Explica que el aprendizaje vivencial implica que los estudiantes aprendan a través de experiencias, como cuando crean fábulas aplicando conocimientos previos. Los estudiantes de sexto grado de una escuela en Colombia participan activamente en estas experiencias y comparten sus creaciones. El aprendizaje vivencial es interactivo y permite a los estudiantes aprender a pensar y actuar de manera competente. Se requiere que los
- The earliest record of makeup use comes from ancient Egypt in 3100-2907 BC, where women decorated their eyes with kohl and men and women used unguent to moisturize their skin.
- Romans widely used cosmetics starting in the 1st century AD to darken eyelashes, whiten skin, and add rouge to cheeks.
- Modern surveys find that while some men say they prefer less or no makeup, women who wear makeup actually receive more messages on dating sites than those who don't, suggesting makeup can help attract romantic partners.
This document summarizes key information about using Instagram to engage a target audience. It discusses:
- Identifying the target audience as military members, civilians, and families stationed on Okinawa or in general, with a focus on single members.
- Reaching this audience through hashtags related to location, military, travel, and the brand, as well as geotagging posts.
- The importance of engagement rates, potential reach, and working with key influencers to expand the audience.
- Using a "push and wait" strategy to provide value without direct selling by building anticipation and connections.
El documento presenta 5 problemas o ejercicios de programación y sus respectivas soluciones en forma de diagramas de flujo. El primero pide leer 2 valores e identificar cuál es mayor. El segundo calcula el precio medio de un producto en 3 establecimientos. El tercero calcula la hipotenusa dada 2 catetos. El cuarto simula una caja registradora que suma subtotales y aplica IVA. El quinto finaliza el documento.
This report analyzes opportunities to develop the health and wellness sector in five English-speaking Caribbean countries as a strategy for economic growth. It identifies medical tourism, healthcare education, eldercare, alternative health, and telehealth as promising market segments. A strategic roadmap is proposed to catalyze private sector investment in these areas through public-private partnerships and leadership from multilateral organizations like the IDB. Developing the health and wellness sector could help diversify Caribbean economies and create high-skilled jobs to reduce migration by graduates.
The document discusses characteristics of Caribbean economies and economic issues they face in a globalized environment. Key characteristics include dependence on one or two exports like agriculture, small population and domestic markets, and underdeveloped secondary and tertiary sectors outside of a few larger countries. Major economic problems include low per capita incomes, large unskilled labor forces, heavy reliance on food imports, and high debt burdens. The document then examines development strategies for Caribbean economies globally, such as investing in education, export-led growth, foreign direct investment, and borrowing from international financial institutions.
Whitepaper: Latin America: Room for growthDubaiChamber
Latin America: Room for growth is an Economist Intelligence Unit (EIU) report, commissioned by Dubai Chamber. The report discusses the current economic and political climate in Latin America and explores sectors that present opportunities for economic growth—particularly trade-related infrastructure and the services sector. The findings are based on desk research and interviews with experts in the topic.
The target audience is students and researchers who are interested in determining the sources and uses of ODA funding in Guyana.
There is a trend showing greater domestic resource mobilisation. As the Guyana economy grows, dependence on ODA declines. At the same time, there are opportunities for improvements in the tax to GDP ratio. The data provides no evidence on energy subsidies. Indeed, these is evidence that ODA resources are being uses to sustain the environment. Further, ODA funding is utilised in a way that promotes sustainable development, poverty reduction and economic growth.
The document discusses several factors that can promote or hinder economic development in countries. It identifies indicators used to measure development, including economic factors like investment, infrastructure and productivity, as well as non-economic social indicators. Some factors that can hinder development are political fragmentation, unequal wealth distribution, natural disasters and a country's small size.
THE EFFECTS OF ILLEGAL TRADE ACROSS THE BORDER WITH THE DOMINICAN REPUBLIC AN...Stanleylucas
Haiti faces a great many development challenges and needs to invest heavily in the areas of education, health, and infrastructure as a means of spurring economic growth and achieving sustainable development. The country shares the island of Quisqueya with the Dominican Republic (DR), and unlike Haiti, that country has been able to grow its economy consistently over the past six decades and it stands today as one of the most vibrant economies of the Central American and Caribbean regions; the DR has a Gross Domestic Product (GDP) of $ US 73.6 billion and a GDP per capita of $ US 6,909.
Haiti on the other hand, the only Less Developed Country (LDC) of the western hemisphere, has a GDP of $ US 8 billion and a GDP per capita of $ US 729. This stands in stark contrast with the economic performance of its neighbor, a result that is surprising since the two countries had similar GDP per capita as recently as the early 1960’s.
Studies point to structural measures (investment in education, and infrastructures) as one of the main factors that explain the difference in the growth experience of the two countries.
Smuggling of merchandise goods from the DR to Haiti has grown significantly over the past fifteen years, and today, estimates of the volume of illegal trade range from $ US 630 million to $ US 1 billion; that is at least 8% of GDP. Revenue losses caused by these illegal activities have been estimated to range between $ US 184 million and $ US 440 million. The availability of an additional $ US 250 million would have kept the Haitian Treasury from running a deficit over the past five years, and the macroeconomic environment would not have deteriorated as much as it did: high inflation and exchange rate volatility. GDP would have also risen by an additional 1.85% had the $ US 250 million shortfall been used to increase capital expenditures.
Policy Background Paper: A Viable Framework for a Green Economy in Caribbean ...UNDP Policy Centre
Key findings of IPC-IG researcher Leisa Perch's paper entitled "A Viable Framework for a Green Economy in Caribbean Member States: Considerations for Inclusive and Green Growth"
The Caribbean Islands were heavily impacted by the global economic crisis due to their small, open economies. The crisis affected the islands through decreased trade, tourism, remittances, and foreign direct investment. To address the crisis, Caribbean governments implemented fiscal policies and stimulus packages, with measures varying based on each country's economic situation, debt levels, and ability to access international reserves. While most countries pursued pro-cyclical fiscal policies, some like Guyana and Trinidad and Tobago implemented counter-cyclical policies to stabilize their economies.
The document summarizes the economic performance of Caribbean Development Bank (CDB) member countries in 2015. Key points:
- Economic growth in the region lagged global growth due to slowing growth in China and falling commodity prices, which impacted commodity exporters. Tourism-reliant economies fared relatively better.
- Natural disasters in Dominica and The Bahamas caused damage and slowed economic growth. Unemployment remained high, especially among youth. Inflation fell across most countries due to lower commodity prices.
- While most countries' debt levels increased or remained high, some like Jamaica and Grenada reduced their debt burdens through fiscal consolidation and debt restructuring. External balances improved for non-oil exporters
The document discusses the impacts of agriculture on Wyoming's economy. It notes that while agriculture's importance to Wyoming's overall economy has declined, it still contributes significantly in terms of dollars and plays an important cultural role. Specifically, it contributes billions annually, with cattle production making up about 80% of its $800 million yearly contribution. Agriculture also distinguishes Wyoming's economy and culture, provides jobs, and increases economic growth and gross domestic product. Thus, while its relative importance has decreased, agriculture remains a key aspect of Wyoming's identity and economy.
This document presents a Strategic Framework for USAID/Haiti from 2020-2024. It aims to redirect Haiti's development trajectory according to the principles of Journey to Self-Reliance. The framework advances three development objectives: 1) Increase Haiti's resilience to shocks and stresses, 2) Promote more inclusive, locally driven economic growth and social development, and 3) Support governance that is more responsive to citizens' needs. It acknowledges Haiti's challenges, including poverty, inequality, and instability, and takes an integrated approach to development programming across sectors. The framework emphasizes building resilience at all levels to lay the groundwork for self-reliant development and measurable progress toward these objectives by 2024.
I apologize, but I do not actually have any direct quotes or interviews with Bill Gates to reference. As an AI assistant created by Anthropic to be helpful, harmless, and honest, I do not have personal experiences to draw from.
The document discusses the economic phenomenon known as "Dutch Disease" where the discovery and development of natural resources like oil and gas can negatively impact a country's economy. It provides examples of how countries like Nigeria, Trinidad and Tobago, and the Netherlands have experienced Dutch Disease. Norway is presented as a rare example of a country that avoided major negative impacts through policies like establishing a sovereign wealth fund to invest revenue from oil and gas. The document calls for Suriname to extensively study successful and unsuccessful cases to develop strategies for managing its upcoming oil and gas industry and preventing Dutch Disease.
Latin America is in an excellent position to lead the global economic recovery. The expectations and opportunities for foreign investment are growing and turning this continent into an exciting place to start a business. Some of the best business opportunities are now in Latin America; with lots to offer, attractive incentives for new companies to invest, an abundance of natural resources and good human talent. For these reasons and more, LATAM is a good business option.
- Developing countries need to increase tax revenues to fund essential public services and meet UN Millennium Development Goals like universal primary education, but many raise significantly less than wealthier nations as a percentage of national income. Increasing tax revenues by just 1-2% of GDP could provide hundreds of billions annually to fight poverty.
- Globalization and tax havens allow multinational corporations and wealthy individuals to evade taxes in developing countries through practices like transfer mispricing and profit shifting to tax havens, costing these countries tens or hundreds of billions in lost revenues annually. Increased transparency and cooperation are needed to curb these illicit financial flows.
- Reforms to international tax rules and greater assistance to strengthen domestic
Report on the Competitiveness of Puerto Rico's EconomyThe New York Fed
Puerto Rico has a number of features that make it a strong and potentially highly competitive economy: Literacy rates and educational attainment continue to improve, the labor force is largely bilingual, the economy is open with a favorable location, and close ties to the U.S. mainland economy provide many advantages. However, Puerto Rico’s economic progress has stalled: the Island has been operating below its potential for some time and the competitiveness of the economy continues to deteriorate. The underutilization of labor resources, evidenced by persistently high unemployment and strikingly low labor force participation rates, provides the clearest evidence of a lack of competitiveness.
The challenge to policymakers is to marshal the Island’s considerable strengths to raise living standards and restore growth. In this report, we identify five factors that in our view pose significant competitive challenges to the Island:
• Improving Labor Market Opportunities: Puerto Rico’s labor force participation rate is among the lowest in the world, with less than half of eligible workers participating in the formal economy. Moreover, the unemployment rate has been persistently well above the U.S. mainland’s, and is especially high for the young and less educated.
• Developing Human Capital: Although the Island’s workforce overall is among the world’s most educated, Puerto Rico still lags the U.S. mainland, and there is a particularly high abundance of low-skilled workers. There are also growing concerns that the quality of the education system has deteriorated, especially at the primary and secondary levels.
• Reducing the Costs of Doing Business: The business environment in Puerto Rico makes it costly and cumbersome to establish and grow new businesses and expand existing ones. In particular, regulations, the elevated cost of electricity, and an underdeveloped and costly transportation infrastructure are barriers to a more dynamic environment.
• Mobilizing Finance for Business Development and Growth: Weak banks and limited alternatives to bank funding have reduced credit availability to local businesses.
• Lowering Dependence on a Shrinking Industry: Tax incentives led to an outsized presence of the pharmaceuticals industry on the Island. The incentives have been phased out and employment in the industry has declined. Going forward, there appears to be only a limited prospect for the sector to be a driver of growth.
The Project addresses the pervasive challenge of Financial Misconduct as the Singular perpetrator of Underdevelopment in Nigeria and the need to tackle it going forward to the SDGs
The Project addresses the need for Nigerians to deal decisively with the menace of Financial misconduct at all levels of the national life if significant development would be made. Financial crimes and Misconducts have been identified as the singular bane to Nigeria's dvelopment
The document discusses the history of international debt crises and their management. It describes how developing countries took on large debts in the 1970s that led to debt crises in the 1980s. International organizations like the IMF and countries implemented programs like the Baker Plan, Brady Plan, and HIPC initiative to restructure debts and provide debt relief to poorer countries. These programs required economic reforms and aimed to reduce debt burdens to sustainable levels to alleviate poverty in heavily indebted nations.
Similar to 785860WP04.0Pr00Box377349B00PUBLIC0 (20)
1. 1
Promoting Growth in the Caribbean:
Tax Incentives in Theory and in Practice
June 2013
PublicDisclosureAuthorizedPublicDisclosureAuthorizedPublicDisclosureAuthorizedPublicDisclosureAuthorized
78586
2. 2
Authors: This material was prepared by By Martin Bes, World Bank Consultant, in collaboration with Daniel Alvarez-Estrada, Senior Public Sector Specialist, LCSPS,
World Bank. The report benefited from comments received from Alberto Barreix (Inter-American Development Bank), Andrea Gallina, Christine M. Richaud,
McDonald P. Benjamin, Kathy Lalazarian, and Thomas A. Vis (World Bank).
The Caribbean Knowledge Series is an occasional series that presents World Bank knowledge in an accessible format. It is meant to assist knowledge sharing
across the region and trigger policy dialogue on topics relevant for the Caribbean
This note was prepared to support the participatory policy dialogue in the context of the Caribbean Growth Forum (CGF). The CGF is an initiative facilitated by the
Compete Caribbean Program, the Inter-American Development Bank, the World Bank and the Caribbean Development Bank, with the support of the Canadian
International Development Agency, the United Kingdom’s Agency for International Development, CARICOM Secretariat, the University of the West Indies, the
European Union and Caribbean Export. It aims to facilitate a multi-stakeholder dialogue to identify practical solutions for the growth challenge in the Caribbean. To
learn more about the CGF methodology and progress in each Caribbean country visit: http://caribgrowth.competecaribbean.org/
Disclaimer: The findings, interpretations, and conclusions expressed herein are those of the author(s) and do not necessarily reflect the views of the Executive
Directors of the International Bank for Reconstruction and Development / The World Bank or the governments they represent. The World Bank does not guarantee
the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any
judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries.
Visit the entire “Caribbean Knowledge Series” collection at: http://worldbank.org/lac
Design & Concept by Room Grupo Creativo | www.room.com.do
Cover Photo: Shutterstock
4. 4
Introduction
The recent international financial crisis dealt a
hard blow to the region’s growth prospects, being
reflected in reduced demand for financial services
and tourism as well as falling remittances. This
was combined in some cases with home grown
macroeconomic imbalances and the need to
face the costs of financial sector bailouts in other
countries. Counter cyclical policy response has
been limited, as countries do not enjoy sufficient
fiscal space and debt levels in some of them are
at worrisome levels. More recently, policymakers
have indicated the need to explore the use of tax
incentives in order to foster much needed private
investment. This Policy Note analyzes the issues
associated with the use of tax incentives and
reviews the challenges faced by the region, which
has had a not altogether successful experience in
controlling tax expenditures.
The Policy Note is organized as follows. The
first section explores the diverse nature of the
Caribbean and Latin American group of countries
referred to in this note: The Bahamas, Barbados,
Belize, Dominican Republic, Guyana, Haiti,
Jamaica, Suriname and Trinidad and Tobago. This
is followed by a word of caution regarding the
emphasis on factor accumulation in explaining
growth, dampening beforehand any unrealistic
expectations regarding growth promoting tax
incentives.
A brief analytical review of the main direct and
indirect tax instruments is included in section
3. Finally, while studies of tax expenditures in
Caribbean economies are not infrequent, very
little empirical work has been carried out in the
region regarding the role of tax incentives in
promoting investment and the latter’s effect on
growth. Section 5 will then review some country
experience with provision of tax relief. A brief set of
recommendations closes the document.
1. Recent economic developments
in the selected group of Caribbean
countries
While the Caribbean and Latin American
countries included in this Policy Note share many
cultural, historical, economic and geographic
characteristics, they pose some striking
differences as well. Most of the countries involved
are island states and all are vulnerable to natural
disasters. They are also small countries in terms of
territory and population, though there are outliers
regarding both variables. Guyana and Suriname,
two countries located in South America have large
if sparsely populated territories. With regards to
population, the Dominican Republic and Haiti have
over 10 million inhabitants each, overshadowing
the rest of the countries being considered. Living
standards are high in The Bahamas, Barbados and
Trinidad and Tobago as measured by the UNDP’s
annual Human Development Report. With the
exception of Haiti that borders the low-end of
human development indicators, the rest of the
countries’ rank at the medium human development
level.
Tourism, financial services and natural resources
are the dominant economic activities. The
Bahamas and Barbados are specialized in high-
end tourism and financial services while Belize,
Guyana, Suriname and Trinidad and Tobago are
resource-based economies (oil and gas, minerals,
agriculture and forestry). The Dominican Republic
and Jamaica have strong tourist sectors as well as
significant mining activity and some agriculture.
Haiti is a special case as political instability and
natural shocks have undermined economic
performance over the past four decades.
Diversity is also a feature when considering per
capita GDP. With values ranging $17,000 to $23,500
US dollars The Bahamas, Trinidad and Tobago and
Barbados boast the highest values of per capita
GDP among the emerging markets of the Western
Hemisphere. At the other end of the spectrum is
Haiti, with a per capita GDP of around $830 US
PromotingGrowthintheCaribbean:
TaxIncentivesintheoryandinpractice
5. 5
dollars. Belize, the Dominican Republic, Guyana
and Jamaica are low middle-income countries, in
a range of $4,000 to $6,000 US dollars per year,
while Suriname’s per capita GDP will be in the
neighborhood of $9,500 US dollars in 2013.
With the exception of the Dominican Republic and
to a lesser extent The Bahamas, fiscal revenue is at
the high end for emerging economies, in the range
of 24% to 35% of GDP for the rest of these countries.
Taxes and social security systems provide the
bulk of government resources although natural
resources and grants represent a significant part of
fiscal revenues in the cases of Trinidad and Tobago
and Haiti respectively. Public expenditure is also
high for emerging economies, in the range of 25%
to 40% of GDP, with the exception again of the
Dominican Republic where it hovers around 18%.
Overall deficits for all countries will be in the range
of 2% to 6% of GDP in 2013. Public Debt is a matter
of concern for some countries. It is in a range of 55%
to 82% of GDP in The Bahamas, Barbados, Belize
and Guyana and it is especially high in Jamaica,
over 140% of GDP.
The greatest impact of the international financial
crisis was felt in the service oriented economies as
well as those that received significant remittances
from their migrants. Terms of trade shocks from
higher energy and food prices compounded their
stress. However even Trinidad and Tobago, an oil
and gas exporter, was not immune to the crisis
as it had to rescue a large financial conglomerate
in 2009. This has translated in low growth, which
has affected the non-resource economies for the
better part of the decade.
Rigid expenditures patterns and significant deficits
have meant there has been little fiscal space to
finance expansionary policies domestically. High
debt levels have further restricted this option
except in the cases of Suriname and Trinidad and
Tobago, countries that faced lesser shocks because
of their resource oriented economies.
2. Growth determinants
For over half a century economists have used
a sources-of-growth accounting framework to
estimate the contributions to growth of changes
in the labor force, in capital and in technology.
A logical extension of this analysis has been to
examine the determinants of factor accumulation
and innovation, including the role played by tax
policy. Taxes will affect the labor force in many
ways. For example a high personal income tax
rate will discourage people from working while tax
credits for education may encourage investment
in human capital and therefore a more productive
work force. The same is true regarding physical
capital. Higher corporate income taxes tend
to discourage additional investment while tax
incentives will, all else being equal, encourage
capital formation. Likewise, while tax policy cannot
determine innovation it can stimulate expenditures
in research and development that may lead to
innovation.
It would however, be a mistake to conclude that all
that is needed to increase economic growth is the
right combination of tax breaks that will provide
stimulus for factor accumulation. Empirical studies
cited in Easterly and Levine (2001) show that factor
accumulation only explains around 50% of per
capita growth in OECD countries and 65% in LA
countries while the rest is explained by Total Factor
Productivity, a residual of which economists don’t
yet have an adequate understanding of (Prescott
(1998)).
Without denying the importance of factor
accumulation, economists have increasingly
placed a greater emphasis on the role played
by economic policies in setting a framework
conducive for growth, productivity and innovation.
An initial set of policies considered are openness
to international trade, sound fiscal management
and financial development. The point made is that
more often than not structural reform may unleash
the growth potential of a country in ways barely
imagined by tax measures enacted to promote
investments.
4. Features of good tax incentive
systems
Tax incentives have been justified for a number of
reasons in emerging economies, chief among them
being the need to compensate for the existence of
market failures that discourage investment1
. High
capital mobility and international competition for
foreigndirectinvestment(FDI)hasalsoledcountries
6. 6
tooffertaxincentivesaswellasotherenticementsin
an effort to land coveted investments. Lastly, tax
incentives are frequently seen as an expedient way
to address existing bottlenecks and limitations that
make a country or sub-regions of a country, less
attractive for investment and that would require
lengthy structural reform.
Of the three reasons mentioned previously,
possibly the most compelling justification for the
use of tax incentives is the existence of positive
spillover effects. Under a scenario of positive
externalities,afirmwilldecidealevelofinvestments
that will be sub-optimal if it will not be able to reap
all the benefits associated with this investment. In
this case, tax incentives could be used to increase
a project’s profitability, inducing the firm to
increase the level of investment. Examples of these
investments are those located in a country’s less
developed regions or those that build human and
physical capital that will not exclusively benefit the
project’s owners 2
.
As described in Zee et al (2002) and Artana et al
(2012), poorly designed tax incentives are likely
to have major negative effects on the economy.
They will erode the tax base, in some cases by
providing tax relief to economic activities that
were profitable and did not require this relief, in
others due to abuses in the system by activities not
eligible to receive them. This loss in tax revenue
will need to be compensated, possibly by raising
taxes on the rest of the economy and/or reducing
expenditures. They will distort resource allocation
in favor of promoted activities, which may not have
been the obvious choices from an efficiency point
of view. Furthermore, promoting any activity tends
to affect human behavior, creating opportunities
for corruption and rent-seeking behavior.
However, since tax incentives are unlikely to be
abandoned by most developing countries as a
policy instrument, focus should be placed on
figuring ways to minimize harmful effects of tax
incentives. Even in the case of market failures, the
benefits to the economy should outweigh the cost
associated with the introduction of tax incentives.
And even then, care must be taken to design
instruments that will be best for the economy.
First of all, any tax incentive scheme requires a
well-functioning overarching tax system. The point
is that tax incentives will only work if taxes are
collected in the first place, a not so obvious fact in
many countries in the hemisphere due to poor tax
design and weak tax and customs administration.
Efficient, client-oriented tax and customs
administrations are key to collecting taxes. Tax and
customs administrations should enjoy financial
and administrative autonomy, and its staff should
be part of a civil service that is independent of the
political system. The same degree of professional
skill is required of budgetary institutions, sectorial
ministries and investment boards responsible
for managing and overseeing any investment
promotion regime. An important element of a
well-designed system is the separation of those
responsible for the administration of the tax
benefits of projects from those responsible for
selecting these projects based on objective criteria
and monitoring that slippages have not occurred
regarding the commitments made by investors.
The next, frequently overlooked, step of a
good tax incentive system is a sustainable fiscal
framework. Introducing tax incentives in countries
of questionable fiscal solvency will likely not be
conducive to generating quality investments, as
entrepreneurs will not expect that the favorable
tax treatment awarded to their investment will be
sustained over time.
But what kind of tax incentives are there? The
initial distinction to be made when considering
tax incentives is between incentives through direct
taxes – the Corporate Income Tax (CIT) – and
indirect taxes (import tariffs and the Value Added
Tax – VAT)3
.
Corporate Income Tax Incentives
Tax incentives under the CIT target the tax rate as
well as capital recovery of invested amounts. Table
1 summarizes the advantages and disadvantages
of these instruments in terms of revenue and
implementation costs, of the distortions they
introduce in favor of tax avoidance and resource
1
The infant industry argument was used to justify trade barriers while the nascent economic sector developed the skills, knowledge, etc. that allowed it to compete with foreign production.
This argument has lost support due to the unsatisfactory performance of inward oriented development strategies vis a vis that of economies that embraced trade openness.
3
This is merely an analytical distinction as many investment promotion regimes (e.g. Argentina and Brazil) provide tax incentives through direct and indirect taxes. Tierra del Fuego’s tax
incentives can be consulted in http://www.sub-industria.gob.ar/depyme/regimen-especial-aduanero-y-fiscal-de-tierra-del-fuego.
Manaos’ regime is described in http://www.suframa.gov.br/zfm_incentivos.cfm.
2
Porto (2010) describes Uruguay’s sophisticated investment promotion regime.
7. 7
allocation and in terms of transparency for the tax
system. The preference is to provide tax incentives
through accelerated depreciation. This alternative
allows taxpayers to frontload depreciation beyond
the regular schedules accepted in the tax code, in
some cases even expensing the total investment
amountswhentheinvestmentismade.Therevenue
cost associated with accelerated depreciation is
bounded by the amount invested, unlike incentives
that operate on profits, which are unbounded
and depend on the performance of the project.
Expressed from a different angle, the incentive
only affects the timing of the cost–recovery and not
its amount.
From the perspective of its implementation,
an accelerated depreciation scheme is fairly
straightforward and does not require a specific
arrangement from the tax administration. Unlike
other direct tax incentive schemes that favor
combining profits from firms that do not enjoy tax
incentives with those that do benefit from them,
accelerated depreciation does not introduce
any bias in terms of tax avoidance. Likewise, this
alternative is transparent as taxpayers are required
to file tax returns every year and it does not distort
the nature of the investment to be undertaken by
the firm.
Tax incentives provided through
import tariffs, excises and VAT
Tax incentives can also be provided in the cases of
import tariffs, excises and VAT4
. This is usually done
by exempting certain inputs from these taxes.
While general exemptions are easy to administer,
they may entail significant revenue loss. Targeted
exemptions to benefit specific industries or sectors
that use these inputs will narrow the loss. However,
these exemptions interfere with the desired tax
neutrality in resource allocation as they provide tax
Table 1
Corporate Income Incentives
Tax Holiday Preferential
Tax rate
Accelerated
Depreciation
Investment
Allowance
Investment
Tax Credit
Revenue cost Unbounded Bounded Bounded Bounded Bounded
Tax avoidance Encourages
transfer of
profits from
firms that are
not exempted
Encourages
transfer of
profits from
firms that are
not
exempted
Does not
encourage
tax
avoidance
Encourages
sale and
purchase of
assets to
claim
allowance
Encourages
sale and
purchase of
assets to
claim
allowance
Transparency
of revenue
cost
Normally do
not require
tax filing
Requires tax
filing
Requires tax
filing
Requires
tax filing
Requires
tax filing
Resource
allocation
Tend to
attract short-
run projects
Tend to
attract short-
run projects
Does not
affect life of
assets.
Tend to
increase
capital
intensity
Tend to
favor short
term assets
Tend to
favor short
term assets
Administration
Costs
Significant tax
administration
costs to
monitor tax
avoidance
from related
but non-
exempted
firms.
Significant
tax
administration
costs to
monitor tax
avoidance
from related
but non-
exempted
firms.
Some.
Usually
associated
with carry
forwards.
Some Some
Implementation
Costs
Medium to
ensure
project
complies with
goals
Medium to
ensure
project
complies with
goals
Initially to
ensure
investment is
made
Initially to
ensure
investment
is made
Initially to
ensure
investment
is made
8. 8
relief only to specific beneficiaries. They also pose
significant challenges to tax administrations as the
exempted inputs may be diverted to unintended
beneficiaries. Revenue concerns, allocation
distortions and enforcement costs are the three
main factors that discourage the use of indirect
tax incentives in most economic activities, the
exception being those that are export-oriented.
The economic rationale for eliminating indirect
taxes from exports is provided by the destination
principle under which goods and services are
taxed wherever they are consumed. The best-
known example is the zero rating of VAT on exports,
by which the exporter receives a tax credit for the
amount of VAT paid on inputs used to produce the
good or service. This implies that the tax treatment
a product will receive will depend on whether it is
sold in the domestic market or abroad.
While the destination principle is straightforward,
its implementation can present challenges
for many customs and tax administrations in
developing countries. The challenge is due to the
fact that indirect taxes will be reimbursed only on
the amounts paid on import tariffs, excise taxes
and VAT for inputs used to produce the goods and
services that were exported. However, exporting
firms usually produce more than one good or
service, using many inputs in different proportions
that may be taxed at different rates and that are
sold domestically or exported.
A final mention should be made regarding Export
Processing Zones (EPZ). There is widespread use of
EPZ in the region to promote exports and it is not
unusual that economic activities are exempt from
direct and indirect taxes. While the latter is non-
controversial, indirect tax incentives for export-
related-activities is a violation of WTO rules and
must be dismantled by 2015 for all but the poorest
countries.
5. Evidence on the effectiveness of
taxincentivesindevelopingcountries
In this section we begin by reviewing analytical
work on tax incentives in developing countries
and their impact on investment and growth. While
this literature is not abundant, a further source
of information on the cost of these policies is
available through the tax expenditure reports
prepared by countries’ Budget Offices. We
examine the tax expenditures of two economies in
the region: the Dominican Republic and Jamaica.
As we shall see, both countries provide significant,
and unaffordable, tax relief. However, the fact that
there is so little to show for these tax expenditures
should be taken as evidence that there is no
substitute for a targeted policy or for the need for
a well-designed tax system.
We will then review the aggressive tax planning
behavior of the Dominican Republic’s tourist sector
under the understanding that it does not differ
significantly with that of other countries in the
region. The response of the Dominican Republic’s
tax administration, employing transfer pricing rules
developed under the existing OECD guidelines
will be described as it can easily be adapted to
other Caribbean economies.
Zee et al (2002) paint a bleak picture when they
review the empirical work on the effectiveness of
tax incentives in developing countries: “The main
messages of this research are that tax incentives
canstimulateinvestmentbutthatacountry’soverall
economic characteristics may be more important
for the success or the failure of industries than any
tax incentive package; and even if tax incentives
stimulate investment, they are not generally cost
effective.”
Klemm and Van Parys (2009), analyze the use of
incentives as tools of tax competition, as well as
their effectiveness in attracting investment in
an econometric study covering 47 African, Latin
American and Caribbean countries over a 20-
year period5
. While they find evidence that tax
incentives provided by CIT rates and tax holidays
are effective in attracting FDI, this is not the case
in terms of increasing overall private investment or
growth, thereby concluding that the tax incentive’s
“ultimate benefits for the economy may be limited6
”
FromataxrevenueperspectiveNassar(2008)found
that CIT competition had let to the erosion of the
tax base in 15 Caribbean countries. He concluded
that the widespread use of tax holidays needed to
be eliminated if alternative policy proposals being
considered at that time – including accelerated
depreciation and tax harmonization – were to
have an impact on revenue collection. Sosa (2006)
9. 9
5
The Caribbean countries included in Klemm and Van Parys (2009) that are also considered in this Policy Note are Bahamas, Barbados, Dominican Republic, Guyana, Jamaica and Trinidad
and Tobago.
6
The authors offer two possible explanations for the limited impact of tax incentives: (1) tax incentives “mainly affect the ownership rather than the amount of capital in an economy” and (2)
“it is possible that higher FDI crowds out domestically financed investment, with no net effect”.
7
Chai and Goyal (2006) use the term concession instead of incentives in their study.
also finds disappointing results of tax incentives
in terms of generating new investments and their
high costs in terms of foregone tax revenue for
the small island states that comprise the Eastern
Caribbean Currency Union (ECCU). Chai and Goyal
(2008) also study the tax incentives provided by the
same group of countries and find “The costs are
very large, while the benefits appear to be marginal
at best. Foregone tax revenues range between
91/2 and 16 percent of GDP per year, whereas
total foreign direct investment does not appear to
depend on concessions. A rethinking of the use of
concessions in the region is needed urgently7
”.
TheBudgetOffice’staxexpenditurereportsprovide
a further estimate of the cost of tax incentives in the
Dominican Republic and Jamaica. The Dominican
Republic had a tax burden of around 15.5% of
GDP in 2010. VAT and excises are the largest
revenue sources, followed closely by the income
tax and social security taxes. Tax expenditures
are high, around 5.8% of GDP. Almost two thirds
of this amount provides relief from VAT, in an
attempt to mitigate the high adverse distributional
consequences of this tax. The remaining 2.2% of
GDP benefits export promotion zones, general
manufacturing and the tourist sector.
In the same year, Jamaica’s tax collection reached
23.6% of GDP, with a relatively high share of
income taxes in total tax receipts. Tax expenditures
are high; they represented 7.3% of GDP in 2009,
reflecting widespread use of tax instruments to
promote economic activities. Tax incentives are
grouped under four categories: Statutory Tax
Expenditures, Incentives, Discretional Waivers and
Waivers on Tax Arrears. What should be clear is
that this incentive system not only reduces public
revenue but it ends up undermining the capacity
of tax administration.
Table 2
Dominican Republic and Jamaica - Tax Burden and Tax Expenditures As a % of
GDP
Dominican Republic Jamaica
Income Tax 2.9 8.7
VAT 4.3 7.1
Excises 3.5 3.2
Trade 1.0 1.7
Others 3.8 2.9
Total 15.5 23.6
Tax Expenditures 5.8 7.3
Sources: IDB CIAT Data Base, Garcimartín and Diaz de Sarralde (2012), and IDB
(2010)
Tourism is possibly the most competitive sector
of Caribbean countries, in spite of which most
countries have awarded it with over-generous tax
incentives. Tourism on average accounts for almost
forty cents of every dollar of export earnings in the
region, and this amount can rise to almost eighty
cents in the cases of Barbados and The Bahamas.
However, tourism’s share of tax revenue tends to
be modest, in no small part due to aggressive tax
planning (Barreix and Velayos (2013)).
In order to improve tax collection from the tourism
sector, the Dominican Republic’s tax administration
(Dirección General de Impuestos Internos - DGII)
launched a thorough investigation of the country’s
all-inclusive hotel sector8
. The main findings were
that CIT and VAT liabilities were kept at a minimum
due to three reasons: (1) reservations were handled
by trading companies linked to the hotel operator
but located in countries with low or no tax; (2)
hotels declared daily rates to the tax administration
that were lower than the operating cost per guest;
(3) hotels reported permanent losses to the tax
administration as well as debts to the trading
companies.
10. 10
8
All-inclusive hotels represent 69% of rooms in the country’s hotel sector (Montero (2012).
9
A brief description of the proposed activities in the design of tax systems and institutional strengthening of tax administrations and customs over the 2011-15 Phase IV period is presented
in CARTAC (2010) Program Document.
The DGII then designed an arm’s length occupancy
rateusingtheOECD’sTransferPricingGuidelinesfor
Multinational Enterprises and Tax Administrations.
This rate was then used by DGII to assess CIT and
VAT liabilities for 2007/2010. According to Barreix
and Velayos (2010), DGII CIT assessments for
2007/2009 represented an average increase of
almost 820% of previous self-assessed obligations.
The comparable figure for VAT was 70% higher for
2007, 2009 and 2010. While hotels contested the
tax administration’s actions, the Courts ruled in
favor of the DGII.
In short, tax expenditure data show that regional
governments have showered economic activity
with all types of tax breaks that most countries
cannot afford. These tax expenditures have not led
to more competitive economies and have ended
up not only distorting the tax system but they
have also introduced horizontal inequity between
taxpayers as well. Moreover, even considering
tourism, the region’s most competitive sector,
bad policy design combined with aggressive
tax planning practices has undermined the tax
system and deprived governments of revenue
badly needed to finance social expenditures
and infrastructure needs. The conclusion by
now should be clear: tax incentives are a poor
substitute for a dysfunctional tax system. Countries
should consider rationalizing their tax system and
eventually think about introducing a modern and
cost-effective tax incentive scheme, targeted
to offset negative externalities that discourage
growth and the creation of quality jobs9
.
Conclusions
The challenge posed by the international economic
scenario has revived the debate regarding the
need to review the policy alternatives of a group
of small Caribbean and South American nations. A
keyelementofthisreviewistheuseoftaxincentives
to promote growth and job creation.
The starting point of any successful tax incentive
policy is a well-designed tax system. The tax system
should collect the revenue required to finance
government services and help fund infrastructure
needs and taxpayers should perceive it to be fair
and equitable, both horizontally and vertically.
Caution with tax incentives is warranted on
analytical and empirical grounds. With regards to
the former, a clear and limited and limited scope of
what can be accomplished with this instrument is
the starting point of any successful policy initiative.
Tax incentives can address negative externalities
that limit investments, determine their location and
discourage job creation. They cannot however be
used as a Deus ex machina that will solve all of an
economy’s structural deficiencies. They are not
and cannot be a substitute for structural reform.
Empirical evidence of successful tax incentive
schemes implemented in developing countries
is scarce and in any case discouraging. Studies
carried out in developing countries including the
Caribbean have found that while tax incentives may
attract FDI, they have not been able to increase
overall private investment or economic growth.
Moreover, not only have the ultimate benefits
proven to limited, the cost in terms of foregone
revenue has proven to be very high as exemplified
by the small island states of the Eastern Caribbean
Currency Union. Additional information on the
fiscal costs of tax incentives are available in tax
expenditure reports. The two countries examined
in this Policy Note provided a clear picture of the
difficulties of keeping tax expenditures in check as
the cost of tax relief has ballooned to the 6%/7%
of GDP range. The description of the aggressive
tax planning behavior of the Dominican Republic’s
tourism sector exemplifies the questionable
rationale of providing tax relief to one of the
region’s most competitive industries.
A good tax incentive system should provide an
explicitrationaleoftheexternalityitwilladdressand
well-defined values of the variables it is expected
to obtain (e.g. invested amounts, jobs, net exports,
etc.). This information should be assessed by a
government agency that is independent of political
pressure and its reports should be available to the
public. Smaller countries could consider creating a
regional tax incentive scheme, administered jointly
by a regional multilateral body of member states
to alleviate political pressure and better resist
games often played by investors on governments
11. 11
to enhance their benefits.
Transparency should continue during project
implementation. Monitoring by the tax
administration and the government agencies
responsible for promoting investments should
also be made public. Public disclosure of project
targets and their costs in terms of foregone tax
liabilities should be a feature of the system. Finally,
tax incentives should have a sunset clause.
In terms of implementation, the Corporate Income
Tax is the instrument of choice. Job creation may
warrant the use of reduced payroll taxes to finance
the social security system. Similarly, location in
less developed regions of a country may benefit
from exemptions in local taxes. The accelerated
depreciation allowance is a preferred instrument to
taxratesandtaxholidaysandtaxfilingshouldalways
be required. Incentives in terms of indirect taxation
should be limited to export oriented activities and
are essentially covered by the destination principle
of taxation under which goods and services should
be taxed wherever they are consumed.
Bibliography
Artana, Daniel and Templado, Ivana (2012), “Incentivos tributarios
a la inversión: ¿Qué nos dicen la teoría y la evidencia empírica
sobre su efectividad?”. Informe de Consultoría para el Banco
Interamericano de Desarrollo.
Barreix, Alberto and Velayos, Fernando (2013), “Towards a New
Form of International Taxation”, Intertax, Volume 41, March.
CARTAC (2010), “Program Document”, Caribbean Regional
Technical Assistance Center, International Monetary Fund.
Chai, Jingqing and Goyal, Rishi (2008), “Tax concessions and
Foreign Direct Investment in the Eastern Caribbean Currency
Union”, IMF Working Paper (WP/08/257), Washington D.C.;
International Monetary Fund.
DGII (2010), “Informe de Actividades: Servicio de Hotelería
Todo Incluido”, Dirección General de Impuestos Internos.
Departamento de Estudios Económicos y Tributarios, available
in: http://www.dgii.gov.do/publicaciones/estudios/Documents/
AnalisisSectoriServiciosalojamientotodoincluido.pdf
Easterly, William and Levine, Ross (2001), “It’s Not Factor
Accumulation: Stylized Facts and Growth Models”. World Bank
Economic Review 15:2.
Garcimartin, Carlos y Díaz de Sarralde, Santiago (2012), “Análisis
del sistema impositivo de la REPÚBLICA DOMINICANA”. Informe
de Consultoría para el Banco Interamericano de Desarrollo.
IMF (2013), “Caribbean Small States: Challenges of High Debt and
Low Growth”, Washington DC.
IDB (2010), “Jamaica: Preliminary Assessment for a
Comprehensive Tax Waiver Strategy”. Mimeo.
Klemm, Alexander and Van Parys, Stefan (2009), “Empirical
Evidence on the Effects of Tax Incentives”, IMF Working Paper
(WP/09/136), Washington D.C.; International Monetary Fund.
Montero, Wanda (2012), “Determinación de los Beneficios en
los Hoteles Todo Incluido en la República Dominicana”. Santo
Domingo, mimeo.
Nassar, Koffie (2008), “Corporate Income Tax Competition in the
Caribbean”, IMF Working Paper (WP/08/77), Washington D.C.;
International Monetary Fund.
OECD (2010), “Transfer Pricing Guidelines for Multinational
Enterprises and Tax Administrations”, Paris.
Porto, Luis (2010), “Un Marco Conceptual de Política Industrial:
aplicación al caso de la promoción de inversions en Uruguay
2005-2009”. Mimeo.
Prescott, Edward C. (1998), “Needed: A Theory of Total Factor
Productivity”, International Economic Review, Volume 39, Issue 3.
Sosa, Sebastian (2006), “Tax Incentives and Investment in the
Eastern Caribbean”, IMF Working Paper (WP/06/23), Washington
D.C.; International Monetary Fund.
World Bank (2012), “Tax Expenditures in Colombia: A proposal for
a systematic and integral review”, Washington, DC.
World Bank ( 2004), “ Tax Expenditures – Shedding Light on
Government Spending through the Tax System. Lessons from
Developed and Transition Economies”, Directions in Development
Series, Washigton, DC.
Zee, Howell, Stotsky, Janet and Ley, Eduardo (2002), “Tax
Incentives for Business Investment: A Primer for Policy Makers in
Developing Countries”, World Development 30:9.