Boosting private investment for growth and competitiveness in Argentina. A view from the OECD
OECD EMnet Business Meeting on Latin America
Buenos Aires, 14 November 2017
Boosting private investment for growth and competitiveness in Argentina. A view from the OECD
OECD EMnet Business Meeting on Latin America
Buenos Aires, 14 November 2017
A view on Latin America and Brazil: 'Better, but not good enough. Let’s go structural'
III Seminario LATAM Câmara de Comércio da Espanha no Brasil
Sao Paulo, March 16 2018
Panama has been one of the fastest growing economies in the world over the previous decade. In that short but vibrant time span, the country managed to double its income per capita. Growth has been spearheaded by the development of a modern service sector on the activities surrounding the Canal, and non-residential construction. Large public infrastructure projects and the private provision for infrastructure demanded by the service sector, have fueled growth and expanded job opportunities for non-skilled workers.
Two warning signals hover over Panama’s stellar performance. The construction sector has been growing at a rate equivalent to doubling its stock of structures every four years. The demand for non-residential construction cannot grow indefinitely at a higher rate than the rest of the economy. Once the stock of infrastructure required by the service sector is set and large infrastructure projects are completed, the rate of growth will recede and other sectors shall take the leading role. The deceleration of construction, characterized by a lower demand of non-skilled labor, will feed into the second warning signal: Income inequality. In spite of the minor improvements registered over the accelerated-growth spell, Panama remains amongst the world's top five most unequal countries. Both warning signals point to the need of further diversifying the Panamanian economy, and promoting economic activity in the provinces so as to deconcentrate growth and make it more inclusive.
Drawing on data and insight from the Grant Thornton International Business Report (IBR), the Grant Thornton Global Dynamism Index (GDI), the Economist Intelligence Unit (EIU) and the International Monetary Fund (IMF), this short report considers the outlook for
Latin America in 2014.
Colombia, key destination for new businessesprospectappt
Market research article that analyzes the opportunities for Foreign Direct Investment in Colombia. This article was written by Prospecta, a consultancy firm specialized in strategy, corporate governance and market entry based in Bogotá, Colombia
Published: 1/2014
Any recollection of the performance of the Latin American economies during the so-called "Lost Decade" of the 1980s should suffice to convince us how much the region has progressed over the last two decades. Particularly during the last ten years the region has enjoyed, for the most part, financial and price stability, reasonable economic growth, a substantial reduction in poverty rates, and improvements in income distribution.
As this report makes clear, however, it would be a terrible mistake for Latin American governments and societies to be complacent about the challenges in front of them. The report provides an excellent description of the challenges that will have to be overcome, but also rightly identifies the significant strengths that the Latin American economies already have.
- Download Latin America: The Long Road (PDF): http://bit.ly/1j8jdcL
- Order the print version of GLatin America: The Long Road: http://bit.ly/1e2QSxR
Visit the Credit Suisse Research Institute website: http://bit.ly/18Cxa0p
We know diversification, extending production into more complex and higher value added goods and services, is they key to the process and development. And yet diversification implies doing things you currently don´t know how to do. Countries need to add new capabilities, which they cannot possibly have. We also know that it is easier to “move brains” to new locations, than to move knowhow into brains, i.e. moving experienced workers into a new location is faster than building experienced workers. Is this easier or even feasible to do? We find this is highly contingent on the “Sense of Us” as it regards policy areas like immigration and business travel. The "Sense of Us" is the collective illusion defining a place sense of who they are. Here we present three examples of three different policy engagements in Panama, Saudi Arabia and Chiapas (México), to show how did we stumble into the sense of us enthuse places, and how understanding it and be able to shape in a more inclusive way is cornerstone in the efforts to develop and grow out of poverty.
In the decade 1999-2009, Jordan experienced an impressive growth acceleration, tripling its exports and increasing income per capita by 38%. Since then, a number of external shocks that include the Global Financial Crisis (2008-2009), the Arab Spring (2011), the Syrian Civil War (2011), and the emergence of the Islamic State (2014) have affected Jordan in significant ways and thrown its economy out of balance. Jordan’s debt-to-GDP ratio has ballooned from 55% (2009) to 94% (2018). The economy has continued to grow amidst massive fiscal adjustment and balance of payments constraints, but the large increase in population – by 50% between 2008 and 2017 – driven by massive waves of refugees has resulted in a 12% cumulative loss in income per capita (2010-2017). Moving forward, debt sustainability will require not only continued fiscal consolidation but also faster growth and international support to keep interest payments on the debt contained. We have developed an innovative framework to align Jordan’s growth strategy with its changing factor endowments. The framework incorporates service industries into an Economic Complexity analysis, utilizing the Dun and Bradstreet database, together with an evaluation of the evolution of Jordan’s comparative advantages over time. Combining several tools to identify critical constraints faced by sectors with the greatest potential, we have produced a roadmap with key elements of a strategy for Jordan to return to faster, more sustainable and more inclusive growth that is consistent with its emerging comparative advantages.
Session by Gabriela Ramos, Chief of Staff, G20 Sherpa and Special Counsellor to the Secretary-General, OECD
Among the myriad challenges facing our economies, few pose greater obstacles to better economic performance than the productivity slowdown and the rise in inequalities. Are they influencing each other? OECD work on the productivity-inclusiveness nexus, presented at the 2016 OECD Ministerial Council Meeting, sets out what we know about the interactions between productivity and inclusiveness, identifies knowledge gaps, and charts win-win policies that boost productivity and tackle inequality.
Despite advances in business and technological transformations, we can no longer assume that they will automatically lead to better economic performance and stronger productivity growth. And there is no guarantee that the benefits of higher levels of growth, or higher levels of productivity in certain sectors, will be shared across the population as a whole. This session will explore how policy makers can adopt a broader, more inclusive approach to productivity growth – one that considers how to expand the productive assets of an economy by investing in individuals’ skills and providing an environment where enterprises have a fair chance to succeed, including in lagging regions, generating strong and sustainable growth and opportunities for all.
Venezuela is undergoing one of the worst economic losses ever registered by any country in a three-year period, either by Latin American or world standards. Poverty rates have skyrocketed and stand today beyond 80%. We define two landmarks for recovery, and revise how much would Venezuela need to grow - oil and non-oil sectors - and how likely are those rates from the Venezuela and the world´s experience. We end up by outlining some of the adaptive challenges Venezuela would need to tackle to engine a sustainable recovery.
A view on Latin America and Brazil: 'Better, but not good enough. Let’s go structural'
III Seminario LATAM Câmara de Comércio da Espanha no Brasil
Sao Paulo, March 16 2018
Panama has been one of the fastest growing economies in the world over the previous decade. In that short but vibrant time span, the country managed to double its income per capita. Growth has been spearheaded by the development of a modern service sector on the activities surrounding the Canal, and non-residential construction. Large public infrastructure projects and the private provision for infrastructure demanded by the service sector, have fueled growth and expanded job opportunities for non-skilled workers.
Two warning signals hover over Panama’s stellar performance. The construction sector has been growing at a rate equivalent to doubling its stock of structures every four years. The demand for non-residential construction cannot grow indefinitely at a higher rate than the rest of the economy. Once the stock of infrastructure required by the service sector is set and large infrastructure projects are completed, the rate of growth will recede and other sectors shall take the leading role. The deceleration of construction, characterized by a lower demand of non-skilled labor, will feed into the second warning signal: Income inequality. In spite of the minor improvements registered over the accelerated-growth spell, Panama remains amongst the world's top five most unequal countries. Both warning signals point to the need of further diversifying the Panamanian economy, and promoting economic activity in the provinces so as to deconcentrate growth and make it more inclusive.
Drawing on data and insight from the Grant Thornton International Business Report (IBR), the Grant Thornton Global Dynamism Index (GDI), the Economist Intelligence Unit (EIU) and the International Monetary Fund (IMF), this short report considers the outlook for
Latin America in 2014.
Colombia, key destination for new businessesprospectappt
Market research article that analyzes the opportunities for Foreign Direct Investment in Colombia. This article was written by Prospecta, a consultancy firm specialized in strategy, corporate governance and market entry based in Bogotá, Colombia
Published: 1/2014
Any recollection of the performance of the Latin American economies during the so-called "Lost Decade" of the 1980s should suffice to convince us how much the region has progressed over the last two decades. Particularly during the last ten years the region has enjoyed, for the most part, financial and price stability, reasonable economic growth, a substantial reduction in poverty rates, and improvements in income distribution.
As this report makes clear, however, it would be a terrible mistake for Latin American governments and societies to be complacent about the challenges in front of them. The report provides an excellent description of the challenges that will have to be overcome, but also rightly identifies the significant strengths that the Latin American economies already have.
- Download Latin America: The Long Road (PDF): http://bit.ly/1j8jdcL
- Order the print version of GLatin America: The Long Road: http://bit.ly/1e2QSxR
Visit the Credit Suisse Research Institute website: http://bit.ly/18Cxa0p
We know diversification, extending production into more complex and higher value added goods and services, is they key to the process and development. And yet diversification implies doing things you currently don´t know how to do. Countries need to add new capabilities, which they cannot possibly have. We also know that it is easier to “move brains” to new locations, than to move knowhow into brains, i.e. moving experienced workers into a new location is faster than building experienced workers. Is this easier or even feasible to do? We find this is highly contingent on the “Sense of Us” as it regards policy areas like immigration and business travel. The "Sense of Us" is the collective illusion defining a place sense of who they are. Here we present three examples of three different policy engagements in Panama, Saudi Arabia and Chiapas (México), to show how did we stumble into the sense of us enthuse places, and how understanding it and be able to shape in a more inclusive way is cornerstone in the efforts to develop and grow out of poverty.
In the decade 1999-2009, Jordan experienced an impressive growth acceleration, tripling its exports and increasing income per capita by 38%. Since then, a number of external shocks that include the Global Financial Crisis (2008-2009), the Arab Spring (2011), the Syrian Civil War (2011), and the emergence of the Islamic State (2014) have affected Jordan in significant ways and thrown its economy out of balance. Jordan’s debt-to-GDP ratio has ballooned from 55% (2009) to 94% (2018). The economy has continued to grow amidst massive fiscal adjustment and balance of payments constraints, but the large increase in population – by 50% between 2008 and 2017 – driven by massive waves of refugees has resulted in a 12% cumulative loss in income per capita (2010-2017). Moving forward, debt sustainability will require not only continued fiscal consolidation but also faster growth and international support to keep interest payments on the debt contained. We have developed an innovative framework to align Jordan’s growth strategy with its changing factor endowments. The framework incorporates service industries into an Economic Complexity analysis, utilizing the Dun and Bradstreet database, together with an evaluation of the evolution of Jordan’s comparative advantages over time. Combining several tools to identify critical constraints faced by sectors with the greatest potential, we have produced a roadmap with key elements of a strategy for Jordan to return to faster, more sustainable and more inclusive growth that is consistent with its emerging comparative advantages.
Session by Gabriela Ramos, Chief of Staff, G20 Sherpa and Special Counsellor to the Secretary-General, OECD
Among the myriad challenges facing our economies, few pose greater obstacles to better economic performance than the productivity slowdown and the rise in inequalities. Are they influencing each other? OECD work on the productivity-inclusiveness nexus, presented at the 2016 OECD Ministerial Council Meeting, sets out what we know about the interactions between productivity and inclusiveness, identifies knowledge gaps, and charts win-win policies that boost productivity and tackle inequality.
Despite advances in business and technological transformations, we can no longer assume that they will automatically lead to better economic performance and stronger productivity growth. And there is no guarantee that the benefits of higher levels of growth, or higher levels of productivity in certain sectors, will be shared across the population as a whole. This session will explore how policy makers can adopt a broader, more inclusive approach to productivity growth – one that considers how to expand the productive assets of an economy by investing in individuals’ skills and providing an environment where enterprises have a fair chance to succeed, including in lagging regions, generating strong and sustainable growth and opportunities for all.
Venezuela is undergoing one of the worst economic losses ever registered by any country in a three-year period, either by Latin American or world standards. Poverty rates have skyrocketed and stand today beyond 80%. We define two landmarks for recovery, and revise how much would Venezuela need to grow - oil and non-oil sectors - and how likely are those rates from the Venezuela and the world´s experience. We end up by outlining some of the adaptive challenges Venezuela would need to tackle to engine a sustainable recovery.
Presentación realizada por Sebastián Nieto Parra y Juan Vázquez Zamora.
Lima, Perú
16 de Marzo, 2016
Universidad del Pacífico
Accede al documento completo: http://bit.ly/2546iA3
Hacia una nueva asociación con China
Perspectivas Económicas de América Latina 2016
Presentación en el Senado de México (2/02/2016)
via @AngelMelguizo head of the Latin American and Caribbean Unit at @OECD_Centre
CESCE presenta el 'Panorama Internacional 2016', una obra que revisa el estado actual de la economía mundial y analiza las 5 cuestiones de mayor impacto global
Session by Adrian Blundell-Wignall, Acting Director, Special Advisor to the Secretary-General for Financial Markets, OECD Directorate for Financial and Enterprise Affairs
The OECD’s research on Finance and Inclusive Growth has shown that over the past fifty years, credit by banks and other intermediaries to households and businesses has grown three times as fast as economic activity. While greater levels of stock market financing can boost growth, at today’s level of financial development further expansion of bank credit to the private sector is shown to not only slow growth in most OECD countries but also contribute to inequality as better-off households tend to benefit more from financial leverage. Therefore, policy makers should i.a. implement measures to reduce explicit and implicit subsidies to too-big-to-fail financial institutions and reduce the tax bias against equity. To make the financial sector more inclusive and work for people, we must also ensure that companies invest in the real economy. Data analysis of 11 000 of the world’s largest companies has shown that there is a misallocation of capital that needs to be improved in order to foster productivity growth and long-term value creation that can allow for inclusive growth. Promoting competition can support such efforts and also limit unproductive concentration of profits and wealth. New analysis also shows a fragmentation of productivity that needs to be addressed, with a majority of companies sitting in a ‘trough’ of low productivity levels and moderate growth from which it is hard to exit. The current low-interest, low-growth environment makes it also more difficult for pension funds and life insurers to keep their financial promises of providing adequate retirements incomes. These institutional investors are thus driven to pursue higher-risk investment strategies that could ultimately undermine their solvency. This potentially jeopardises the secure retirement especially of the poorest of our citizens.
20 trends you as a business leader need to know (and eventually master) as you draft and execute your long term growth (and survival) strategy - see more @ sws.ms
Session by Rolf Alter, OECD Director for Public Governance and Territorial Development.
This session will cover the challenges critical risks pose for OECD as well as non-OECD countries, the implications of increasing economic losses from disasters and how these pose particular challenges for regional growth recovery. How well governments manage disasters is a key test for the trust of citizens in government. Drawing on successful country practices to manage risks and invest in a sustainable future, the session will explain the work of the OECD High Level Risk Forum to foster exchanges among countries with the aim to improve their resilience.
José Antonio Ardavin
Director Interino
Centro de la OCDE en México para América Latina
Simposio "La innovación como instrumento para fomentar la competitividad"
H.Cámara de Diputados
México D.F. 09 de diciembre de 2009
HLEG thematic workshop on Measuring Inequalities of Income and Wealth, Andrea...StatsCommunications
Presentation at the HLEG thematic workshop on Measuring Inequalities of Income and Wealth, 15-16 September 2015, Berlin, Germany, http://oe.cd/hleg-workshop-inequalities-income-and-wealth
This paper investigates the relationship between tax structures and economic growth in a panel of developed and developing countries, using the new ICTD GRD. It sought to understand the effects of tax structure on GDP growth, since many previous studies have only focused on OECD countries.
It is also motivated by the IMF Policy prescription (IMF 2011), of on-going shift from reliance on trade taxes to VAT, especially in low income countries. It further sought to understand the implications of such structural shifts with studies showing that revenue recovery following trade liberalisation has been poor in low- and middle- income countries (Baunsgaard & Keen, 2010).
Results suggest that shifts away from trade and consumption toward income taxes have had a negative impact on GDP growth rates in developing countries. This negative effect is of greater magnitude through personal income taxes (PIC). Consequently, this study provides new evidence of potentially harmful effect of trade liberalisation on the GDP growth rates. The study also gives a clear picture of low tax reliance on indirect taxes between in low-income countries.
Revenue neutral shifts away from trade taxes to consumption taxes have no negative effect on growth. However, revenue neutral shifts towards income, specifically personal income taxes are potentially harmful to GDP growth rates. Key findings hold following the exclusion of resource-rich countries and after controlling for degree of openness.
Revenue Statistics in Asian and Pacific economies 2020OECDtax
Revenue Statistics in Asian and Pacific Economies is jointly produced by the Organisation for Economic Co-operation and Development (OECD)’s Centre for Tax Policy and Administration (CTP) and the OECD Development Centre (DEV) with the co-operation of the Asian Development Bank (ADB), the Pacific Island Tax Administrators Association (PITAA), and the Pacific Community (SPC) and the financial support from the governments of Ireland, Japan, Luxembourg, Norway, Sweden and the United Kingdom. This edition includes a special feature on the tax policy and administration responses to COVID-19 in Asian and Pacific Economies.
World economy charts case study presented by a Big 4
World economy charts case study presented by a Big 4
World economy charts case
World economy charts case study presented by a Big 4
World economy charts case study presented by a Big 4World economy charts case study presented by a Big 4
World economy charts case study presented by a Big 4
World economy charts case study presented by a Big 4World economy charts case study presented by a Big 4World economy charts case study presented by a Big 4World economy charts case study presented by a Big 4World economy charts case study presented by a Big 4World economy charts case study presented by a Big 4World economy charts case study presented by a Big 4World economy charts case study presented by a Big 4World economy charts case study presented by a Big 4World economy charts case study presented by a Big 4World economy charts case study presented by a Big 4World economy charts case study presented by a Big 4World economy charts case study presented by a Big 4World economy charts case study presented by a Big 4study presented by a Big 4
Demographic Change and Expenditure Pressures in IrelandDaragh McCarthy
Presentation by Dr Thomas Conefrey—Chief Economist, Irish Fiscal Advisory Council—focuses on government spending and presents preliminary work that attempts to quantify the likely pressures on the government finances in Ireland due to population ageing and other demographic trends over the next 50 years.
Managing Government Balance Sheet: a Focus on Public Assets - Manal Fouad, IMFOECD Governance
This presentation was made by Manal Fouad, IMF, at the 19th OECD Senior Financial Management and Reporting Officials Symposium held at the OECD Conference Centre, Paris, on 4-5 March 2019
The OECD Development Centre’s Social Institutions and Gender Index (SIGI) is a cross-country measure of discrimination against women in social institutions (formal and informal laws, social norms, and practices) across 160 countries. Discriminatory social institutions intersect across all stages of girls’ and women’s life, restricting their access to justice, rights and empowerment opportunities and undermining their agency and decision-making authority over their life choices. As underlying drivers of gender inequalities, discriminatory social institutions perpetuate gender gaps in development areas, such as education, employment and health, and hinder progress towards rights-based social transformation that benefits both women and men.
The SIGI covers five dimensions of discriminatory social institutions, spanning major socio-economic areas that affect women’s lives: discriminatory family code, restricted physical integrity, son bias, restricted resources and assets, and restricted civil liberties. The SIGI’s variables quantify discriminatory social institutions such as unequal inheritance rights, early marriage, violence against women, and unequal land and property rights. Through its 160 country profiles, country classifications and unique database, the SIGI provides a strong evidence base to more effectively address the discriminatory social institutions that hold back progress on gender equality and women’s empowerment!
Relationship between growth, financial development and income inequality.
- Is there nonlinearity in the relationship?
- What are the factors that affect the degree of impact of financial development on income inequality?
Tendencia de los ingresos tributarios
Estructura de los ingresos tributarios en América Latina
Ingresos fiscales provenientes de recursos naturales no renovables en América Latina
Impuestos, recursos naturales y protección social
Conclusiones
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
Preliminary findings _OECD field visits to ten regions in the TSI EU mining r...OECDregions
Preliminary findings from OECD field visits for the project: Enhancing EU Mining Regional Ecosystems to Support the Green Transition and Secure Mineral Raw Materials Supply.
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
RFP for Reno's Community Assistance CenterThis Is Reno
Property appraisals completed in May for downtown Reno’s Community Assistance and Triage Centers (CAC) reveal that repairing the buildings to bring them back into service would cost an estimated $10.1 million—nearly four times the amount previously reported by city staff.
Monitoring Health for the SDGs - Global Health Statistics 2024 - WHOChristina Parmionova
The 2024 World Health Statistics edition reviews more than 50 health-related indicators from the Sustainable Development Goals and WHO’s Thirteenth General Programme of Work. It also highlights the findings from the Global health estimates 2021, notably the impact of the COVID-19 pandemic on life expectancy and healthy life expectancy.
Working with data is a challenge for many organizations. Nonprofits in particular may need to collect and analyze sensitive, incomplete, and/or biased historical data about people. In this talk, Dr. Cori Faklaris of UNC Charlotte provides an overview of current AI capabilities and weaknesses to consider when integrating current AI technologies into the data workflow. The talk is organized around three takeaways: (1) For better or sometimes worse, AI provides you with “infinite interns.” (2) Give people permission & guardrails to learn what works with these “interns” and what doesn’t. (3) Create a roadmap for adding in more AI to assist nonprofit work, along with strategies for bias mitigation.
3. Revenue Statistics in Latin America and the Caribbean
• Detailed, internationally comparable data on tax revenues in Latin
American and Caribbean (LAC) economies
• 22 LAC economies from 1990-2014
• Comparisons with the average for OECD economies (and on-line data
for 32 non-LAC countries)
• Based on OECD Revenue Statistics methodology, an essential reference
source for OECD member countries
• Joint project with the Economic Commission for Latin America and the
Caribbean (ECLAC) , the Inter-American Centre for Tax Administrations
(CIAT), and Inter-American Development Bank (IDB)
4. Revenue Statistics in Latin America and the Caribbean
I. Tax revenue trends 1990-2014
II. Tax structure
III. Fiscal revenues from non-renewable natural resources
IV. Future steps and conclusions
5. Tax revenues in LAC increased slightly in 2014, but continue
to be considerably lower than in most OECD countries
Total tax revenues in LAC and OECD, 1990-2014
(Percentage of GDP)
0
5
10
15
20
25
30
35
40
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
Difference (A-B) LAC (22) (A) OECD (34) (B)
6. Wide national variations exist across LAC countries
(‘Americas Latinas’)
0 10 20 30 40
OECD (34)
LAC (22)³
Guatemala
Dominican Republic
El Salvador
Paraguay²
Bahamas
Panama
Venezuela²
Peru
Ecuador
Mexico²
Honduras
Chile
Colombia
Nicaragua
Costa Rica
Jamaica²
Uruguay
Trinidad and Tobago
Bolivia²
Barbados²
Argentina
Brazil
Total tax revenues in LAC countries and OECD, 2014
(Percentage of GDP)
7. Tax revenues rose significantly across the region over the
1990-2014 period
Tax to GDP ratios in LAC in 1990 and 2014
ARG
BHS
BRB
BOL
BRA
CHL
COL
CRI
DOM
ECU
SLV
GTM
HND
JAM3
MEX
NIC2
PAN
PRY
PER
TTO
URY
VEN2
5
10
15
20
25
30
35
40
5 10 15 20 25 30 35 40
2014
1990
8. Nevertheless, tax revenues barely increased between 2013
and 2014
Tax to GDP ratios in LAC in 2013 and 2014
ARG
BHS
BRBBOL
BRA
CHLCOL
CRI
DOM
ECU
SLV
GTM
HND
JAM
MEXNICPAN
PRY
PER
TTOURY
VEN
5
10
15
20
25
30
35
40
5 10 15 20 25 30 35 40
2013
2014
9. Tax revenues increase over GDP in 2014 was driven by
income taxes, and taxes on goods and services
-0.04 -0.02 0 0.02 0.04 0.06 0.08 0.1 0.12 0.14 0.16
Property
Other income tax
Others
Payroll
Social security
Corporate income tax
Goods and services
Personal income tax
Tax revenues growth in LAC, 2014
(Percentage points of GDP)
10. Revenue Statistics in Latin America and the Caribbean
I. Tax revenue trends 1990-2014
II. Tax structure: tax sources and administration
III. Fiscal revenues from non-renewable natural resources
IV. Future steps and conclusions
11. Tax collection in LAC is based on high indirect tax receipts
(general taxes), while direct taxation (i.e. personal) is low
Tax sources in LAC and OECD, 2013
(Tax collection as percentage of total tax revenues)
27.4
16.6
31.2
18.3
6.5
LAC (22)1
33.7
26.1
20.2
10.5
9.5
OECD (34)2
Taxes on income andprofits Social-security contributions General consumption taxes
Specific consumption taxes Other taxes
12. However, since the 2000s, taxes on income and profits have
increased their contribution…
0
10
20
30
40
50
60
1990
92
94
96
98
2000
02
04
06
08
10
12
2014
LAC
0
10
20
30
40
50
60
1990
92
94
96
98
2000
02
04
06
08
10
12
2014
OECD
Taxes on income and profits (1000) Social-security contributions (2000) Taxes on goods and services (5000)
Tax sources in LAC and OECD, 1990-2014
(Tax collection as percentage of total tax revenues)
13. … notably thanks to the corporate income tax, but also to
personal income taxes
0
2
4
6
8
10
12
1990
92
94
96
98
2000
02
04
06
08
10
12
2014
LAC
0
2
4
6
8
10
12
1990
92
94
96
98
2000
02
04
06
08
10
12
2014
OECD
Personal income tax Corporate income tax Other income tax
Social-security contributions Taxes on goods and services
Tax sources in LAC and OECD, 1990-2014
(Percentage of GDP)
14. Again, tax structures reflects a wide variation across the LAC
region
Tax sources in LAC countries, 2014
(Tax collection as percentage of total tax revenues)
0 20 40 60 80 100
OECD (32)²
LAC (22)³
Bahamas
Bolivia¹
Paraguay¹
Costa Rica
Argentina
Brazil
Uruguay
Ecuador
Panama
Barbados¹
Honduras
Nicaragua
Mexico²
Guatemala
Dominican…
Colombia
Venezuela¹
Chile
Jamaica¹
El Salvador
Peru
Trinidad…
Income and profits Property Social security contributions Payroll Goods and services Other
15. In the Americas Latinas, value added taxes raised more
revenues than income taxes in most countries…
VAT vs Income taxes in LAC countries and OECD, 2014
(Percentage of GDP)
0
5
10
15
20
25
VAT Taxes on income and profits
16. … mostly explained by weak personal income tax collection
Personal and Corporate income tax revenues in ALC countries and OECD, 2014
(Percentage of GDP)
Note: For OECD, the data for 2013 are used. The share of taxes on income and the share of taxes on profits may not add up to the total share of
taxes on incomes and profits due to unallocable revenue. Only countries that could allocate 75% or more of revenue of taxes on incomes and
profits into the sub categories taxes on income and taxes on profits are shown in the figure above.
0
2
4
6
8
10
12
14
16
18
TTO PER COL CHL BOL HND BRA ARG SLV GTM DOM BRB URY CRI JAM OECD
Personal income tax Corporate income tax
17. Sub-national government finances are also limited in LAC…
Tax revenues by sub-sectors of general government in LAC and OECD, 2013
(Receipts as percentage of total tax revenue)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
LAC
OECD
Central government State or local Social-Security Funds Supranational
18. …with the exceptions of Argentina, Brazil and Colombia
Tax revenues by sub-sectors of general government in LAC countries, 2014
(Receipts as percentage of total tax revenue)
0 10 20 30 40 50 60 70 80 90 100
Venezuela
Uruguay
Trinidad and Tobago
Peru
Paraguay
Panama
Nicaragua
Mexico
Jamaica
Honduras
Guatemala
El Salvador
Ecuador
Dominican Republic
Costa Rica
Colombia
Chile
Brazil
Bolivia
Barbados
Bahamas
Argentina
LAC
Central government
Gobierno central
State or local Social-Security Funds
Fondos de seguridad social
19. Revenue Statistics in Latin America and the Caribbean
I. Tax revenue trends 1990-2014
II. Tax structure
III. Fiscal revenues from non-renewable natural resources
IV. Future steps and conclusions
20. Fiscal revenues from non-renewable natural resources are
key in half of the countries in LAC
Non-renewable natural resources revenues in LAC countries, 2014
(USD billion and percentage of GDP)
0 20 40 60 80 100
Jamaica
Suriname
Dominican Republic
Trinidad and Tobago
Bolivia (Plur. State of)
Peru
Chile
Argentina
Ecuador
Colombia
Brazil
Venezuela (Bol. Rep. of)
Mexico
As % of GDP
PEMEX
8.9
12.3
0.5
5.8
0.04
4.2
1.7
10.8
1.9
1.8
2.3
13.8
7.3
21. The reliance on non-renewable natural resources explains
the fall in total revenues in these countries in 2014…
2013 (r) 2014 (p) Δ 2013 (r) 2014 (p) Δ 2013 (r) 2014 (p) Δ
Argentina 1.8 1.9 0.1 1.7 1.8 0.1 0.1 0.1 0.0
Bolivia (Plur. State of) 14.2 13.8 -0.4 13.5 13.1 -0.4 0.7 0.7 0.0
Brazil 2.2 1.7 -0.5 1.8 1.6 -0.2 0.4 0.1 -0.3
Chile 2.1 1.8 -0.3 .. .. .. 2.1 1.8 -0.3
Colombia 5.1 4.2 -1.0 4.8 3.9 -0.9 0.4 0.3 -0.1
Dominican Republic 0.6 0.5 -0.1 .. .. .. 0.6 0.5 -0.1
Ecuador 12.1 10.8 -1.3 12.1 10.8 -1.3 .. .. ..
Jamaica 0.1 0.0 -0.1 .. .. .. 0.1 0.0 -0.1
Mexico 8.0 7.3 -0.8 7.8 7.0 -0.8 0.2 0.2 0.0
Peru 2.8 2.3 -0.5 1.9 1.6 -0.3 0.9 0.7 -0.3
Suriname 6.2 5.8 -0.4 5.5 5.0 -0.6 0.6 0.9 0.2
Trinidad and Tobago 11.7 12.3 0.5 11.7 12.3 0.5 .. .. ..
Venezuela (Bol. Rep. of) 12.2 8.9 -3.3 12.2 8.9 -3.3 .. .. ..
Latin America and the
Caribbean 6.1 5.5 -0.6 7.3 6.6 -0.7 0.6 0.5 -0.1
Country
Total Hydrocarbons1
Mining
Public revenues from non-renewable natural resources in LAC countries, 2013-2014
(Percentage of GDP)
22. … and more falls are to come in 2015
Non-renewable natural resource revenues in LAC countries, 2000-2015(e)
(Percentage of GDP)
Notes:
Mining covers Argentina, Bolivia, Brazil, Chile, Colombia, Dominican Republic, Jamaica, Mexico, Peru and Suriname.
Hydrocarbons include Argentina, Bolivia , Brazil, Colombia, Ecuador, Mexico, Peru, Suriname, Trinidad and Tobago
and Venezuela
23. Looking forward, commodity prices are not expected to return to
pre-2014 levels soon
Commodity prices
(Observed and forecasts ; index 100 = 2005)
0
50
100
150
200
250
2011 2012 2013 2014 2015 2016 2017
Minerals and metals Crude oil
Source: ECLAC, based on data from IMF
24. Revenue Statistics in Latin America and the Caribbean
I. Tax revenue trends 1990-2014
II. Tax structure
III. Fiscal revenues from non-renewable natural resources
IV. Future steps and conclusions
25. • Improve direct tax data
• Deepen the analysis on regional governments
• Broaden the analysis on commodity revenues (i.e. food)
• Continue expanding country coverage
• …
Future steps
26. Future steps (I): Within taxes on income and profits, there
is still room for improvement in data allocation
32%
61%
23%
LAC
76%
25%
2%
OECD
Personalincometax Corporateincometax Unallocableincometax
27. Future steps (II): Data and analysis by sub-sectors of
government merits (more) attention
Tax revenues by sub-sectors of general government in LAC countries, 2014
(Receipts as percentage of total tax revenue)
0 10 20 30 40 50 60 70 80 90 100
Venezuela
Uruguay
Trinidad and Tobago
Peru
Paraguay
Panama
Nicaragua
Mexico
Jamaica
Honduras
Guatemala
El Salvador
Ecuador
Dominican Republic
Costa Rica
Colombia
Chile
Brazil
Bolivia
Barbados
Bahamas
Argentina
LAC
Central government
Gobierno central
State or local Social-Security Funds
Fondos de seguridad social
28. Future steps (III): Public revenues from food commodities
are a relevant part of the tax story in the LAC region
Source: Alberola, I. Kataryniuk, A. Melguizo and R. Orozco (2015), “Fiscal policy and the cycle in Latin
America: the role of financial conditions and fiscal rules” , BIS Working Paper 543
Fiscal balance in Argentina, 2000-2013
(Percentage of GDP)
-4.00%
-3.00%
-2.00%
-1.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013.0 2014
Commodity linked Argentina Primary balance Structural Primary balance
29. Future steps (and IV): Continue expanding country coverage
• Antigua and Barbuda
• Belize
• Cuba
• Dominica
• Grenada
• Guyana
• Haiti
• St. Kitts and Nevis
• St. Lucia
• St. Vincent and the Grenadines
• Suriname
• …
30. Conclusions (I): Beyond Americas Latinas, tax revenue
trends confirm LAC-OECD convergence has stalled
• The average tax burden in LAC increased from 21.5% in 2013 to 21.7% GDP
in 2014. This followed a rise of 1.5 percentage since 2010, reversing the
decline during the financial crisis
• The average tax burden in LAC countries is still far behind from the OECD
average (34.4% of GDP in 2013). The gap has remained steady at 13
percentage points since 2008
• There is a wide variation across countries. The tax to GDP ratios in LAC
countries range from 12.6% (Guatemala), 14.1% (Dominican Republic) and
16.5% ( El Salvador) to 30.4% (Barbados), 32.2% (Argentina) and 33.4%
(Brazil)
31. Conclusions (II): Tax structures in LAC countries are
centralised, and heavily based on indirect taxes
• Following strong growth over the past decades, general consumption taxes
(mainly VAT and sales taxes) account for nearly one third of tax revenues in
the LAC countries in 2013 (31.2%), compared with one fifth (20.2%) in OECD
• Contributions from direct taxes are significantly lower in LAC countries.
Taxes on income and profits accounted for 27.4% of revenues on average in
the LAC countries and social security contributions represented 16.6% (in
OECD the corresponding figures are 33.7% and 26.1% respectively)
32. Conclusions (III): Public revenues are decreasing in some
commodity-rich countries in LAC
• The sharp decline in international oil prices resulted in a significant
reduction of hydrocarbon-related revenues in the region (from 7.3% of GDP
in 2013 to 6.6% of GDP in 2014). Non-tax revenues bore the brunt of the
decline, falling sharply in Ecuador and Venezuela
• In 2015, hydrocarbon revenues are estimated to have returned to their pre-
boom level, falling from an average of 6.6% of GDP in 2014 to 4.5% of GDP
• Mining revenues were also affected by falling prices, dropping to 0.5% of
GDP on average from 0.6% of GDP in 2013. Tax revenues, derived mainly
from corporate income taxes, fell sharply as profit margins in the sector
tightened. The rise in production coupled with currency depreciations
served to smooth the shock
33. • Given the persistent economic slowdown and the weak price projections for
most commodities, a no-policy change scenario suggests that the gap in tax
revenues between LAC countries and the OECD will persist
• Some countries in the region are implementing/defining/debating structural
fiscal reforms that increase revenues. Sufficiency, efficiency, equity and
simplicity principles should drive these process, accompanied by institutional
improvements (e,g, fiscal frameworks, rules, councils)
• For non-renewable natural resources, institutions to ensure commodity booms
traslate into sustainable economic development should be implemented (e.g.
stabilisation funds)
Conclusions (and IV): Policy action is needed
34. Abiertos a escuchar más ideas - Gracias!
www.latameconomy.org/es/revenue-statistics/