Digital transformation, professionalization of the public administration, and greater international tax cooperation are driving the creation of a second mission within tax administrations beyond traditional tax control: thedata agency.
The creation of a global minimum tax on the profits of multinational corporations will ensure that, for the first time in history, there is a tax that applies equally in all countries. This is a game changer for international taxation because it will force multinational corporations to pay a minimum level of tax, regardless of where they are headquartered or operate.
Macroeconomic and fiscal policy is at the brink of a transformative shift due to the integration of artificial intelligence (AI), which is poised to revolutionize fiscal governance and policy formulation in Latin America and the Caribbean (LAC). The technology’s potential to enhance the precision of economic forecasts, optimize budget allocations, and streamline tax administration is immense. However, it also introduces complexities that demand forward-thinking fiscal strategies.
Latin America and the Caribbean are at a crossroads of environmental sustainability and inclusive development - and public governance plays a critical role in a fair green transition, especially given existing inequalities, limited fiscal capacity, and deteriorating public trust. How are public administrations in our region performing in these and other crucial areas for our economic and social development?
Public interest in policies promoting racial equity is growing worldwide, especially in Latin America and the Caribbean (LAC), a region known for large income and racial inequalities.
Amid the unprecedented challenges unleashed by the COVID-19 pandemic worldwide, Latin America and the Caribbean (LAC) faced a pressing need: have intelligent tools to anticipate and manage risks threatening the economic and fiscal stability of the region.
In response to this need, FISLAC (Fiscal Sustainability for Latin American and Caribbean Countries) was born, an innovative technological platform to strengthen strategic fiscal policy decision making, launched in the last quarter of 2022.
Treasury bond markets play a pivotal role in the economic development and fiscal management of fragile countries, as they allow governments to secure funds from both the public and institutional investors, reducing the pressure on governments to print out money to finance their budgets. This means treasury bond markets can contribute to more stable economies, reducing the risk of inflation and its negative impacts on growth and income distribution.
In recent years, the global economic landscape has been marked by unprecedented upheavals, including the Global Financial Crisis, the disruptions caused by the COVID-19 pandemic, and, more recently, geopolitical tensions. These crises have tested the resilience of fiscal frameworks, highlighting the pressing need for greater adaptability to navigate unforeseen challenges efficiently.
Latin America and the Caribbean (LAC) suffers from chronically low rates of investment, which hurts economic growth. Since high taxes on corporations disincentivize firms´ investments, an important policy question is whether the region should reduce taxation on corporate profits.
There is no turning back now, the ministries of economy and finance are at the heart of climate action. These ministries are crucial in the fight against climate change, as both the goals of decarbonization and those of resilience and biodiversity protection demand strategic actions that require their unique management, leadership, and coordination abilities.