Africa, Latin America Seek Fiscal Reforms by ProQuest

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									                                                                                             Commission for Latin America and
     W o r l d     T r e n d s        &    F o r e c a s t s                                 the Caribbean. The countries most at
                                                                                             risk are those most dependent on re-
                                                                                             source-based revenues and import



Government
                                                                                             taxes; as trade suffers, so do revenue
                                                                                             streams.
                                                                                                Without cooperative action, the
                                                                                             developing world could drift further
                                                                                             from achieving the UN’s Millennium
                                                                                             Development Goals, warns Abdoulie
Africa, Latin America Seek Fiscal Reforms                                                    Janneh, UN under-secretary-general
In a global economic crisis, the developing world finds itself on its own.                   and executive secretary of the Eco-
                                                                                             nomic Commission for Africa (ECA).



F
                                                                                                “The global economic and finan-
     oreign aid and investment in the         more private spending. A significant           cial crisis began just as it seemed that
     development of Africa, Latin             amount would most likely be put                the worst was over with regard to
     America, and the Caribbean               away in savings,” pointed out Alicia           the food and fuel crisis,” Janneh told
have been seriously impaired by the           Bárcena, Uruguay’s minister of econ-           the June 2009 meeting of the African
recent global economic crisis. Lead-          omy and finance. “Increasing spend-            Union and the ECA in Cairo. “After
ers in these regions are thus looking         ing is more effective, but countries           growing at an average of nearly 6%
inward to find the resources neces-           do not always have projects ready              over the preceding half decade, Afri-
sary to support their own economies           that may be implemented rapidly.”              ca’s average growth rate is expected
and overcome longstanding, nettle-               As the international crisis contin-         to decline by up to four percentage
some obstacles to sustainable devel-          ues, limiting resources available to           points this year.”
opment.                                       the Third World, internal tensions                Janneh predicts an increase of 3
  In Uruguay in May 2009, policy of-          may grow within developing coun-               million jobless Africans in 2009, com-
ficials from the European Union,              tries. For example, governments may            pounding already critical social
Latin America, and the Caribbean              see demand for policies that subsi-            problems for the continent, which
debated the impacts of various ap-            dize vulnerable sectors, but they will         has little in the way of unemploy-
proaches to fiscal reform, such as            also face pressures to avoid protec-           ment benefits or other social safety
lowering taxes rather than raising            tionism.                                       nets to protect people.
them in order to increase private in-            Chile, Colombia, Mexico, Peru,                 “As Africa grapples with the fall-
vestment.                                     and Venezuela are already experienc-           out of the financial crisis, it is imper-
  “Lowering taxes is easier
								
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