Latin American countries need to invest more public funds in health, education services, infrastructure and innovation, but to afford this they will have to make major changes in the way their tax systems operate, according to the OECD's newly published Latin American Economic Outlook.
At present, surveys show, fewer than one in four Latin Americans believes that money from taxes is being well spent. With more than 200 million people - nearly 40 percent of the population - living in poverty, the region has the highest levels of inequality of any region in the world. Stronger economic growth is likely to help raise fiscal revenues, but Latin American countries need to spend these revenues in a more effective and fairer manner, in order to reduce poverty and maintain citizens' trust in democratic systems.
Presenting the report at a conference in Santiago de Chile, OECD Secretary-General Angel Gurría noted that Latin America is becoming an increasingly important player in the world economy. However, he stressed the need for further economic reforms in order to underpin improved prosperity.
See full Press Release.
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