When economies lose momentum and stagnation becomes entrenched, a shift in thinking and action is imperative. So urged Kofi Annan at a Davos panel decades ago—a call that now rings true for South Africa, where economic growth has languished and policy has too often wavered. The likes of Singapore, Vietnam and Poland have shown that sweeping, […]
The introduction of value added taxes has been widely perceived as successful, boosting government revenue and stimulating industrialisation. This contrasts with the empirical finding that, in countries that are heavily dependent on exports of natural resources, the introduction of VAT has led on average to lower tax revenues and did not stimulate industrialisation. The findings […]
As the debate around industrial policy intensifies, there is broad consensus on the rationale for government support to encourage private sector innovation. Economy-wide returns from research and development (R&D) in the private sector can be much greater the returns reaped by private firms alone. That’s because the knowledge generated by R&D often spills over to […]
South Asia is grappling with significant fiscal challenges that affect its governments’ ability to provide essential public services. Although its tax rates are often higher than average, the region struggles with low tax revenues. This blog explores the reasons behind these low revenues and discusses potential solutions to bridge the revenue gap and strengthen South […]
