IDRC session on new tax instrument during debt crisis

This session explore options for tax policies and resource mobilisation at a time of debt crisis. Many low-income countries are facing compounding crises of the impact of the pandemic, growing public debt, impacts of climate change, and most recently the impact of the war in Ukraine and rising interest rates. These compounding crises lead to and amplify urgent financing needs and innovations, both internationally like the African liquidity and stability mechanism and the recycling of SDRs, and at national levels where countries face pressures both to reduce spending and raise domestic resources.

Based on and complementing new research by a consortium of organisations ( AERC, IDRC, ERF, FDL, PEP, RedSur), this session will focus on innovation in and experience with management of the compounding crises. We will invite papers and presentations that focus on ways in which debt management and new tax instrument can mobilise needed long-term investments, to achieve the SDG, Paris climate commitments, and the much-needed infrastructure for the economic transformation, particularly of low-income economies.

The session and the research this represents will contribute to policy advice with practical examples and potentials for managing those compounding crises. It aims to inform building resilience of lower-income economies in the face of multiple external crises.

This session is proposed by IDRC’s Sustainable Inclusive Economies program, and the panel builds on the research initiative on the growing debt crisis (summary of work so far available here and paper for T20 available here.

Panelists

• Mma Amara Ekeruche, Centre for the Study of the Economies of Africa, Debt for Climate and Development Swaps in Nigeria – expected  to be in person
• Luis Miguel Galindo, Universidad Nacional Autonoma de México), Just transition and green fiscal policy – virtual
• Ibrahim El-Badawi, Economic Research Forum, Embarking on a Path of Renewal in MENA – virtual
• Ramiro Albrieu, Centro de Estudios de Estado y Sociedad), Rethinking sustainability in developing and low-income countries – virtual

Discussants

• Shanta Devrajan  – in person
• Cecilia Alemany Billorou – virtual
• Moderators: Arjan de Haan IDRC and Yasmine Fahim