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The Challenges of Fiscal Consolidation and Debt Reduction in the Caribbean, Charles Amo Yartey, Machiko Narita, Shelton Nicholls, Joel Chiedu Okwuokei

This paper examines debt dynamics in the Caribbean and discusses policy options for reducing the high debt levels. Based on empirical studies of factors underlying global large debt reduction episodes, important policy lessons are drawn for the Caribbean. The analysis shows that major debt reductions are associated with strong growth and decisive and lasting fiscal consolidation efforts. Since growth in the current environment is virtually nonexistent, significant fiscal consolidation is inevitable in the region. Better control of the public wage bill, increasing public sector efficiency and tackling transfers are the obvious targets to reduce spending. On the revenue side, there is ample room to reduce tax expenditures, eliminate distortions while broadening the tax base. Fiscal consolidation needs to be complemented by a comprehensive debt reduction strategy including tax policy reforms and structural reforms to boost competiveness
Table Of Contents
Cover; Abstract; Contents; I. Overview of Issues; Tables; 1. Caribbean Economies: Debt to GDP Ratios; II. Fiscal Performance in the Caribbean Before and After the Global Financial Crisis; A. Fiscal Performance in the Caribbean During the Past Two Decades; B. Public Debt and Fiscal Balances During the Financial Crisis; C. Accounting for Public Debt Accumulation During the Crisis; Boxes; 1. Accounting for Public Debt; III. How Can High Public Debt Levels in the Caribbean be Reduced?; A. Global large Debt Reductions-Stylized Facts; B. Factors Behind the Global Decline in Public Debt to GDP Ratio
Literary Form
non fiction
At head of title: Western Hemisphere Department -- verso of t.p
Physical Description
1 online resource (47 p.)
Specific Material Designation
Form Of Item

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