1 / 6

Inequality, Fiscal Policy and Inclusive Growth in Asia

Inequality, Fiscal Policy and Inclusive Growth in Asia. Comments to the chapters 5 and 6 by Donghyn Park Oxana Sinyavskaya, Deputy Director of the Institute for Social Policy, HSE. Focus of the chapter:

rolf
Download Presentation

Inequality, Fiscal Policy and Inclusive Growth in Asia

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Inequality, Fiscal Policy and Inclusive Growth in Asia Comments to the chapters 5 and 6 by Donghyn Park Oxana Sinyavskaya, Deputy Director of the Institute for Social Policy, HSE

  2. Focus of the chapter: • 5: how improve tax administration in order to overcome the middle income trap and support inclusive growth in Asia? • 6: a broad range of measures of fiscal policy to promote both more equity and economic growth • How to achieve quality of economic growth (“how the region is growing”) / inclusive growth under the conditions of middle-income development and extreme and raising inequality? • Still need to grow faster than developed countries + keep fiscal sustainability + reduce inequality

  3. My feedback with relation to my experience in social policy and Russia • Russia: • The research of my colleagues (Popova et al) in the Institute for Social Policy confirms that Russian tax-benefit & social transfers system reduces poverty rate by half and inequality level by one third – not efficient by international standards • Almost all of redistribution in Russia – at the expense of pensions • Changes in tax and social policy of 2010-2017 contributed mostly to the middle income groups • Modelling of “tax maneure” of reducing social security contributions and increasing VAT – increase inequality and budget losses

  4. International trends in social policy • Population ageing AND technological revolution undermines the stability of 20th century welfare state model based on social insurance because the base for social security contributions is shrinking • New solutions – how to expand both base for financing social expenditures and social protection to everybody AND not to undermine economic growth •  Social investment state with particular focus on public education and health care

  5. The outcomes of higher public spending on health care and education • Reduction of inequality • Early investment in education – improve human capital of future generations and promote social mobility (Heckman and many other scholars) + better productivity • Higher investment in health care – longer lives • But and important issue – acknowledged in the chapter 6 – is improving quality of public education and health care services

  6. What can be important to our region • Improving tax administration as a source of improving tax revenues and decreasing informal employment – might be not so important in Russia and CIS as in Asia • But: • Fiscal reform instead of fiscal expansion! • More attention to public education and health care • And – the outcomes of corruption: • Business is not interested in spending more on social purposes • People do not believe in a lack of money and reject any reforms, a lack of trust

More Related