What chances do aspiring developing countries have of catching up with developed market economies, and that with rising inflation and scarce energy resources? Questions like these will be discussed at a congress of the International Institute of Public Finance (IIPF) starting today, Wednesday. Around 340 financial experts from all over the world will be discussing and giving lectures on the subject at Linz’s Johannes Kepler University until Friday.
The fact that the meeting is taking place in the state capital is due to the Linz economist and professor emeritus Friedrich Schneider. Originally, the congress should have taken place in China in August. Because the organizers there had waved their hand because of the Corona situation and strict entry regulations and had requested a postponement by one year, Schneider jumped in as a member of the IIPF board and brought the congress to Linz.
According to the economist, traditional finance was primarily developed for highly developed market economies and their problems. “By contrast, 80 percent of the world’s population lives in countries with lower and middle incomes, and especially in an increasing globalization there is very little current research on how important public finance problems are to be dealt with and solved in these countries.”
Tax reforms and tariff reduction
The expert sees possible solutions in the reform of tax systems, tariff reduction and the reduction of greenhouse gas emissions. The question of how emerging countries should best deal with the pandemic and how wealthy countries should help will also be discussed in Linz. As reported, Schneider is currently supporting the government of the Caribbean island of Aruba in introducing VAT.
Source: Nachrichten
