Documentos CIDOB América Latina; 27

The weakness of the fiscal systems in the central Andes region is one of the main obstacles to development. In the absence of a broader, more credible fiscal pact, the process of building States becomes seriously threatened. The de-legitimisation and inefficiency of political and economic institutions has weakened the implicit contract between State and citizens on which the fiscal system is based. This institutional weakness derives from the social and economic structure of the countries of the region, and has led to a vicious circle that is preventing effective reform of the tax system. Ethnic-linguistic fragmentation, social inequality and an economy that is highly dependent on natural resources have all reduced the trust of society and have led to private interests making use of public funds. The situation has resulted in a lax attitude toward taxation, as well as in dysfunctional, delegitimised institutions that are undermining the foundations of the fiscal pact. In light of the situation, the work presents some alternative actions for the purpose of broadening the scope of the fiscal systems, as well as for improving the efficiency of international cooperation in the area of taxation.

ISSN: 1697-7688 (print edition)
ISSN: 1697-8137 (online edition)

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