Regional targeting of the Russian economic policy: an institution for spatial planning of territories

This article aims at assessing the state of Russian economy amid lower energy prices and the “exchange of sanctions” and identifying the priorities for Russian economic policy as a universal institution capable to support the stability and systemic character of development. It proposes to use the optimization of inter-budgetary relations in Municipality—Region—Federal Center system in order to initiate the process of spatial development of Russian territories by involving the regional and municipal capabilities in the development processes. All Russian citizens are recommended to adopt a more rigorous and responsible attitude towards the Constitution as the Basic Law, which received support from people and defines strategic priorities for the long-term development of Russia. The article provides a rationale for the methodology of optimizing the inter-budgetary relations between the Federation, its subjects and municipalities through a science-based division of powers and responsibilities for the socio-economic outcomes at each level. It proposes to involve the experts and the public in the development of a national plan for socio-economic and social development, the main priorities of which should be the improvement in the quality and effectiveness of public administration and spatial development of Russian territories. The author makes the case for the mechanisms and institutions that can connect the regions and territories to the implementation of such national plan. The conclusions and recommendations proposed in this article can be used by the federal authorities when drafting and adopting the laws and other regulatory acts on the distribution of powers and optimization of the budgetary process. They can also be used by regional and municipal authorities when planning and designing the spatial development of their territories.This article has been prepared with the financial support provided by the Grant from the Russian Science Foundation No. 14–18–00456 “Substantiating the geo-, eco-, socio-economic approach to the development of strategic natural and resource capacity of northern little-studied territories within The Arctic—Central Asia investment project.

Have Recent Budget Policies Contributed to Long-Run Fiscal Stability?

Examines developments in budget policies since January 2010; the president's 2011 budget, including economic stimulus and tax and spending policies; congressional action; and issues for health reform. Considers their effect on long-term sustainability

The Political Economy of Productivity. The Case of Chile

This paper analyzes the political economy of productivity-related policymaking in Chile following a political transaction cost model (Spiller and Tommasi, 2003; Murillo et al., 2008). The main findings indicate that i) the Chilean policymaking process (PMP) was successful in the 1990s in implementing productivityenhancing policies, but as the country moved to a higher stage of development, the PMP grew less adept at generating the more complex set of policies needed to increase productivity at this stage; and ii) the Chilean PMP is less transparent than previously thought (Aninat et al., 2008), thus allowing political actors to favor private interests without being punished by the electorate. This has become apparent as the more sophisticated reforms needed at this stage of development require a deeper and more consolidated democracy.Economic policy, Institutional reforms, Productivity, Pensions, Education, Innovation, State modernization, Competitiveness, Chile

Trade Facilitation in Developing Countries

Measures to actively facilitate trade are increasingly seen as essential to assist developing countries in expanding trade and benefiting from globalisation. Although often viewed as narrowly concerned with the ease and speed of Customs procedures, even greater trade cost reductions and trade and welfare benefits may be reaped from a broader view of trade facilitation (TF) that incorporates transportation, distribution and communication issues. A number of TF reforms are particularly beneficial: improving procedures, especially Customs clearance; introducing automation and use of information technology; reducing excessive documentation requirements; addressing lack of transparency in import and export requirements; addressing lack of modernisation of and cooperation between Customs and other government agencies. The review identifies the types of TF reforms that could address these problems and deliver a return in terms of increased revenue collection efficiency, reductions in trade costs and promotion of greater regional cooperation (at least in Customs and transport, especially as many TF measures are appropriate for inclusion in regional integration agreements).Trade Facilitation, Regional Integration

IRS Reform: Politics As Usual?

The IRS is still reeling from accusations that it “targeted” Tea Party and other non-profit organizations. Although multiple government investigations found no politically motivated behavior—only mismanagement—Congressional hearings were quite inflammatory. Congress recently followed up those hearings with a set of IRS reforms. Congress’s approach is reminiscent of the late 1990s, when highly publicized Congressional hearings regarding alleged abuses by the IRS resulted in a major IRS reform and restructuring, although the allegations subsequently were largely debunked. This Article argues that the recent allegations against the IRS also were overblown. It looks to the aftermath of the 1998 IRS reform, which included a major downturn in enforcement, for lessons for the present day. The Article concludes that Congress as a whole can do a better job of keeping politics from undermining tax administration

Down a slippery slope:lack of trust, coercive threats and business tax resistance in Greece, 1955-1988

Over the second half of the 20th century, Greek governments failed to tax business income in line with the country’s level of economic development. This paper uses the “slippery slope” model of tax compliance to explain why the reform of income and corporate taxation in the late 1950s met strong resistance in the business sector. We argue that the negative legacy of interwar reforms, the lack of sustained and credible investment in trust building in coincidence with the postwar reforms, and the intensification of coercive threats in tax enforcement led to an antagonistic tax climate and a degradation of enforced and voluntary compliance. Our qualitative analysis based on original primary sources shows that the arguments publicly voiced by entrepreneurs and their organizations reflected their persistent perception of tax power as unfair, arbitrary and extractive. Using aggregate tax returns data, our quantitative analysis finds evidence of systematic and increasing income underreporting both by unincorporated and incorporated businesses. This vicious circle of non-cooperation and mutual distrust explains why governments got trapped into a persistent low tax capacity equilibrium that still casts a shadow on the Greek economy

Tax administration reform in transition: the case of Croatia

This Occasional Paper reports the research results of a project on the tax administration in Croatia conducted by the Institute of Public Finance in Zagreb for the Croatian Tax Administration. The project team report was finalised in summer 1997 and it includes ten papers which are published in Croatian in the Institute’s journal “Financijska praksa”, Volume 22 , Number 1-2 (April 1998). This paper is the summary of the project written by Katarina Ott (Institute of Public Finance)