“Little else is required to carry a state to the highest degree of opulence...but peace, easy taxes, and a tolerable administration of justice,”, Adam Smith
It is striking that he singled out taxation alongside peace and justice as the key to a successful society. This insight is now more important than ever, Christine Largarde, Revenue Mobilization and International Taxation: Key Ingredients of 21st-Century Economies
The IMF and supports clearly the public sector and taxation, the conduit that supports it, as the driver of the global economy. While this view remains in direct conflict with economic growth driven by investment directed by the invisible hand, it's paired with Adam Smith's concepts either through ignorance or misdirection.
So let us start with the first ingredient of successful 21st-century economies—revenue mobilization—which is on the minds of so many policymakers, especially in the Middle East and North Africa.
Higher government revenues would create much-needed fiscal room for maneuver and allow for more spending on all the things that drive potential growth over the medium term, including infrastructure, healthcare, and education. In addition, more reliable sources of revenue would help avoid volatility in public expenditure and pro-cyclical fiscal policy., Christine Lagarde
Ironically, the view of the public sector as the driver and master of the business cycle will be challenged as global economic activity, including the United States, continues its downward trend. The public, a growing majority of concerned voters, is not stupid. They clearly recognize 'Something Is Wrong'. That something obviously includes an inherent understanding that the public sector cannot control the business cycle any better than they can. This helps explain why Trump campaign, possibly the only candidate that a growing majority views as voice to this 'something' despite the ongoing freak show, continues to defy expectations.
Headline: Revenue Mobilization and International Taxation: Key Ingredients of 21st-Century Economies
As prepared for delivery
Good morning—Sabah Al-Khair
Ministers and Governors—thank you for honoring us with your presence. It is a great pleasure to speak before such a distinguished audience. Dear Minister Al-Tayer: Thank you for your generous hospitality and the gracious introduction, and thank you, Dr. Al-Hamidy, for joining hands with us to organize the Arab Fiscal Forum.
This event is taking place at a pivotal moment not only for this region but for many other countries that have seen fiscal issues rise to the top of their policy agendas.
Or, to be more precise, it is taxation that has risen to the agenda in many countries. If you wonder why this issue has become so important, let me assure you that this is nothing new in the history of mankind!
Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.