Comment on paper on ‘Fiscal Reform and Compensatory Mechanisms’, by Joaquim Bento de Souza Ferreira Filho; PEP-IDB Policy Forum on Trade and Poverty; Lima, Peru, June 11, 2007.

My comments are set against the recurrent theme of heterogeneity among developing economies. The particular aspect that concerns me is heterogeneity of size. …

The fall in total tax revenues following trade liberalization and the difficulty of recovering lost tax revenues with other sources in the domestic tax system, issues that are highlighted in Joaquim’s paper, have particular salience in the case of small and very small economies.

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