Appendix III. Summary of Tax Systems
- George Mackenzie, Philip Gerson, and David Orsmond
- Published Date:
- April 1997
This appendix presents in tabular form (Table 12) the eight countries at various stages of their adjust-some of the basic features of the tax systems of ment efforts.
|Country||End of Preadjustment Period||End of First Adjustment Period||End of Second Adjustment Period|
|Personal income tax rates|
|Bangladesh||60% top rate, plus surcharge of 4.5%-9%; lowest rate first applies at 2.2 and highest at 111.0 times GDP per capita (GDPPC)||50% top rate; lowest rate at 1.4 and highest at 53.2 times GDPPC||25% top rate; lowest rate at 6.3 and highest at 30.7 times GDPPC; minimum tax of Tk 1,200 or Tk 1,800, with higher amount for the self-assessed|
|Chile||60% top rate; lowest rate at 1 Taxpayer Unit (TU; a monetary unit indexed to the consumer price index) (roughly 3 times GDPPC) and highest at 80 TUs||58% top rate; lowest positive rate at 10 TUs and highest at 100 TUs||Top rate 50%; lowest positive rate at 10 TUs and highest at 100 TUs|
|Ghana||60% top rate; lowest rate at 0.1 and highest at 1.9 times GDPPC||55% top rate; lowest rate at 0.3 and highest at 4.6 times GDPPC||50% top rate; lowest rate at 0.4 and highest at 12.6 times GDPPC|
|India||50% top rate, plus surcharge of 3%; lowest rate at 2.7 and highest at 15.3 times GDPPC||50% top rate, plus 6% surcharge; lowest rate at 2.4 and highest at 10.9 times GDPPC|
|Mexico||55% top rate; lowest rate at 0.1 and highest at 29.3 times GDPPC||55% top rate; lowest rate at 0.1 and highest at 26.9 times GDPPC||35% top rate; lowest rate at 0.1 and highest at 7.3 times GDPPC; tax credit of 2.5% of tax due in higher brackets|
|Morocco||44% top rate, plus solidarity tax 4.4%, plus complementary tax at various rates of 1%-20%; highest rate at 47.0 times GDPPC||60% top rate, plus solidarity tax of up to 8.2%, plus complementary tax set at rate of 1%-18%; lowest rate at 1.0 and highest at 50.6 times GDPPC||48% top rate; lowest rate at 0.3 and highest at 6.3 times GDPPC; minimum turnover tax of 6% of gross income for some professionals and 0.5% for others|
|Senegal||75% top rate; lowest rate at 2.1 and highest at 103.6 times GDPPC||73% top rate; lowest rate at 1.5 and highest at 67.5 times GDPPC||64% top rate; lowest rate at 3.0 and highest at 63.2 times GDPPC|
|Thailand||65% top rate; lowest rate at 0.7 and highest at 73.4 times GDPPC||55% top rate; lowest rate at 0.6 and highest at 94.3 times GDPPC||37% top rate; lowest rate at 0.6 and highest at 76.1 times GDPPC|
|Personal income tax base, and key structural features|
|Bangladesh||Income from salary, interest, and dividends subject to withholding, with amount withheld from dividend income deductible from final tax obligations; dividend income up to Tk 5,000 (2 times GDPPC) subject to certain conditions is exempt; value of new or additional investments of up to the lesser of Tk 30,000 or 30% of the value of the new investment undertaken by the individual in designated industrial companies is deductible||Income from salary, interest, and dividends subject to withholding, with amount withheld from dividend income deductible from final tax obligations; bank interest up to Tk 15,000 and dividend income up to Tk 15,000 under certain circumstances are exempt (although taxed in the hands of the corporation making the distribution); new or additional investment of up to one-third of total income in designated industrial companies is deductible||Income from bank interest and dividends subject to withholding, with amount withheld for each of these deductible from final tax obligations; interest on government securities and dividend income up to Tk 30,000 are exempt (although taxed in the hands of the corporation making the distribution); new or additional investment of up to one-fifth of total income in designated industrial companies is deductible|
|Chile||Schedular element to tax system—schedular taxes at proportional rates on capital, labor, and professional income; tax on labor creditable against complementary income tax, IGC (a comprehensive income tax applying to all types of income, with exemptions essentially limited to personal and dependents’ deductions); separate tax on capital gains||Major changes: indexation of tax brackets to TU; elimination of separate tax on capital gains; replacement of proportional tax on labor income by progressive tax, creditable against IGC||Major changes: tax on professional income eliminated; schedular tax on capital income creditable against complementary income tax; additional exemptions from complementary tax for contributions to various investment and saving schemes, including 100% of voluntary contributions to the account of the taxpayer with the national defined-contributions pension scheme|
|Ghana||Taxable income includes income from virtually all sources, excluding that part of cash housing allowances that is below 20% of salary, rental income (which is separately assessed), income from cocoa, forestry and agricultural income for initial period of three to ten years, and interest on savings accounts; dividend income subject to final withholding at 15%||Basically unchanged from end of preadjustment period, except that dividend income now subject to tax, and, along with nonbank interest income subject to withholding at 30%, creditable against final tax liability||Basically unchanged from end of first period, except that dividends subject to a final withholding tax of 15%, and rental income no longer subject to a separate schedule|
|India||Income from all sources, excluding first Rs 10,000 (3 times GDPPC) of dividend income, an additional Rs 3,000 for dividend income from certain funds, and agricultural income (which is taxed at the state level); income tax obligations can be reduced by 20% of investments in certain forms of saving and equity instruments, with total deduction limited to Rs 10,000||Essentially unchanged from end of preadjustment period, though maximum deduction for investments raised to Rs 12,000|
|Mexico||Income from all sources, excluding interest paid by savings banks and from some government bonds; dividend income subject to withholding at 55%, creditable against final tax liability, and interest income from bearer bonds at a final rate of 21%||Essentially the same as at the end of the preadjustment period, except that interest paid by savings banks and from some government bonds is now also subject to final withholding at 21%||As at the end of the first adjustment period, except that dividend distributions are neither subject to withholding nor taxed under the personal income tax; however, individuals may include dividend income to claim a credit for the corporate tax that has already been paid on such income; the final withholding taxes levied on bank interest and interest from government securities were lowered to 0%-2%|
|Morocco||A schedular system, with wage income subject to separate withholding taxes (the income tax and the national solidarity tax); the complementary income tax applies to all forms of income; dividends, interest earnings, and rental income are not subject to separate schedular taxes, but included in complementary tax base; dividend and interest income withheld at 25%, which at the taxpayer’s option can be the final rate||Essentially unchanged from the end of the preadjustment period, except that agricultural income is exempt until the year 2000||Essentially unchanged from the end of the first period, except that dividend income now subject to 10%-30%; for both dividend and interest income the withholding tax at 15%, and interest income at withheld amount can be considered the final tax due or can be credited against personal income tax obligations|
|Senegal||A schedular system, with withholding taxes applying to wages and salaries, and dividends and nonbank interest (taxed at 8%-25%); a progressive tax with a top rate of 65% applies to all income||Essentially unchanged, except that dividends and nonbank interest taxed at 10%-25%, and the top rate of the comprehensive progressive income tax lowered to 60%||Essentially the same as at the end of the first period, except that dividends and nonbank interest now taxed at 8%—16%, with the top rate of the income tax lowered to 50%|
|Thailand||Income from all sources, except a part of dividend income varying from 25% to 35%; withholding tax on dividend income applies at the shareholder’s personal income tax rate||Essentially unchanged from the end of the preadjustment period, except that individuals can exclude dividend income from their taxable income and pay the withholding tax, or include it and take a deduction of 30% of its value; certain interest subject to withholding at 15%, which is the final tax rate unless the individual chooses to have such income included as taxable income, whereupon the tax withheld is creditable||Essentially the same as at the end of the first adjustment period, except dividend income now subject to withholding at 10%; individuals can exclude such income from their taxable income or include it and take a deduction of 42% of its value|
|Company income tax rates|
|Bangladesh||30% for income below Tk 150,000 (75 times GDPPC), all income of public companies, and all income earned abroad and remitted to Bangladesh; otherwise 55%||Publicly traded industries, 45%; nonpublicly traded industries, 50%; all others, 60%; rebate of 10% of tax due for some income remitted from abroad to Bangladesh||Essentially unchanged, except that rates reduced as follows: for publicly traded companies, to 37.5%; for nonpublicly traded, to 42.5%; all others—including financial institutions—to 50%|
|Chile||General rate, 35%; banks and insurance companies, 40%||Subject to schedular tax on capital income at 10%, plus the “additional” tax of 40%||Major revisions to rate structure: earnings of resident companies, 15%; earnings of nonresident companies, 35% (with credit for corporate income tax already paid)|
|Ghana||Basic rate, 55%; companies producing excisable goods, 50%; mining income, and farming income following initial five-year exemption period, 45%; Ghanaian-owned companies for first five years of operations—reduced rates, 35%—45%; minimum turnover tax of 5% after initial five years, which is waived for mining and farming||Essentially unchanged||New rates as follows: basic rate (including farming after the exemption period), 35%; mining companies, 45%; banking, insurance, commerce, printing, and petroleum companies, 50%|
|India||Widely held Indian companies, 50%; closely held trading investment companies, 60%; other Indian companies, 55%; foreign companies (depending on type of income), up to 65%; surcharge of 5% of tax due for income above Rs 50,000 (8 times GDPPC); agricultural income taxed only at the state level||Rate changes as follows: widely held Indian companies, 45%; all closely held companies, 50%; surcharge of 15% of tax due for income above Rs 75,000 (8 times GDPPC)|
|Mexico||5%—42% depending on profit level, with highest rate applicable for income above P 1,500,000 (11.2 times GDPPC)||11%—40%; new uniform base rate of 35% phased in from 1987 to 1991||34% for most companies; minimum profit tax of 2% of turnover after first two years of operation, credited against corporate income tax obligations|
|Morocco||40%—48% depending on profit level, plus solidarity tax of 4.0%-4.8%||Unchanged, except that forfeit (presumptive tax) based on turnover for small businesses introduced||General rate, 38% plus 3.8% solidarity tax; minimum turnover tax: standard rate, 0.5%; companies selling petroleum products, gas, butter, edible oils, flour, electricity, and water, 0.25%; minimum turnover tax creditable against corporate income tax obligations|
|Senegal||General rate (for industrial and commercial enterprises), 33⅓%;for unincorporated enterprises, 16%-28%; fixed-rate minimum tax of CFAF 400,000 for corporations, depending on size of turnover, which is creditable against corporate income tax obligations (income earned in the first two years of operations exempt)||Revised rates: unincorporated enterprises, 28%; fixed-rate minimum tax of CFAF 0.5-1 million||Revised rates: general rate, 35%; unincorporated enterprise income, 35%|
|Thailand||Public companies, 35%; nonpublic companies, 45%; petroleum companies, 50%||Revised rates: public companies, 30%; nonpublic companies, 35%||Revised rate: nonpublic companies, 30% (same as public)|
|Corporate income tax base, depreciation, and other key features|
|Bangladesh||All dividend income of companies taxed as ordinary corporate income at a rate of 30%, including that received from companies that enjoy tax holidays; depreciation rules quite liberal; operating losses from business activities can be carried forward for six years, and unutilized depreciation allowances for an indefinite period||Basically unchanged, except that all dividend income of companies now taxed at a final rate of 15%||Basically unchanged, except that dividend income received from tax-exempt companies is no longer taxable under certain conditions|
|Chile||Partial adjustment for inflation; straight-line depreciation||Major change: full indexation of balance sheet||Essentially unchanged|
|Ghana||Taxable income excludes dividends received from other companies; depreciation allowances vary—10%-20% for first year and 3%-15% a year thereafter depending on type of asset; losses not carried forward or backward, except for oil and farming enterprises; unutilized depreciation allowances can be carried forward; exempt: income from cocoa farming, income from farming for first five years of operation, income from some public enterprises||Essentially unchanged||Essentially unchanged|
|India||Net intercompany dividend payments are excluded from the tax base of the receiving company, provided that the dividend income received is in turn distributed by the receiving company (otherwise, dividend income is taxable for the receiving company); rates for depreciation vary at 5%-100%, depending on type of asset and business; losses can be carried forward for eight years under certain conditions (unutilized depreciation carried forward indefinitely)||Essentially unchanged|
|Mexico||Dividend income received is subject to the corporate income tax but is deductible if then paid to another company (there is no withholding tax for dividends paid to another company); depreciation on straight-line basis varying at 5%-20%, depending on type of asset; losses may be carried back for one year or forward for four years||Interest income, the tax basis and cost of sales, and depreciation are inflation adjusted; provisions for treatment of dividends, basis of calculation of depreciation, and treatment of losses essentially unchanged||Essentially unchanged, except that dividend income paid out from past or current after-tax profit is neither subject to withholding nor taxed under the personal income tax; fixed assets are depreciated on a straight-line basis at 5%-25%, and at 50% for pollution-control equipment (for machinery and equipment, the entire present value can be taken in the first year); losses may be carried forward for five years, or up to ten years in certain circumstances|
|Morocco||Dividends included in the tax base; 85% deduction allowed on dividend income received from a corporation in which there is a 30% or more ownership by the receiving corporation; depreciation on straight-line basis; losses may be carried forward for five years (unutilized depreciation allowances may be carried forward indefinitely)||No major changes, except that dividend income from a company listed on the stock exchange and certain other entities is exempt; 5%-8% of taxable profit must by law be appropriated into approved investment vehicles, including purchase of government bonds; agricultural profits exempt until year 2000||No major changes, except that agricultural profits to be taxed at 18% after 2000, but cattle-raising companies exempt|
|Senegal||Depreciation usually straight-line at 3%-33%; losses may be carried forward for three years (unutilized depreciation allowances may be carried forward indefinitely)||Essentially unchanged||Essentially unchanged|
|Thailand||Intercompany dividend income received may be excluded from income tax base subject to a maximum of 15% of total company income; dividend income is subject to withholding; depreciation can be either straight-line 5%-100% or accelerated; losses can be carried forward for five years||Essentially unchanged; dividend income withholding rate 20%||Essentially unchanged; dividend income withholding rate 10%|
|Corporate income tax holidays|
|Bangladesh||Tax holidays may be granted for periods of five to nine years; special depreciation rules apply for new industrial undertakings (80%-100% write-off for property over the first two years), for companies with double or triple shifts (additional 50%-100% of normal depreciation deduction), and for ships other than those used for inland waterways (100% write-off over three years); special income tax rules and provisions for some agricultural earnings, for oil, gas, and mining companies, and for insurance and cooperative societies; some profits from the export of local goods, except for tea and jute, are tax exempt||Essentially unchanged, except that special rules for cooperatives no longer apply||Essentially unchanged, except that tax holidays for industrial, tourism, and export zones may be granted for periods of 5 to 12 years; an additional investment allowance applies for new industrial machinery; and special rules no longer apply to insurance companies|
|Chile||Numerous regional and sectoral incentives||Limited incentive schemes||No major change|
|Ghana||Various tax holidays may be granted, including holidays from income tax for up to five years (ten years for agricultural enterprises); exemption from customs duties on machinery imports; rebate of 30%-40% of corporate income tax and 30%-40% of customs duties for new plant and equipment for nonmetropolitan industries; manufacturing industries not including woodworking and metal processing entitled to 25%-50% income tax rebate if they export 5%-25% of production; additional 5%-10% allowance for depreciation for qualifying new plant and equipment used in an industrial establishment||Essentially unchanged, except that 30%-40% rebate of customs duties dropped||Essentially unchanged, except that rebates for manufacturing exporters range from 30% to 75%|
|India||Tax holiday from income tax for five years for new industrial undertakings within Free Trade Zones and for firms producing exports; limited income tax deductions for up to ten years for newly established manufacturing, hotel, and shipbuilding enterprises; most businesses may deduct up to 20% of profits if the money is used for plant and equipment or deposited with the Development Bank||Essentially unchanged, except that 20% profit deduction limited to tea producers|
|Mexico||Accelerated depreciation on certain assets in any one of the first five years for firms located in priority zones; selective policy to promote new industrial activity in priority areas and employment generation, based on size, nature, and location of industrial activity (affects tourism, border areas, automobiles, non-oil exports); income tax rebates for publishers (50% of tax due) and agricultural, cattle, fishing, and forestry industries (25%-40% of tax due)||Essentially unchanged||Major changes as follows: selective promotion of new industrial activity limited to businesses along U.S. border and exporters (reduced benefits apply); accelerated depreciation provisions abolished|
|Morocco||Preferences for exporting and other designated firms include ten-year income tax holiday; other preferences can include preferential interest rates and depreciation profiles for real estate, housing, agriculture, and exports; some preferences are geographically based||Essentially unchanged||Changes as follows: income tax holiday for some exporting and other designated firms reduced to five years; for exporting firms a 50% tax rebate is given for following five years; exemption from import duties introduced|
|Senegal||Consumer cooperatives, mutual farm credit banks, and agricultural agencies exempt from income tax, while construction, printing, airlines, and maritime shipping exempt from minimum tax; temporary exemptions from income tax also available for new factories and for mining companies for five years; complete exemption from taxes and duties for companies in industrial free zone of Dakar; accelerated depreciation at twice normal first year rates for new machinery in manufacturing, transport, and farming; exemptions from import taxes and turnover tax for period of five to eight years for job-creating investment in manufacturing, agriculture, tourism, mining exploration, transport, telecommunications, and energy production||Essentially unchanged, except that: construction no longer exempt from minimum tax; tax credit of 50% of profit taxes for retained funds that are used for construction for industrial, tourism, and housing purposes for a period of up to eight years; narrowing of applicability of exemptions from import taxes and turnover tax (exemptions now related to location, size, use of technology, and use of local resources of firms investing in manufacturing, agriculture, tourism; maximum exemption period increased to 12 years)||Essentially unchanged|
|Thailand||Approved enterprises may be exempted from import and sales taxes on capital equipment, and for three to eight years on income taxes under the Investment Promotion Act||Essentially unchanged||Change in emphasis of incentive schemes from promotion of exports to regional development (encouraging location of industries outside Bangkok area); amount and type (by tax) of tax exemption varies, but can reach 100%; the period of exemption can reach eight years, depending on the region and type of export|
|Domestic taxes on goods and services|
|Bangladesh||Sales tax applying to certain specified domestically produced and imported manufactured items; rates imposed at 20% on some imported goods and domestically produced manufactured goods, 10% on industrial chemicals, processed food and furniture, and certain other goods if produced domestically||Essentially unchanged except that rate of 20% applies only to imports of manufactured goods||VAT introduced in 1991 and applied at the importer-manufacturer stage at a single rate of 15% (small firms, including those in the wholesale and retail sectors, pay a turnover tax of 2% unless they register for the VAT); exempt: cottage industries, textiles, foodstuffs, transport, insecticides, jute cuttings, oilseeds, some chemicals and drugs, fertilizers, basic plastics, some metal products; exports zero-rated|
|Chile||Cascading sales tax; exemptions: automobiles and certain other products (no provision for relief of tax embodied in inputs of taxed manufacturers); rates: 1%-70% (1969; most revenue from 8% rate)||VAT introduced in 1975 with general rate of 20%; initial exemptions for certain basic goods, reading materials, and special rates eliminated by 1980; exports zero-rated||Changes as follows: general rate, 18%; luxury rates, 30%-50%; alcohol, 13%-70%|
|Ghana||Single-stage sales tax on specified locally produced manufactured goods; rates: most goods not subject to an excise, 11.5%; goods subject to excises, 7.5%; salt, cigarettes, textiles, and certain building materials, 5%; imports, up to 30% (some specific); services tax on selected services: 25% for entertainment, 10% for hotels and restaurants; exempt: food, motor vehicles (which are subject to a special vehicle tax), education material, machinery and equipment for use in agriculture, manufacturing, and mining, petroleum products, one-band radio sets, and exports||Essentially unchanged, except that rate on most goods not subject to excise now 10%||Some changes in rate structure: general rate applying to both imports and domestically produced consumer goods of 17.5%; reduced rate of 7.5% for concession goods; 35%-100% for luxuries; all rates now ad valorem; some goods taxed at different rates|
|India||Modified VAT (Modvat) introduced in 1986/87: central excise duties on commodities used in the manufacture of 86 categories of goods are rebated if manufacturer subject to tax; textiles, petroleum, capital goods, and most services are not covered by the Modvat; sales taxes levied by the states are imposed on inter- and intrastate trade||Basically unchanged, except for addition of capital goods and petroleum to the list of taxable goods|
|Mexico||VAT introduced in January 1980: general rate, 15%; some beverages, medicines, and production in the border and free-trade zones, 6%; luxury rate (for items such as caviar, some color televisions, motorcycles, golf equipment), 20%; zero-rated: exports, foodstuffs, some beverages, tractors; exempt: credit instruments, residential construction, banking services, education, newsprint||No major changes: reduced rate of 6% now applies to nonbasic processed foods and not to beverages; 20% applies to some services as well as luxury items; medical services added to exempt list||Major change: general rate 10%|
|Morocco||Turnover tax levied at production stage on manufactured goods at 4.2%-15%, and on services at 12%; many exemptions; rates can differ between imported and domestic goods||VAT introduced in 1986: general rate, 19%; transport, petroleum products, edible oils, tea and coffee, 7%; tourism services and banks, 12%; construction, 14%; luxury goods, 30%; exempt: agriculture and retail sector, small wholesalers and producers, basic foodstuffs and consumption goods such as bread, sugar, publications, and others; zero-rated: exports, unprocessed foodstuffs, and agricultural inputs; same rates for imports, but the list of exempted products can differ||Changes as follows: rate of 7% now applies to water, electricity, interest, financial services, and services of lawyers and doctors and no longer to tea and coffee; transport, tourism, bank services now taxed at 14%; the list of exempt basic foodstuffs expanded to include meat and fish; unprocessed foodstuffs no longer zero-rated; same rates for imports and domestic goods|
|Senegal||VAT applied at four rates on manufacturing, crafts, other productive activities: general rate, 20%; fuel oil, essential foodstuffs, various raw materials, 7%; other petroleum products, 34%; luxuries, 50%; services taxed at 7%-50%; exempt: agricultural production, wholesale and retail sectors, exports, activities of public entities, certain imports including crude oil||Essentially unchanged||Major change: elimination of the tax on services, except for a 15% tax on telecommunications|
|Thailand||Business tax on gross receipts of 12 categories of businesses, including importers; rates vary from 1.5% to 40%; certain other categories of businesses pay rates of between 0.5% and 10.5%; retailers generally exempt||Essentially unchanged||VAT introduced in 1992: single rate of 7%; exports zero-rated; turnover tax of 1.5% for small businesses and 2.5%—3% on “turnover” for financial services; exempt: agricultural products and inputs, education, domestic transport, newsprint, medical services|
|Bangladesh||Applied to a fairly large number of items—including jute, advertisements, electricity—in addition to traditional excisable products||Basic structure unchanged||Supplemental VAT applied at the producer level to the value added of 161 goods at 5%-350% (5% hotels, crude palm oil; 350% foreign cigarettes); additional specific rates on handmade cigarettes, textiles, and bank services; since no input credit allowed, the supplementary VAT operates essentially as an excise tax|
|Chile||Excises on traditional excisable products—tobacco and alcoholic beverages, petroleum—and a few others||Basic structure unchanged||Basic structure unchanged|
|Ghana||Imposed on tobacco, alcohol, soap, and salt (at specific rates); on textiles, cosmetics, furniture, footwear, mineral water at ad valorem rates of 20%-60%;and on domestic cocoa sales at 100%||Basic structure unchanged, but maximum ad valorem rate for goods other than cocoa raised to 100%||Coverage of tax restricted to traditional excisable items—now including petroleum products—and cocoa sales|
|India||280 excises, with many specific rates; taxable goods include petroleum, tobacco, textiles, luxuries; maximum rate of 105%||Basic structure unchanged; maximum ad valorem rate lowered to 70%|
|Mexico||In addition to traditional excisable goods (tobacco at 21%-140%, gasoline at 110%, alcohol at 15%-50%, petrochemical products at 13%-18%); a fairly large number of goods, including sugar, electricity, telephones, cement, cotton, chocolate, nonalcoholic beverages taxed at specific and ad valorem rates||Some nontraditional products dropped from the list; revised rates as follows: tobacco, 25%—180%; alcohol, 19%-50%; sugar, telephones, 32%-72%; nonalcoholic beverages, 16%-40%||Many excises abolished; revised rates as follows: alcohol, 21%-44%; tobacco, 21%-140%|
|Morocco||Numerous goods taxed, generally specific rates on alcohol, luxuries, petroleum, sugar; ad valorem rate on tobacco||Basic structure unchanged||Basic structure unchanged|
|Senegal||Moderately large number of goods subject to tax, including tobacco products, alcoholic beverages, edible oils, soft drinks, kola seeds, tea, and coffee, which are taxed at specific rates||Conversion of rate structure to 13 ad valorem rates; 150% for kola seeds; 36%-50% for alcohol; 27% tobacco; 2.5%-45% for beverages; 2.5% for cement||Basic structure unchanged|
|Thailand||Ad valorem excises imposed on beverages (20%-40%), tobacco (45%), cement and petroleum products (5%-41%); excises on certain other products are levied at specific rates||Revised rates as follows: beverages, 35%—50%; tobacco, 35%-48%; petroleum products, 5%-36%; cement taxed at 9%||Automobiles subject to tax at 32.5%—38%; revised rates as follows: beverages, 20%-48%; tobacco, up to 60%; petroleum products, l%-36%; other luxuries, 2%-l4%|
|Bangladesh||Three export taxes—on tea, hides, and raw jute||Raw jute no longer taxed||Only export tax is a specific tax on fish|
|Ghana||Four export taxes—rates at 5%-l00% for lumber, logs, gold, and cocoa||Three export taxes—6%-100% for timber, gold, and cocoa||One export tax: 100% for cocoa receipts less producers’ and marketing costs|
|India||No export taxes as such; 439 export controls||Fewer than 200 export controls, mainly on agricultural products|
|Mexico||164 export taxes, mainly on agricultural products and petroleum; 55 commodity exports prohibited||62 taxed, mainly agricultural products and petroleum; and 39 prohibited||Most taxes and prohibitions eliminated; remaining apply mainly to agricultural products|
|Morocco||Several; phosphates and other minerals||Basic structure unchanged||Basic structure unchanged|
|Senegal||One export tax, on phosphates at 2.5%—5%||Basic structure unchanged||Basic structure unchanged|
|Thailand||Six export taxes; specific duties on hides and raw silk; ad valorem on rubber, rice, metal scraps, wood||Duties on rice and metal scraps eliminated||Duty on rubber eliminated|
|Bangladesh||Many rates; rates up to 125% on raw materials and semifinished goods, and up to 300% on finished goods; system of import licenses; many ad hoc exemptions||Basic structure unchanged||Substantial reduction in range of rates: 7.5% for basic inputs, 15% for raw materials, 30% for semifinished goods, 45% for consumption goods, and 60% for selected goods; concessional rates apply to spare parts, electrical equipment, agricultural inputs, and medicines|
|Chile||Numerous rates, 0%-220% plus; many goods subject to highest rates; widespread use of quantitative restrictions, simple average import duty at 94%||Major changes: uniform import tariff of 10%, except for motor vehicles and parts; quantitative restrictions eliminated; a few temporary tariffs on cars varying from 4% to 15% for 30 products||General rate of 15%, with 9% on imports to free zone, and 5% on boat engines and work tools for small fisheries; surcharge of 5%-15%; exempt: tax on imported capital can be deferred up to seven years|
|Ghana||Three ad valorem rates at 0%, 25%, and 30%; specific rates for food, live animals, beverages, tobacco, and textiles; use of quantitative restrictions; exempt: machinery, commercial vehicles, tractors, building material, some basic foodstuffs, and medicines||Changes: specific rates only on alcohol and tobacco; quantitative restrictions substantially liberalized; exemptions limited to agricultural machinery, tractors, crude oil, and medicines||Changes: four rates at 0%, 10%, 20%, and 25%; special tax of 10%-40% on textiles, beverages, and tobacco; some duties specific|
|India||Most imports subject to licensing; imports of consumer goods generally prohibited; wide dispersion of rates with maximum rate of 400%; ad hoc exemptions and reductions in rates||Liberalized; maximum tariff rate 100%; import licensing affects one-third of tariff lines; continued ad hoc exemptions and reductions in rates|
|Mexico||Virtually all imports subject to licensing; rates up to 100%, though 90% of tariff lines have a duty rate less than 50%; certain primary and semiprocessed products and farm inputs enter duty-free||Relatively few imports subject to licensing; standardization of rates into seven bands ranging from 0%-40%||Further standardization of rates into three bands at 0%-20%|
|Morocco||Top rate of 400% (zero on imports of petroleum); restrictions apply to around two-thirds of imports; additional stamp duty tax of 10%; additional special import tax rate of 15% with many exemptions||Major changes: top rate reduced to 45%; additional special import tax rate reduced to 5%; quantitative restrictions replaced with tariffs||Major changes: top rate reduced to 40% (for certain agricultural products); additional 10% for capital goods imported by enterprises benefiting from investment codes; 12.5% for medicines; 15% for other imports|
|Senegal||Standard rate of 45%; special rate of 15% for countries with most-favored-nation treatment; special rate of 5% for trade with ECOWAS countries; additional fiscal duties at 10% (raw materials, capital goods), 40% (semifinished and noncompeting finished products), 50% (luxury products), and 75% (competing finished products); plus specific stamp duties; quantitative restrictions used; exempt: large number of products exempt from import taxes; essential foodstuffs, medicines, boats, and airplanes exempt from fiscal duty||Rate changes as follows: semifinished goods, 30%; luxury products, 35%; competing finished products, 65%; quantitative restrictions virtually abolished||Rate changes as follows: semifinished goods, 20%; luxury products, 30%; competing finished products, 50%; additional customs stamp duty of 3%|
|Thailand||Both specific and ad valorem rates; majority of goods assessed at rates from 10% to 80%; some goods subject to licensing; surcharges of 10%-30% imposed on 25 products||Basically unchanged||Seven rates: raw materials at 1%, primary goods and machinery at 5%, intermediate at 10%, finished goods at 20%, highly protected goods at 30%, motor vehicles at 42%-68.5%; exempt: lower rates for ASEAN Regional Trade Liberalization Area (around 1% of import value subject to nontariff barriers in agricultural and industrial sectors; additional surcharges can be imposed); also exempt: special policy goods, crude oil, fish, fertilizers, exports|
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Article I of the IMF’s Articles of Agreement, which outlines the purposes by which “the Fund shall be guided in all its policies and decisions,” speaks of “the promotion and maintenance of high levels of employment and real income” (Article I, Section (ii)).
For example, it does not hazard statements such as “The change in the composition of social expenditures, improvements in public expenditure management, and reforms to the structure of the tax system and its administration in Chile added x percent to the annual rate of growth of real GDP in 1987-92.” There simply is no existing model that would allow such inferences to be made. Although much valuable quantitative work has been done on the relationship between fiscal policy and growth, that work has stressed the macroeconomic dimension of fiscal policy, as in the impact of deficit financing on growth. When this analysis has considered the impact of particular components of fiscal policy, it has concentrated on a comparatively small number of expenditure categories. Changes in public expenditure management and tax administration, and in the complexities of tax and expenditure structure, are not modeled. These complexities and the likelihood of long lags between a change in policy and its impact on the economy are part of the reason why no general model has been developed.
Conditionality refers to the policies that the IMF expects a country to follow in order to avail itself of IMF credit.
This section’s discussion of the literature on the role of fiscal policy in promoting growth is drawn from Gerson (forthcoming).
Put simply, if the net present value of the income generated by a project exceeds the project’s cost, using as the rate of discount the minimum rate of return a society expects of capital investments, the investment is socially profitable.
Market failures stemming from the existence of imperfect capital markets and other sources can also justify the public provision of pensions. The effect on economic growth of public pension systems is a controversial matter. Theory suggests that pay-as-you-go schemes will depress saving and capital accumulation (Feldstein, 1974 and 1995). Empirical work gives some support, albeit not conclusive, for this view (Mackenzie and others, forthcoming).
Growth-enhancing policies are not necessarily welfare enhancing. A policy of maximizing the rate of investment may increase growth at the expense of unduly burdening current generations: the current saving rate can be too high.
International Monetary Fund (1995b) discusses some of the issues covered in this and the following subsections.
There is an important parallel between expenditure on research and development and expenditure for on-the-job training, in that in neither case do the benefits of the expenditure accrue entirely to the enterprise that undertakes it. However, the return to research and development expenditure is typically highly uncertain, and the cost of the initial investment very high. Much of the benefit from research and development expenditure appears to be enjoyed not simply by other domestic firms, but by firms in other countries (Coe and Helpman, 1995). Thus, spending on research and development is not an attractive proposition for developing countries facing a severe public sector budget constraint.
It is more difficult to borrow for primary and secondary education because of the longer period to maturity and greater riskiness of the loan. Even loans to tertiary level students in the United States under the Federal Student Loan program had a default rate of about 15 percent in 1994 (United States, 1995).
The end of highly subsidized treatments for tuberculosis in China in the early 1980s is believed to have been the main factor behind a resurgence of the disease in the subsequent decade (World Bank, 1993a).
These institutions are in any event essential for an organized, civil society.
As one example, Alesina and others (1992) found that in a sample of 113 countries in 1950–82, those countries that had a high propensity for governmental collapse grew more slowly than those that did not. They also found evidence that instability causes lower growth, rather than vice versa.
The provision of free or subsidized education to children from poor families may serve a similar function, in addition to its contribution to human capital formation.
Operating subsidies are often funneled through the banking system, so that they do not show up in the accounts of the central government. This is especially true of economies in transition. More generally, the use of the central bank and other public financial institutions as a conduit for budgetary policy can entail substantial inefficiencies. This subject and related issues are addressed in Mackenzie and Stella (1996).
These views are nicely encapsulated by the dictum “provide a social safety net for people, not firms.”
Although this subsection concentrates on taxes, nontax revenue is an important source of government revenue in some countries, especially property income (for example, transfers from public enterprises and the central bank). Further, certain fees and charges can serve an important allocative role—for example, toll charges for busy roads and bridges.
There is an exception: some taxes can alleviate resource misallocation by increasing the effective price of goods whose market price does not reflect fully the social costs associated with their production or consumption. Such goods would include petroleum and tobacco products. However, taxes on these products would not by themselves raise enough revenue to finance even a minimal level of public expenditure.
Tax policy can also be the servant of redistribution; for this, the personal income tax is normally the instrument of choice.
It is largely for this reason that investment incentives can entail a substantial loss in tax revenues without appreciably stimulating investment.
Marginal effective rates of tax effectively adjust the statutory rate of tax on enterprises to take account of the impact on after-tax profitability of other aspects of the tax code, such as accelerated depreciation and loss carryovers (Chua, 1995).
The theoretical literature supports the view that multiple rates may be optimal. In practice, however, it is not possible to estimate how rates should differ. Perhaps more important, multiple rates greatly increase administrative and compliance problems.
For example, in New Zealand, chief executives of government departments are appointed for five years on a performance-based contract. They are free of almost all controls over budget inputs and thus enjoy the right to buy and sell their assets, to hire and fire, and to set salaries. The Auditor-General checks whether the services agreed were delivered, and the departments’ efficiency and effectiveness are regularly compared against other departments and the private sector (New Zealand, 1993).
Unsustainable measures may not have to be replaced if the initial target for the deficit is below its long-run target; they can be phased out. See Alesina and Perotti (1996) and McDermott and Wescott (1996) for empirical applications of this aspect of sustainability to OECD countries.
There is a link between low growth and macroeconomic instability; see Goldsbrough and others (1996).
One possible exception to this rule is a reduction in the investment budget. As noted earlier, however, cutbacks in investment may not have much impact on growth if cuts fall on projects with a low rate of return. In any case, the cuts may be easier to sustain politically than cuts in unproductive current expenditure—such as ill-targeted commodity subsidies—that have powerful political constituencies.
These periods are similar to those used in Goldsbrough and others (1996). In Chile’s case the preadjustment period begins in 1972 and the second adjustment period ends in 1989. Some structural reform did take place in the years that followed, which is covered by the study. In Ghana, expenditure increased rapidly in 1992, which contributed to a marked increase in the primary deficit after the end of the second adjustment period. Since then, expenditure has been contained, and revenue has been relatively buoyant, so that the primary deficit has shrunk. India has had only one adjustment period, starting from 1991. Finally, Thailand undertook an adjustment effort during 1981-86 with IMF assistance; during 1987-93 there was no IMF-supported program, but several important fiscal policy changes were introduced, and the period is characterized here as a second adjustment phase.
Focusing on central government, rather than on general government or the nonfinancial public sector, has the advantage that taxing, spending, and financing decisions at this level are basically under the control of the central government. In any case, general government and public sector data are not available in sufficient detail over an extended period for most of the eight countries. Fortunately, local government is a small share of total general government expenditure in the countries under consideration (with the exception of India), and hence focusing on fiscal adjustments at the central government level is not overly restrictive. The data reported for education and health expenditure in India, however, are for general government, since the state governments account for the lion’s share of this type of expenditure. In Mexico’s case, oil royalties have been included with taxes paid by Pemex, the state oil company, instead of being included in nontax revenues. Expenditures in the early 1980s reflect the costs incurred by the government in winding up the Mexdollar scheme. It should also be noted that discussions of Mexican fiscal policy generally rely on a broader measure of public sector operations than the federal government.
In Ghana, a vastly overvalued exchange rate also lowered the yield from taxes on tradable goods. In India, dependence on trade and excise taxes was encouraged by the constitutional provisions that exempt trade tax revenue from the revenue-sharing arrangements between the center and the states and give jurisdiction over sales taxes to the states.
In Chile, Ghana, Morocco, and Thailand the decline was greater in the second period than in the first.
The exception was Ghana, which started with the lowest expenditure and revenue shares, and where both expenditure and revenue increased.
In Chile, the expenditure and revenue shares of GDP experienced a very pronounced decline during the second adjustment phase. In the other countries, revenue increased on average by 1.8 percent of GDP, while expenditure remained fairly flat. Revenue is, however, more sensitive to external factors than domestic expenditure, and the revenue trends during the second adjustment period as well as the first may have at least partly reflected favorable developments in the terms of trade rather than discretionary policy measures.
Appendix I is organized on a “topical” basis, in order to facilitate comparison of the different elements of expenditure and tax policy and administration across the eight countries.
One exception to this generalization for some countries was the imposition of a tax or an increase in the rates of existing taxes on basic excisable goods such as petroleum; this path was followed in Morocco and Ghana, but not until several years into the adjustment efforts. Another option for base broadening was the elimination of corporate tax incentive schemes. This measure would not raise significant revenue, at least in the short term, since such measures would have been difficult to apply retroactively.
Labor costs were reduced to the extent that participants in the new regime saw their contribution—which replaced a payroll tax—as a form of saving, albeit involuntary, rather than as a tax that was unrelated to the future value of the pension. Capital markets were stimulated by the need of the pension funds for domestic financial instruments in which to invest contributions (for a general assessment of the reform, see Diamond and Valdés-Prieto, 1994; for capital market issues, see Holzmann, 1996).
There were, however, some complaints that participants in the program were stigmatized by regular employers (Graham, 1994).
Modvat is a modified version of the VAT, based on the excise tax system. Only excisable goods are in the tax net.
Much of the tax base would depend on imported goods, whose relative price was reduced with the overvaluation of the CFA franc.
One significant difference is the lesser importance of general sales taxation in Thailand, a reflection of the comparatively low general rate of its VAT.
This conclusion was also reached in the World Bank’s third report on adjustment lending (World Bank, 1992a).
This also makes it risky to assume that administrative reforms can quickly generate additional tax revenue or expenditure economies.
Some recent IMF-supported programs have included structural benchmarks for civil service numbers and the size of the wage bill.
The maximum deficit itself needs to be viewed intertemporally. For example, it may be possible to shift budget financing between periods, raising the maximum deficit in one period by lowering it in another. Assessment of the possibility of intertemporal “deficit smoothing” requires analysis of what level of deficit is sustainable over time.
Literacy levels were around 90 percent in Chile (in 1970) and Thailand (in 1980), compared with levels in 1980 of around 30 percent in Bangladesh, 50 percent in Ghana, 40 percent in India, 80 percent in Mexico, 40 percent in Morocco, and 30 percent in Senegal.
Data on education expenditure by level is available only for current, and not capital, expenditure. Statements about spending by scholastic level should accordingly be taken to refer to current expenditure.
In Thailand, the increase in central government education expenditure during the first adjustment period in part reflects the transfer of responsibilities for primary education from the local to the central government level. In Chile, the decrease in expenditure in the second period in part reflects the devolution of some education expenditure to the local government level.
Given the lack of alternatives, the ratios of population per nurse and per physician were taken as indicators of the emphasis on basic care, while the ratio of population per hospital bed was taken as an indication of the emphasis on more specialized care. The first two indicators are of course imperfect, since both doctors and nurses can be engaged in tertiary care.
Amieva-Huerta (1991). The social security system plays a big role in the provision of health care in Mexico (along with the Ministry of Health). In 1993, the various social security institutes covered about 55 percent of the total population. The private sector covers 37 percent of the effective demand for health care services. The uninsured population is the responsibility of the Ministry of Health.
In Senegal health care is also funded through nongovernmental sources.
It will take a further five years or so to restore Ghana’s infrastructure to that available in the early 1970s. See World Bank (1992b).
Feltenstein and Ha (1995) found evidence of significant complementarity of public expenditure on communication infrastructure with output in the manufacturing sector in Mexico but, interestingly, not for public expenditure on transportation.
To some extent, this reflected the devolution of education and other functions to the local government, financed by an increase in transfers. However, in all countries, the effective cost of hiring civil servants is often higher than the recorded wage bill because of in-kind payments such as free or subsidized housing.
For example, in India low salaries were increased by 100 percent of cost of living increases, but higher salaries by only 65 percent. In Morocco, real civil service wages declined by 13 percent between 1983-86, yet the lowest wages were increased in line with increases in the cost of living, so that all the adjustment fell on middle- and upper-level wages. In Senegal, real wages for the highest-paid civil servants declined by 40 percent between 1980-90, but wages for civil servants in the middle of the pay ranges declined by 12 percent.
Other factors, such as the power of public service unions, may also have played a role. A large share of defense expenditure is wages and salaries. Only in Bangladesh and Mexico did defense expenditure increase. The largest declines were in countries that started with the highest defense-to-GDP ratios. The direction of change was not always uniform; defense spending increased in Bangladesh, Chile, and Ghana in the first adjustment period, and then it decreased in the second. By the end of the adjustment period, defense expenditure was 2.2 percent of GDP or less in all countries, except India (2.5 percent), Morocco (4.4 percent), and Thailand (2.4 percent)—all countries that either have been involved in conflict or are adjacent to countries that have been involved in conflict. Note that the full amount of defense expenditure is sometimes obscured within other categories in the budget accounts, or omitted entirely (see Happe and Wakeman-Linn, 1994).
The figure of 20 percent includes “ghost” workers dropped from the payrolls. A special fund was established in 1987 to fund severance payments and grants for retraining and relocation of retrenched public employees. At 20 civil servants per 1,000 population, their number is still high relative to neighboring countries, which show figures of less than 10 per 1,000 population. See Leechor (1994) and Nunberg and Nellis (1995).
The tortilla (urban areas) and milk programs (rural and urban areas) relied on geographical targeting (shops were located in poor neighborhoods) and means testing. Mexico also eliminated some major implicit subsidies for the prices of petroleum products, which were hidden in the accounts of the state oil company.
In Chile, social programs were reoriented toward the poorest groups from the outset of the adjustment effort. By the end of its adjustment, half the benefits of these programs flowed to the poorest 30 percent of the population; see Graham (1994) and Meller (1992). For Morocco, see Morrisson (1991).
Background data for the material in this section are provided in Appendix III.
Direct tax receipts are defined here as total tax receipts less those from taxes on domestic production, domestic sales, and international trade. Almost all of this revenue would be accounted for by the personal and corporate income taxes.
A VAT was briefly introduced in March 1995, but was immediately withdrawn.
Under the Indian constitution, the central government does not have the power to tax either wholesale and retail trade or agriculture; the taxation of these bases is the prerogative of the state governments. In practice, administrative difficulties have prevented the states from raising substantial revenue from these bases. The Modvat and excise system has recently been revised, with a reduction in the number of bands, reduction in rates, and a shift to ad valorem and an invoice-based valuation system. In addition, the base of the Modvat has been extended to include petroleum products, textiles, and capital goods (World Bank, 1995b).
This disaggregated approach may have complicated expenditure control. Reductions in expenditure during the year were difficult to achieve, given the lack of flexibility of the public expenditure management system, with the consequence that the actual budget deficit was consistently higher than targeted. This deficiency was addressed by switching to the use of revenue estimates that, if anything, now consistently underestimate total revenue.
Senegal provides a good example of the problems engendered by this approach. The first department to spend its allocation was allocated expenditure from other areas without due consideration of priorities, which created an incentive for departments to spend their allocations quickly during the fiscal year. This practice also puts the department in a better position to claim a higher level of budget resources in the following year, since next year’s allocations will be based on actual expenditure in the current year.
If anything, the control system in Thailand was overly restrictive, with consequent delays in approving release of funds to spending ministries.
For example, housing allowances in Senegal are classified under materials and maintenance rather than as wages and salaries.
The experience of Ghana also indicates that early improvements in public expenditure management techniques may achieve little in an environment of financial instability. However, many basic features of the system remained in place and then served as a basis for a more durable reform after financial stabilization had taken hold.
The recent reductions in customs duties in India are an aspect behind the current review of revenue-sharing arrangements.
In Mexico, of some 1,155 public enterprises in 1982, over 900 had been divested by 1992.
Recent Occasional Papers of the International Monetary Fund
149. The Composition of Fiscal Adjustment and Growth: Lessons from Fiscal Reforms in Eight Economies, by G.A. Mackenzie, David W.H. Orsmond, and Philip R. Gerson. 1997.
148. Nigeria: Experience with Structural Adjustment, by Gary Moser, Scott Rogers, and Reinold van Til, with Robin Kibuka and Inutu Lukonga. 1997.
147. Aging Populations and Public Pension Schemes, by Sheetal K. Chand and Albert Jaeger, 1996.
146. Thailand: The Road to Sustained Growth, by Kalpana Kochhar, Louis Dicks-Mireaux, Balazs Horvath, Mauro Mecagni, Erik Offerdal, and Jianping Zhou. 1996.
145. Exchange Rate Movements and Their Impact on Trade and Investment in the APEC Region, by Takatoshi Ito, Peter Isard, Steven Symansky, and Tamim Bayoumi. 1996.
144. National Bank of Poland: The Road to Indirect Instruments, by Piero Ugolini. 1996.
143. Adjustment for Growth: The African Experience, by Michael T. Hadjimichael, Michael Nowak, Robert Sharer, and Amor Tahari. 1996.
142. Quasi-Fiscal Operations of Public Financial Institutions, by G.A. Mackenzie and Peter Stella. 1996.
141. Monetary and Exchange System Reforms in China: An Experiment in Gradualism, by Hassanali Mehran, Marc Quintyn, Tom Nordman, and Bernard Laurens. 1996.
140. Government Reform in New Zealand, by Graham C. Scott. 1996.
139. Reinvigorating Growth in Developing Countries: Lessons from Adjustment Policies in Eight Economies, by David Goldsbrough, Sharmini Coorey, Louis Dicks-Mireaux, Balazs Horvath, Kalpana Kochhar, Mauro Mecagni, Erik Offerdal, and Jianping Zhou. 1996.
138. Aftermath of the CFA Franc Devaluation, by Jean A.P. Clément, with Johannes Mueller, Stéphane Cossé, and Jean Le Dem. 1996.
137. The Lao People’s Democratic Republic: Systemic Transformation and Adjustment, edited by Ichiro Otani and Chi Do Pham. 1996.
136. Jordan: Strategy for Adjustment and Growth, edited by Edouard Maciejewski and Ahsan Mansur. 1996.
135. Vietnam: Transition to a Market Economy, by John R. Dodsworth, Erich Spitaller, Michael Braulke, Keon Hyok Lee, Kenneth Miranda, Christian Mulder, Hisanobu Shishido, and Krishna Srinivasan. 1996.
134. India: Economic Reform and Growth, by Ajai Chopra, Charles Collyns, Richard Hemming, and Karen Parker with Woosik Chu and Oliver Fratzscher. 1995.
133. Policy Experiences and Issues in the Baltics, Russia, and Other Countries of the Former Soviet Union, edited by Daniel A. Citrin and Ashok K. Lahiri. 1995.
132. Financial Fragilities in Latin America: The 1980s and 1990s, by Liliana Rojas-Suárez and Steven R. Weisbrod. 1995.
131. Capital Account Convertibility: Review of Experience and Implications for IMF Policies, by staff teams headed by Peter J. Quirk and Owen Evans. 1995.
130. Challenges to the Swedish Welfare State, by Desmond Lachman, Adam Bennett, John H. Green, Robert Hagemann, and Ramana Ramaswamy. 1995.
129. IMF Conditionality: Experience Under Stand-By and Extended Arrangements. Part II: Background Papers. Susan Schadler, Editor, with Adam Bennett, Maria Carkovic, Louis Dicks-Mireaux, Mauro Mecagni, James H.J. Morsink, and Miguel A. Savastano. 1995.
128. IMF Conditionality: Experience Under Stand-By and Extended Arrangements. Part I: Key Issues and Findings, by Susan Schadler, Adam Bennett, Maria Carkovic, Louis Dicks-Mireaux, Mauro Mecagni, James H.J. Morsink, and Miguel A. Savastano. 1995.
127. Road Maps of the Transition: The Baltics, the Czech Republic, Hungary, and Russia, by Biswajit Banerjee, Vincent Koen, Thomas Krueger, Mark S. Lutz, Michael Marrese, and Tapio O. Saavalainen. 1995.
126. The Adoption of Indirect Instruments of Monetary Policy, by a staff team headed by William E. Alexander, Tomás J.T. Baliño, and Charles Enoch. 1995.
125. United Germany: The First Five Years—Performance and Policy Issues, by Robert Corker, Robert A. Feldman, Karl Habermeier, Hari Vittas, and Tessa van der Willigen. 1995.
124. Saving Behavior and the Asset Price “Bubble” in Japan: Analytical Studies, edited by Ulrich Baumgartner and Guy Meredith. 1995.
123. Comprehensive Tax Reform: The Colombian Experience, edited by Parthasarathi Shome. 1995.
122. Capital Flows in the APEC Region, edited by Mohsin S. Khan and Carmen M. Reinhart. 1995.
121. Uganda: Adjustment with Growth, 1987-94, by Robert L. Sharer, Hema R. De Zoysa, and Calvin A. McDonald. 1995.
120. Economic Dislocation and Recovery in Lebanon, by Sena Eken, Paul Cashin, S. Nuri Erbas, Jose Martelino, and Adnan Mazarei. 1995.
119. Singapore: A Case Study in Rapid Development, edited by Kenneth Bercuson with a staff team comprising Robert G. Carling, Aasim M. Husain, Thomas Rumbaugh, and Rachel van Elkan. 1995.
118. Sub-Saharan Africa: Growth, Savings, and Investment, by Michael T. Hadjimichael, Dhaneshwar Ghura, Martin Mühleisen, Roger Nord, and E. Murat Uçer. 1995.
117. Resilience and Growth Through Sustained Adjustment: The Moroccan Experience, by Saleh M. Nsouli, Sena Eken, Klaus Enders, Van-Can Thai, Jörg Decressin, and Filippo Cartiglia, with Janet Bungay. 1995.
116. Improving the International Monetary System: Constraints and Possibilities, by Michael Mussa, Morris Goldstein, Peter B. Clark, Donald J. Mathieson, and Tamim Bayoumi. 1994.
115. Exchange Rates and Economic Fundamentals: A Framework for Analysis, by Peter B. Clark, Leonardo Bartolini, Tamim Bayoumi, and Steven Symansky. 1994.
114. Economic Reform in China: A New Phase, by Wanda Tseng, Hoe Ee Khor, Kalpana Kochhar, Dubravko Mihaljek, and David Burton. 1994.
113. Poland: The Path to a Market Economy, by Liam P. Ebrill, Ajai Chopra, Charalambos Christofides, Paul Mylonas, Inci Otker, and Gerd Schwartz. 1994.
112. The Behavior of Non-Oil Commodity Prices, by Eduardo Borensztein, Mohsin S. Khan, Carmen M. Reinhart, and Peter Wickham. 1994.
111. The Russian Federation in Transition: External Developments, by Benedicte Vibe Christensen. 1994.
110. Limiting Central Bank Credit to the Government: Theory and Practice, by Carlo Cottarelli. 1993.
109. The Path to Convertibility and Growth: The Tunisian Experience, by Saleh M. Nsouli, Sena Eken, Paul Duran, Gerwin Bell, and Zühtü Yücelik. 1993.
108. Recent Experiences with Surges in Capital Inflows, by Susan Schadler, Maria Carkovic, Adam Bennett, and Robert Kahn. 1993.
107. China at the Threshold of a Market Economy, by Michael W. Bell, Hoe Ee Khor, and Kalpana Kochhar with Jun Ma, Simon N’guiamba, and Rajiv Lall. 1993.
106. Economic Adjustment in Low-Income Countries: Experience Under the Enhanced Structural Adjustment Facility, by Susan Schadler, Franek Rozwadowski, Siddharth Tiwari, and David O. Robinson. 1993.
105. The Structure and Operation of the World Gold Market, by Gary O’Callaghan. 1993.
104. Price Liberalization in Russia: Behavior of Prices, Household Incomes, and Consumption During the First Year, by Vincent Koen and Steven Phillips. 1993.
103. Liberalization of the Capital Account: Experiences and Issues, by Donald J. Mathieson and Liliana Rojas-Suárez. 1993.
Note: For information on the title and availability of Occasional Papers not listed, please consult the IMF Publications Catalog or contact IMF Publication Services.