Helping Countries Strengthen Social Spending
IMF SEMINAR EVENT
DATE: October 16, 2019
DAY: Wednesday
11:30 AM - 12:30 PM
LOCATION: IMF HQ1, Meetings Halls A&B (HQ1-3-430 A&B)
Ali Aslan, International TV Presenter and Journalist, summarizes key points from the IMF seminar on
Social Spending.
Overview
Social spending is a key ingredient for fostering inclusive growth and stable societies. How can countries raise more resources for social spending and make the most of the scarce resources they have? And are there best practices when it comes to making sure that social spending is adequate, efficient and financially sustainable?Join the conversation via #SocialSpending
Helping Countries Strengthen Social Spending
Social spending is a key ingredient for fostering inclusive growth and stable societies. The panel discussed how countries can raise more resources for social spending and best practices to ensure that social spending is adequate, efficient, and financially sustainable.
Key Points:
- Financing social spending. Panelists agreed on the importance of progressive tax systems in providing adequate resources for social spending. Byanyima, Goldin, Swan noted the need to address the race to the bottom of taxation, one of the failings of globalization. Greenfield stressed the role of the private sector in supplementing financing for social spending, while Byanyima cautioned that private solutions often hurt those on the margins of society.
- Success stories. Swan underscored that, in terms of best practice, equity in tax systems and expenditure is critical for ensuring buy-in for tax reform. Goldin highlighted Denmark and France as good examples of countries that have been able to successfully tax and redistribute income, positively impacting the lives of their citizens. Byanyima noted that Ethiopia, even with its limited resources, was successful at expanding education to all children.
- Role of key stakeholders. Byanyima urged the Fund to do more to safeguard social spending in times of austerity and to move away from advising countries to adopt consumption taxes. Greenfield highlighted the focus of the ILO on universal social protection and noted the need for the ILO to accelerate its programs. Goldin observed that academia, because of its long-term view, is well placed to look at the global experience and help countries take advantage of lessons learned in providing effective social spending.
Panelists
Opening Remarks: Tao Zhang
Mr. Tao ZHANG assumed the role of Deputy Managing Director at the IMF on August 22, 2016. He brings extensive international economic expertise and experience in policymaking, including with international financial institutions, from his previous appointments as the Deputy Governor of the People’s Bank of China and IMF’s Executive Director for China from 2011 to 2015.
Prior to his position as the Deputy Governor, Mr. Zhang held a number of high-level positions in the People’s Bank of China: Director-General of the Legal Affairs Department; Director-General of the International Department; and, Director-General of Financial Survey and Statistics Department. Mr. Zhang also worked at the World Bank from 1995 to 1997 and at the Asian Development Bank from 1997 to 2004.
Mr. Zhang holds an M.A. and Ph.D. in International Economics from the University of California, Santa Cruz, as well as a B.S. in Electrical Engineering and an M.S. in Finance from Tsinghua University in Beijing.