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Fiscal policy at the crossroads: the case of Central America, Executive Summary

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Central America is at the crossroad: There is a possibility of taking a leap that allows to get on track for a new path of economic growth with equity and well-being for the entire population, but this will require an effort to increase taxation and improve the efficiency of public spending with transparency. The first chapter of "Fiscal Policy at the Crossroads. The Case of Central America" identifies the progress and the pending tasks regarding budget and public expenditure in the region. The second chapter does the same, but regarding taxation, and the third chapter goes in a more tentative, but bold way, in the field of political economy of tax reforms.

This book does not offer recipes, but it is expected to contribute to a constructive reflection regarding a central issues of the development agenda of the Central American region: fiscal policy. The obstacles are many, but overcoming them can make the difference between a dignified life in conditions of well-being for millions of Central Americans or allow them to continue immersed in poverty.