The SDGs, Domestic Resource Mobilisation and the Poor

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By Nora Lustig, Samuel Z. Stone Professor of Latin American Economics, Director of the Commitment to Equity Institute at Tulane University, nonresident senior fellow of the Center for Global Development and the Inter-American Dialogue, and non-resident senior research fellow at UNU-WIDER 1


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E_SDG goals_icons-individual-rgb-01Countries around the world committed to the Sustainable Development Goals (SDGs).  However, achieving some of the SDGs could happen at the expense of the overarching goal of reducing poverty, at least in the short-run.2  One key factor to achieving the SDGs will be the availability of fiscal resources to deliver the floors in social protection, social services and infrastructure embedded in the SDGs. A significant portion of these resources is expected to come from taxes in developing countries themselves, complemented by transfers from the countries that are better off.3 In developing countries, however, raising additional taxes domestically for infrastructure, protecting the environment and social services may leave a significant portion of the poor with less cash to buy food and other essential goods.  Continue reading