Fiscal Policy and Social Optimization for Developing Nations: Some Thoughts in the Digital Era

Fiscal Policy and Social Optimization for Developing Nations: Some Thoughts in the Digital Era

Jose Manuel Saiz-Alvarez (Tecnologico de Monterrey, Mexico) and Guillermo Calleja-Leal (Royal Academy of History, Spain)
DOI: 10.4018/978-1-5225-8933-4.ch014

Abstract

From the public sector's perspective, one of the healthiest ways to optimize the social and organizational dynamics of a country in the digital era is to adapt the national fiscal policy to the socioeconomic needs of the population. The objective of this work is to analyze what key factors and which strategical proposal nations can follow to improve tax efficiency and, once a fair and equitable redistribution of the collected financial resources is achieved, to offer higher levels of welfare for the entire population in the digital era.
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A Decalogue Of Measures To Implement The European Fiscal Model

From a budgetary point of view, the application of the European model in the developing countries’ social and economic reality is given, among others, by the following measures:

Key Terms in this Chapter

Ordoliberalism: Born at the University of Freiburg (Germany), this School of Thought advocates that the State must act to avoid monopolies born in free market economies derived from fair competition. Therefore, for Ordoliberalism, the State must ensure the general welfare by creating an adequate legal environment to maintain a healthy level of competitiveness while following free market principles.

ALPF2: Acronym of “assets liquid in the hands of the public plus the investment funds and insurance instruments,” it embraces all these financial instruments that can be made liquid for their tenants.

Digital Literacy: The ability to locate, organize, understand, evaluate, and analyze information using digital technology.

Moral Tax: The ethical part of the charge that remains when the individual is aware that he or she is committing something illegal.

Tanzi-Oliveira Effect: Caused by fiscal deficits fueled by high inflation rates, which creates an inadequate tax collection in real terms.

E-Government: The use of ICTs in the internal processes of government and the delivery of products and services following private sector-related (e-business) or public-related strategies.

Inefficiencies X: Generated by the bottlenecks caused when solving problems in bureaucratic organizations. A correct vertical-horizontal and horizontal-horizontal communication process can eliminate these inefficiencies with the help of ICTs and the digitalization of the entire territory, so information flows in different operational levels transmitted in real time.

Fiscal policy: Type of economic policy related to public spending and taxes to maintain financial stability, cushion economic cycles, and generate economic growth and employment.

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