Professor Rodrigo Olivares-Caminal, Of Counsel at Kepler-Karst Law Firm and a debt restructuring expert, has contributed to a publication analysing the fiscal challenges faced by developing countries following the COVID-19 pandemic. The article was presented at a conference organized by the Italian Treasury, World Bank, and the OECD.
Prof. Olivares-Caminal, a co-author of the publication, examines the widening tax gap between developed and developing nations that emerged after the pandemic. The article highlights the increased public debt in developing countries due to the health crisis and its impact on fiscal resources. It emphasizes that external shocks can push countries beyond their debt sustainability limits, significantly restricting their fiscal flexibility.
The text also compares the fiscal policies adopted by advanced and developing economies to mitigate the effects of crises. It notes that advanced economies generally have a more favourable environment for rapid recovery.
You can read the full article here.
Access the Spanish version here.
