The IMF’s macroeconomic assessments and recommendations are highly influential in shaping fiscal policy in developing countries, including taxation. This is due to the IMF’s leverage over indebted countries and the impact of assessments in surveillance reports on financial markets among other channels.
This project aims to identify whether and to what extent the IMF has included welfare considerations, such as equity, redistribution, and fairness, in its tax policy agenda over time. In addressing these questions, the research would contribute to identifying IMF’s approach to tax policy in its bilateral surveillance function, and thus, will offer insights on the nature and evolution of the influence the IMF has exercised on member countries since 2000.
The project involves a quantitative text analysis of all Article IV consultation reports it has published between 2000 and 2004, to identify patterns in the use of tax-related and tax welfare-related terms. This analysis will be complemented by a qualitative content review of a sample of Article IV consultation reports.