TAILIEUCHUNG - STIMULATING SUSTAINABLE ECONOMIC GROWTH

Households will use the least costly and least disruptive means of responding to taxes, if in fact they respond at all, according to public finance economist Joel Slemrod. If households can simply alter the timing of an activity and largely avoid the impact of a tax change, they can be expected to do so. If they can alter the way their income is categorized for tax purposes and avoid the tax, they can be expected to do that. Households have been shown to dramatically shift when they sell an asset in advance of a pending capital gains tax increase, such as. | o Stimulating sustainable economic growth CIDA S SUSTAINABLE ECONOMIC GROWTH STRATEGY Canadian International Agence canadienne de H H Development Agency developpement international Canada STIMULATING SUSTAINABLE ECONOMIC GROWTH CIDA s Sustainable Economic Growth Strategy CIDA s mission is to lead Canada s international efforts to reduce poverty in the developing world. While global poverty rates were falling prior to the 2008 economic crisis this resulted from rapid growth in a few mostly larger countries. It showed that extreme poverty declines faster and more sustainably in countries that create and maintain robust economic growth. There is a growing consensus that to reduce poverty development efforts need to focus on stimulating sustainable long-term national regional and local economic growth. This in turn can generate the financial resources governments in developing countries need to invest in the well-being of their citizens while building resilience to social economic and environmental shocks. A dynamic growing economy will increase revenue generation and create employment leading to higher continued personal and household incomes that can benefit the most impoverished. Canada s own experience of sustainable economic growth underscores the importance of open trade and free markets governed by prudent policy and sound regulation. This means avoiding the extremes of protectionism on the one hand and ungoverned markets on the other. Expanding domestic regional and international markets enabling investment and sharing knowledge increasing trade opportunities and improving the competitiveness of enterprises unlocks new areas for growth. These actions also mitigate the exposure of developing countries to external economic risks. In small states and landlocked developing countries the private sector faces many barriers connecting to larger regional and global markets. Export earnings remittances private investment domestic savings and external loans remain the .

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