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Verbum Incarnatum: An Academic Journal of Social Justice

Abstract

Taxation is critical for satisfying basic needs and generating an inclusive development process that benefits the poor as well as the rich in Latin America. The World Bank offers tax advice to developing countries, and it pressures countries to follow that advice by making it a condition for receiving development loans at preferential interest rates. This paper argues that in response to a short-term financial crisis. the World Bank recommended a regressive tax system that raises revenue quickly, but, in the long-run slows the satisfaction of basic needs and obstructs the implementation of an inclusive development process. The article concludes with recommendations.for an alternative tax policy.

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