Where is the conference being held?

The conference is being held in Quito, ECU.

What is the primary focus of the conference?

The conference focuses on rethinking fiscal policy and modelling in Latin America.

Regional Conference on Fiscal Policy and Modelling – Rethinking Fiscal Policy in Latin America

Name: Regional Conference on Fiscal Policy and Modelling – Rethinking Fiscal Policy in Latin America
Start: 2026-07-13 00:00:00+00:00
End: 2026-07-13 00:00:00+00:00
Location: Quito

Jul 13, 2026Quito, EcuadorIn-person

Registration open

The Regional Conference on Fiscal Policy and Modelling, hosted in Quito, ECU, focuses on re-evaluating fiscal policy frameworks within Latin America. This event brings together experts to discuss innovative approaches and models for fiscal management in the region. The conference aims to foster a deeper understanding of the economic challenges and opportunities unique to Latin American nations, promoting dialogue on sustainable fiscal strategies.

Committees & topics

Topics
Distributive Analysis and Fiscal Policy Design in Latin America · Analytical Tools and Simulation Methodologies for Fiscal Policy · Fiscal Policies for the Ecological and Energy Transition · Fiscal Digitalization and Governance for Fiscal Sustainability

Why it matters

Fiscal policy is a cornerstone of economic stability and development, particularly in regions facing diverse economic landscapes and persistent challenges. In Latin America, effective fiscal management is crucial for addressing issues such as inequality, economic volatility, and the need for sustainable growth. This conference provides a vital platform for policymakers, academics, and practitioners to share research and insights, contributing to the formulation of more resilient and equitable fiscal policies.

The discussions will likely delve into how different fiscal tools can be adapted to the specific socio-economic contexts of Latin American countries. This includes exploring the role of taxation, public spending, and debt management in promoting long-term prosperity. By fostering a collaborative environment, the conference seeks to generate actionable recommendations that can inform national and regional policy agendas, ultimately impacting the well-being of citizens across the continent.

How to prepare

Delegates preparing for this conference should focus on understanding the intricate relationship between fiscal policy and economic development in Latin America. A strong grasp of the fundamental principles of fiscal policy, including taxation, public expenditure, and debt management, is essential. Participants should also familiarize themselves with various economic modeling techniques used to forecast fiscal outcomes and assess policy impacts.

Consider applying frameworks such as "Dynamic Analysis" to evaluate the long-term implications of different fiscal strategies. "Understanding Motivations" of various stakeholders, including governments, international organizations, and civil society, will also be crucial for engaging in productive discussions. Furthermore, reviewing the "Power-Interest Grid" can help in understanding the influence and interests of key actors in the fiscal policy arena.

Country perspectives

Where the most-relevant 1 countries stand on the core issues in play. Click through for the full country profile.

Ecuador

As the host nation, ECU is a key participant in discussions on regional fiscal challenges and potential solutions.

Role in topic

ECU provides the geographical context for the conference, highlighting the relevance of fiscal policy discussions to its own national economic landscape and the broader Latin American region. Its experiences with fiscal reforms and economic stability will likely be a point of reference for discussions.

Topics & background

The background behind each topic and the actors that shape it.

Distributive Analysis and Fiscal Policy Design in Latin America

Latin America remains the most unequal region in the world by most measures of income and wealth concentration, despite two decades of social spending expansion. Historically, the region's tax systems have leaned heavily on indirect taxes such as VAT, which tend to be regressive, while personal income tax and property tax collection remain low by OECD standards. Cash transfer programs pioneered in Brazil (Bolsa Família) and Mexico (Progresa/Oportunidades) in the late 1990s and 2000s demonstrated that targeted spending could meaningfully reduce poverty, but the redistributive impact of the fiscal system as a whole — taxes plus transfers — has consistently lagged behind European benchmarks. The core analytical dispute concerns how to measure and improve the distributive incidence of fiscal policy. Frameworks such as the Commitment to Equity (CEQ) methodology developed by Tulane University and adopted by ECLAC, the IDB, and the World Bank have allowed comparable cross-country assessments showing that in several Latin American economies, the combined effect of taxes and transfers can actually leave some poor households worse off in cash terms. Debates now center on the design of progressive income and wealth taxes, the targeting versus universality of transfers, the gendered incidence of fiscal policy, and how to protect redistributive gains amid post-pandemic fiscal consolidation. Today, governments across the region are revisiting tax reforms — Colombia's 2022 reform, Chile's repeated attempts at tax overhaul, and Brazil's 2023 consumption tax reform — with explicit distributive objectives. The challenge is to design instruments that raise revenue, reduce inequality, and remain politically and administratively viable in economies with large informal sectors.

Key players

Analytical Tools and Simulation Methodologies for Fiscal Policy

Modern fiscal policymaking in Latin America increasingly depends on quantitative modelling — microsimulation models, computable general equilibrium (CGE) models, dynamic stochastic general equilibrium (DSGE) frameworks, and input-output analyses — to anticipate the macroeconomic and distributive consequences of reforms. ECLAC, the IMF, the IDB, and the OECD have invested in regional capacity through tools such as LATINMOD, CEQ Assessments, and country-level fiscal models. These instruments allow ex-ante evaluation of tax reforms, expenditure changes, and shocks such as commodity price swings or pandemics. The core issue is methodological heterogeneity and limited transparency. Models often rely on outdated household surveys, undercapture top incomes due to survey truncation, and struggle to integrate informal-sector dynamics that are central to Latin American economies. Behavioral responses, tax evasion, and the interaction between national and subnational fiscal instruments are also imperfectly modelled. Recent advances combining administrative tax records with survey data — pioneered in Uruguay, Chile, and Argentina — have begun to correct these blind spots, revealing significantly higher concentration at the top of the distribution than previously assumed. The debate today is about how to institutionalize independent fiscal modelling capacity within finance ministries, congressional budget offices, and autonomous fiscal councils, and how to harmonize methodologies for regional comparability. Open-source tools, data-sharing protocols, and integration of climate and demographic projections are emerging priorities.

Key players

Fiscal Policies for the Ecological and Energy Transition

Latin America and the Caribbean account for a modest share of global greenhouse gas emissions but are highly exposed to climate impacts and host critical natural capital — the Amazon basin, the lithium triangle, and major hydroelectric and renewable potential. Under the Paris Agreement, regional governments have submitted Nationally Determined Contributions that imply significant fiscal commitments: green investment, fossil fuel subsidy reform, carbon pricing, and adaptation spending. Yet fiscal space is constrained by high debt levels post-COVID, volatile commodity revenues, and competing social demands. The central dispute is how to finance the transition equitably. Carbon taxes exist in Mexico, Chile, Colombia, and Argentina, but rates remain well below levels needed to drive decarbonization, and exemptions are widespread. Fossil fuel subsidies — both consumer and producer — still absorb substantial public resources in several countries. At the same time, the region's dependence on extractive revenues (oil in Venezuela, Ecuador, Colombia, and Mexico; mining in Chile, Peru, and Brazil) creates a structural tension between short-term fiscal needs and long-term transition goals. Debates over a 'just transition' emphasize distributive compensation for affected workers and regions. Current policy discussions focus on green taxonomies, sovereign green and sustainability-linked bonds (issued by Chile, Mexico, Colombia, and Uruguay), debt-for-nature swaps, and the role of multilateral development banks. The challenge is to align fiscal frameworks, public investment management, and tax policy with climate objectives while maintaining macroeconomic stability.

Key players

Fiscal Digitalization and Governance for Fiscal Sustainability

Latin American tax administrations have been at the global frontier of digitalization. Chile, Mexico, and Brazil pioneered electronic invoicing in the 2000s, and the practice has since spread across the region, sharply reducing VAT evasion and generating real-time data on economic activity. Customs modernization, digital tax filing, and integrated taxpayer registries have improved compliance and lowered administrative costs. The OECD, CIAT, ECLAC, and the IDB have supported these reforms, framing them as central to closing the region's tax gap — estimated by ECLAC at around 6 percent of GDP for income and VAT combined. The core challenge has shifted from basic digitalization to governance: how to leverage administrative data for policy design, how to tax the digital economy and multinational enterprises under the OECD/G20 Inclusive Framework's two-pillar solution, and how to protect taxpayer rights and data privacy. Several countries have implemented unilateral digital services taxes or equivalents, while others await Pillar One implementation. Beneficial ownership registries, country-by-country reporting, and exchange of information under the Global Forum have become standard tools against illicit financial flows and base erosion. Fiscal sustainability today depends not only on revenue mobilization but also on credible institutions: independent fiscal councils, transparent budget processes, medium-term fiscal frameworks, and public investment management systems. The debate focuses on how digital tools, artificial intelligence in tax administration, and improved governance can together create the fiscal space needed to meet social and climate commitments without recurrent crises.

Key players