Analysis of government spending in Latin America and the Caribbean reveals widespread waste and inefficiencies that could be as large as 4.4% of the region’s GDP, demonstrating ample room to improve basic services without necessarily spending more resources. The findings are part of a recent report published by the Inter-American Development Bank, “Better Spending for Better Lives: How Latin America and the Caribbean Can Do More with Less”.
The publication examines the spending habits of governments across the region countries to determine if there is too much or too little spending on various priorities and whether governments are investing enough to ensure a better future for the population. The report also examined whether government expenditures improve or erode socioeconomic equality.
Along with the diagnosis, the report offers several policy recommendations on how to improve the efficiency of government spending.
According to the World Economic Forum Competitiveness Report, corruption (16.9%), inefficient government bureaucracy (15.2%) and taxes (13%) are the most problematic factors in doing business in the Dominican Republic.
The country is ranked 129th of 137 countries around the world for the strength of its government institutions.
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Better Spending, Better Lives
IDB
4 October 2018
