Overview

Domestic resource mobilization is critical for enhanced resilience and financing sustainable growth. Increasing numbers of developing and emerging-market countries face fiscal or debt sustainability pressures following successive shocks affecting public finances. Resilient responses typically involve local action and information generation with national and cross-border coordination and cofinancing. This report shows how digital transformation involving tax and fiscal policy rationalization, as well as new institutional arrangements, can help achieve sustainable outcomes. Case studies are based on federal and unitary countries, along with special issues related to small island states. These include South Asia, as well as the People's Republic of China, the Philippines, Singapore, Thailand, and Timor-Leste-and Mexico-to highlight digital transformation possibilities across countries and political systems. Despite differences in the political economy and institutional structures, there are common themes in relation to managing shocks and digital transformation. Policy cross-fertilization, especially between Asia and Latin America, demonstrates the importance of shared experiences across developing countries.

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