Melbourne Law School The Melbourne Law Masters

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Subjects 2008


Fiscal Reform and Development 730789

Objectives

A candidate who has successfully completed the subject should:

  • Understand the link between governmental tax and expenditure policy, otherwise known as fiscal policy, and development
  • Understand the goals of fiscal reform in the context of broader development goals
  • Have a good general understanding of tax and spending mechanisms and policy
  • Understand international and domestic processes of fiscal reform, and the institutions and experts involved in fiscal reform for development
  • Be able to analyse critically some key blueprints for fiscal reform in developing countries, including Letters of Intent and Poverty Reduction Strategy Papers (PRSPs), developed by countries together with the World Bank and International Monetary Fund
  • Be able to locate resources in respect of fiscal reform and development both generally and for particular countries, especially online resources
  • Be able to analyse issues in fiscal reform and make recommendations in a particular development context.
Syllabus

This subject will provide an overview of fiscal systems, policy and law design principles and will then examine a number of specific fiscal issues in development. It will incorporate case studies of fiscal reform projects and issues for particular developing countries.

Principal topics will include:

  • Budgets, including fiscal balance or deficit; tax mix, statistics and structures; expenditure mechanisms, statistics and policy; and fiscal reform goals
  • Fiscal reform policy principles, including efficiency, equity, administrability and budget constraints
  • Tax law design and drafting fundamentals, including reviewing examples of tax laws
  • Specific fiscal reform issues, including tax incentives for regional or international investment; requirements to cut expenditures so as to meet budget constraints; introduction of a Value Added Tax; and administrative reform
  • Domestic and international processes of fiscal reform, including the political dimension.