[Asia Economy Reporter Byunghee Park] Alejandro Werner, the Western Hemisphere Director of the International Monetary Fund (IMF), who will retire on August 31, argued that wealthy individuals in South America should pay more taxes.
In an interview with a foreign media outlet, Director Werner pointed out that South America is the most unequal region in the world and warned that without addressing demands for a fair economic system, there will be no progress. He insisted that governments must make the wealthy pay more taxes.
He diagnosed that the recent social instability in South America is due to demands for fair income distribution. He added that a more radical tax system is needed in South America, with high-income earners paying significantly more taxes than now, and that competition in the economic sector should be more intense.
Before joining the IMF in 2013, Werner worked at the Mexican Ministry of Finance.
The IMF currently forecasts South America's economic growth rate this year at 4.6%. Werner noted that although COVID-19 infections continue, economic activity remains much more active than expected, and he predicted that the 4.6% forecast will be revised upward in the future.
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He said, "The correlation between economic activity and COVID-19 infection rates will be much weaker in the second half of this year than it is now."
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