Inter-American Development Bank (IDB)

Fiscal and Technical Support Consultant

Inter-American Development Bank (IDB)

Job Description

Fiscal and Technical Support consultant Background of this search: The Fiscal Management Division (IFD / FMM) is looking for a consultant with experience in fiscal policy and management, including growth and equity issues, knowledge in Database Management, econometric Analysis, and expertise in fiscal information management. Founded in 1959, the Inter-American Development Bank ("IDB" or "Bank") is the main source of financing for economic, social and institutional development in Latin America and the Caribbean. Providing loans, grants, guarantees, policy advice, and technical assistance to the public and private sectors of their borrowing countries. Fiscal space in the region is generally limited due to low tax collection and efficiency problems due to the lack of rationalization and targeting of public spending. This is also affected by high informality and inequity and the pressures of the aging population (IMF, 2011). More evidence is needed to formulate Evidence-Based Practices (EPBs) that lead to a higher collection, equity, and efficiency of public spending. In the first place, an analysis of the incidence of fiscal policy on equity and poverty that takes into account the impact generated by disincentives on behavior is necessary. While a change in tax or spending policy could have a direct redistributive effect, when induced changes in behavior are taken into account, it could have the opposite effect and counteract it. Furthermore, it is necessary to continue estimating technical inefficiency in public spending; quantifying leaks in subsidies and transfers; in public salaries and corruption in public purchases, especially infrastructure. Third, strategic planning and allocation of public spending must be improved through the use of social rates of return and impact evaluations. The recent theoretical and empirical literature has focused almost exclusively on operational efficiency, assuming that spending allocation is optimal or perhaps difficult to address. International experience suggests, for example, that investment in early childhood education is very low relative to its high return (Heckman, 2008). Fourth, the implementation or modernization of Integrated Fiscal and Social Information Systems (SIIF) could improve the targeting of spending, equity, and tax efficiency. Several countries in the region use systems with statistical or geographic targeting (means-tested). However, these systems only explain 50% or 60% of the variability observed in living standards (Robles et al., 2015). Information technologies can be used to build large integrated databases (Integrated Financial Information System — SIIF) that allow cross-checking of data and allow the detection of tax evasion and other tax fraud and build taxpayer risk profiles to carry out more selective and effective audits and inspections, as well as to improve the targeting of spending. Fifth, a lack or inappropriate use of fiscal institutions such as Results-Based Budgets (PbR), Spending Reviews, or Medium-Term Spending Frameworks (MFMP) is detected that helps to improve the allocative efficiency of spending. An effective PbR requires prioritizing policies through causal models; define indicators based on these models that are informative about the program and the result to be measured, publish them periodically, and that allows an incremental reallocation of public spending. These could be combined with periodic Spending Reviews, the MFMP, reinforcing the mechanism and enabling improvements in the efficiency, allocation, execution, monitoring, and evaluation of spending (Izquierdo, Pessino & Vuletin, 2018). Finally, there is little identification, quantification, and management of fiscal risks, and many of these liabilities are hidden (off-budget). There are practically no projections of spending or actuarial deficit in health or other expenses related to old age, despite the fact that fiscal pressures will increase, with the old-age dependency ratio expected to multiply by three by 2050. Considering only demographic factors and Assuming that the coverage and benefits of the system remain constant, pension spending is expected to go from 5% to 11% of the Gross Domestic Product (GDP). Health spending is expected to also increase since the cost of care for older adults is much higher than the average, as well as for technological reasons (Izquierdo, Pessino, and Vuletin; 2018). The region could benefit from joint work with governments, other international organizations, Non-Governmental Organizations (NGOs), and other institutions, where experiences are shared, and Collective Action is carried out on different problems. The team’s mission: The Institutions for Development Sector (IFD) is responsible for conceptualizing, preparing, supporting the execution and supervising the Bank's operations related to governance, strengthening and reform of the public sector, decentralization, economic and fiscal issues, and market development. Capital and financial institutions, and competitiveness at the national, regional, and local levels. The Fiscal Management Division (IFD / FMM) has the primary purpose of supporting the governments of Latin America and the Caribbean to strengthen fiscal policy and management, both at the national and sub-national levels, in order to promote economic growth and reduction of inequity and poverty. To support the countries in this task, FMM finances projects to promote development through the following areas: (i) tax policy and Administration; (ii) public spending policy and management; (iii) subnational fiscal policy and management; (iv) fiscal sustainability and macro-fiscal policy; and (v) fiscal transparency. What you’ll do:
  • First responsibility:
    • Evaluate the availability of information on tax matters in various Ministries and Agencies.

    • Advise the Team Leader on the most efficient databases for the study.

    • Collect and process data on tax matters that are followed in the Division as required.

  • Second responsibility: Make estimates of technical and allocative inefficiencies using econometric models and packages and propose applicable solutions.

  • Third responsibility: Review the literature on the efficiency and equity of fiscal policy, diagnose the current problem and situation in Latin America and the Caribbean (LAC), and articulate reports on success stories and propose possible solutions in the region.

  • Fourth responsibility: Contribute to research on various tax issues, such as, for example, on the fiscal consequences of population aging, informality, wage differentials between the public and private sectors, and improving efficiency in targeting and equity in spending and taxation. In turn, support the Team Leader in the bank's missions and operations and participate in them.

  • Fifth responsibility: Preparation of strategic documents in which various sources of information are used, providing its technical inputs, and integrating those of clients and specialists within the IFD / FMM Division.

  • Sixth responsibility: Make reports on the documents received by the knowledge Coordination.

  • Seventh responsibility: Make proposals for materials for technical Cooperation and research work and provide advice to the specialist on technical issues of the Cooperation itself.

  • Eighth responsibility: Produce reports and documents, with bibliographic search, notes, reviews, tables, graphs, etc.

  • Ninth responsibility: Make presentations on the progress and findings of the investigations carried out and advise the team on their applicability in future FMM projects.

What you’ll need:
  • Citizenship: You are a citizen of one of our 48-member countries. We may offer assistance with relocation and visa applications for you and your eligible dependents.

  • Consanguinity: You have no family members (up to fourth degree of consanguinity and second degree of affinity, including spouse) working at the IDB Group.

  • Education: Bachelor's Degree in Economics or Public Policy, with solid knowledge of Fiscal / Applied Economics; Econometrics and programming skills.

  • Experience: 2 years of research experience in tax or applied labor economics

  • Languages: Fluency in Spanish and English required.

Core and Technical Competencies:
  • The consultant must also possess flexibility and versatility to work on a wide range of fiscal problems and apply different econometric and Data Management techniques, as well as provide inputs in projects of the Division and under the supervision of senior specialists.

  • The candidate must be competent in the use of advanced econometric packages, including STATA, and in the management of large and complex databases. The candidate must also be capable of writing technical and research texts

Opportunity Summary:
  • Type of contract: Full time International consultant

  • Length of contract: 12 months

  • Location: HQ, Washington DC

  • Responsible person: IFD / FMM Principal Specialist

  • Requirements: You must be a citizen of one of the IDB’s 48 member countries and have no family members currently working at the IDB Group.

Our culture: Our people are committed and passionate about improving lives in Latin-America and the Caribbean, and they get to do what they love in a diverse, collaborative and stimulating work environment. We are the first Latin American and Caribbean development institution to be awarded the EDGE certification, recognizing our strong commitment to gender equality. As an employee you can be part of internal resource groups that connect our diverse community around common interests. Because we are committed to providing equal opportunities in employment, we embrace all diversity and encourage women, LGBTQ+, persons with disabilities, afro-descendants, and indigenous people to apply. About us: At the IDB, we’re committed to improving lives. Since 1959, we’ve been a leading source of long-term financing for economic, social, and institutional development in Latin America and the Caribbean. We do more than lending though. We partner with our 48-member countries to provide Latin America and the Caribbean with cutting-edge research about relevant development issues, policy advice to inform their decisions, and technical assistance to improve on the planning and execution of projects. For this, we need people who not only have the right skills, but also are passionate about improving lives. Our team in Human Resources carefully reviews all applications. Due to the current Covid-19 pandemic and its implications for our Region, the IDB Group is reviewing its hiring needs and re-prioritizing its areas of talent acquisition. We encourage candidates to continue to apply to the active postings, yet current job openings may be subject to further decisions in terms of timing of the processes, or other actions, in accordance with business needs. Final hiring decisions may also be conditioned to the candidate’s ability to timely relocate to the post of duty at the moment of starting service.” Additional Information

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