Teaching External Contacts 1. The importance of Fiscal Studies as part of the international development programmes of governments and international agencies continues to grow. Tax and social security policy are regarded as central planks in the contemporary agenda for international development. To sustain public sector investment and capacity building requires sustainable sources of domestic tax revenue, with the result that well-designed tax policy along with effective tax administration will be a central objective within development programmes. The continuing debate about the appropriate boundaries for public and private provision of pensions, unemployment and other types of social insurance ensures a central place for work by economists and others on the role of fiscal policy in a changing world.
Globalisation is a process which has an important fiscal dimension.
Increased electronic trading poses a substantial issue for tax administrations. The growth of Multinational Enterprises means that countries receiving substantial inward investment have to be vigilant on matters such as transfer pricing to ensure that countries derive some return on the economic activity they host, and do not find all profits being exported. Competition between tax jurisdictions to attract MNE s is another process which can be harmful to host countries. The process of tariff reform is posing serious threats to some industrial and agricultural sectors which have become accustomed to fiscal protection. A rapid reduction in import tariffs can make entire sectors uncompetitive overnight, resulting in substantial unemployment and income loss and requiring rapid structural adjustment to absorb the resources released.