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Yifu Lin stresses that developing countries need to invest now

2009-03-23

The developing countries need investment from various parties now to promote economic development, said Yifu Lin, senior vice president of the World Bank during the four-day UN International Follow-up Conference on Financing for Development that opened in Doha on November 29.

Lin made a keynote speech at the round table seminar called "Mobilizing domestic financial resources for development" hosted by the World Bank during the conference.

He stressed that developing countries need investment from various parties now in order to prepare for growth once the economic situation returns to normal.

The most important source of domestic finance should be the tax system. Establishing a simple and transparent taxation system is extremely important for generating tax, but many developing countries still lack tax systems that encourage investment and their tax collection is not efficient, Said Lin.

He also pointed out the existence of corruption and tax evasion problems that have affected the utilization of domestic natural resources by some developing countries.

He stressed that developing countries should grant greater support to investment in sectors with a comparative advantage and in labor-intensive sectors, which could enlarge the tax base.