Economics & Development

This chapter explores how the rapid digitalization of tax administrations is transforming the collection and use of administrative tax data for policy making. It highlights the widespread adoption of tax management information systems (TMISs) and electronic invoicing, which enable governments to collect large-scale, high-frequency data on economic activity in near real time. Compared with traditional surveys, administrative tax data offer broader coverage, longitudinal tracking, and the ability to link information across government systems, making them valuable for policy analysis and research. The chapter demonstrates how tax data can be used to understand economic behavior, evaluate policies, and generate evidence-based insights, while also addressing challenges related to institutional capacity, data integration, privacy, and security. It further presents collaboration models, analytical tools, and practical recommendations to help governments, researchers, and public institutions strengthen the use of administrative tax data for informed decision-making and improved public policy outcomes.

This chapter examines how digital technologies are transforming tax administration and expanding the potential for more efficient and equitable revenue collection. It highlights the rapid adoption of digital tools, including electronic filing and payment systems, digital taxpayer registration, electronic fiscal devices, automated audits, advanced data analytics, and artificial intelligence. These technologies strengthen core tax administration functions by improving taxpayer identification, verifying tax liabilities, and enhancing revenue collection. While digitalization can increase revenue, reduce compliance costs, improve transparency, and broaden tax system coverage, many countries have yet to realize these benefits fully due to weak enforcement, limited analytical capacity, inadequate data infrastructure, and emerging privacy and governance concerns. Focusing on emerging market and developing economies, the chapter assesses the impact of technology on tax administration, explores the constraints limiting its effectiveness, and outlines the policy and institutional conditions required for successful digital transformation.

Thailand has transitioned into a modern, industrial and service-oriented economy with strong macroeconomic foundations, yet growth momentum has softened, productivity gains have slowed, demographic aging is accelerating, household and public balance sheets are under pressure, and external shocks and climate risks have heightened vulnerabilities. In the coming years, the Bank will focus on boosting private sector dynamism and international competitiveness by removing barriers to investment, strengthening regulatory predictability, and deepening integration into higher value activities, while fostering business entry and scale, fair competition, and small and medium enterprise growth through better access to finance, technology, and managerial capabilities. The agenda will accelerate digital adoption and innovation, including artificial intelligence (AI), by expanding firm uptake of digital tools, strengthening data governance and digital public infrastructure, and growing a more robust innovation ecosystem. It will also invest in infrastructure to improve connectivity and reliability, extend opportunities beyond Bangkok and the Eastern Economic Corridor (EEC), and reduce disaster exposure through resilient transport, ports, logistics, energy services, and basin-scale water management, enabling growth in agribusiness, advanced manufacturing, digital services, wellness and health tourism, creative industries, and logistics. To build capabilities, the Bank will support stronger foundational, technical and vocational skills aligned with industry demand, expand inclusive lifelong learning reaching informal workers, and promote productive longevity by improving women’s labor force participation, modernizing pension and reemployment pathways, and strengthening preventive health and long-term care to harness the silver economy. To buffer risks, the Bank will back reforms to enhance fiscal sustainability, lower household debt, and improve the efficiency and equity of public spending; advance climate resilience and the low-carbon transition through resilient, low-carbon investment, carbon pricing and market development, and power sector reforms that unlock renewable energy, energy efficiency, and electric vehicle (EV) value chains; and expand inclusive social protection and quality services by leveraging digital delivery systems and interoperable social registries, improving regional equity in education and health, investing in childcare and eldercare, and easing regulatory pathways to formalization so that growth is more inclusive and resilient.

Viet Nam's tech and electronic exports continued to benefit from the global Al investment boom. However, imports grew even faster, driven by the input needs of export-oriented FDI manufacturers and higher import prices, resulting in a trade deficit of US$19 billion in the first eight months of 2026, the highest in 10 years. Inflation re-accelerated to 4. 9 percent in August as rising oil prices pushed up transport costs, increasing pressure on household purchasing power. While banking system liquidity improved, a steady upward drift of about 150bp in interest rates over the past year has raised financing costs for businesses. The exchange rate remained stable, supported by strong FDI inflows, high interest rates, and a weaker US dollar during August. Fifty percent of the state budget was disbursed in the year to August with implementation challenged by materials shortages, land-clearance issues, and weather-related disruptions.

Xuất khẩu công nghệ và điện tử của Việt Nam tiếp tục hưởng lợi từ sự bùng nổ đầu tư toàn cầu. Tuy nhiên, nhập khẩu còn tăng nhanh hơn nữa, do nhu cầu đầu vào của các nhà sản xuất FDI định hướng xuất khẩu và giá nhập khẩu tăng, dẫn đến thâm hụt thương mại 19 tỷ USD trong tám tháng đầu năm 2026, mức cao nhất trong 10 năm. Lạm phát tăng trở lại mức 4. 9% vào tháng 8 khi giá dầu tăng đẩy chi phí vận chuyển tăng, gây áp lực lên sức mua của hộ gia đình. Trong khi thanh khoản hệ thống ngân hàng cải thiện, sự tăng đều đặn khoảng 150 điểm cơ bản lãi suất trong năm qua đã làm tăng chi phí tài chính cho doanh nghiệp. Tỷ giá hối đoái duy trì ổn định, được hỗ trợ bởi dòng vốn FDI mạnh, lãi suất cao và đồng đô la Mỹ yếu hơn trong tháng 8. Năm mươi phần trăm ngân sách nhà nước đã được giải ngân trong năm đến tháng 8 với việc thực hiện gặp khó khăn do thiếu hụt nguyên liệu, vấn đề khai hoang đất và gián đoạn liên quan đến thời tiết.

The private sector is the main driver of economic growth and development, but it needs a functioning public sector to thrive. Governments around the world invest heavily in public goods that are essential for private sector growth, from roads, bridges, and ports to regulatory frameworks. Yet institutional challenges such as waste, corruption, insufficient expertise, and uneven enforcement often weaken the link between spending and results. Consequently, policies and projects can frequently prove less effective than hoped for by citizens, firms, and policy makers themselves. Institutions and Prosperity: Public Institutions for Enabling the Private Sector focuses on why policy implementation fails and how it can be improved. It focuses on two areas that sit at the heart of market competition: public procurement and regulation. This report advances current knowledge on governance and institutions by focusing on specific public institutions rather than on entire countries or governments. Because governments may implement policies effectively in some areas but not others, the report concentrates on the individual ministries, departments, and agencies responsible for implementation. The report also develops a conceptual framework that can be used to identify institutional constraints to effective policy implementation. The framework unpacks institutional capacity along four organizational dimensions and three cross-cutting governance dimensions. This report applies the framework to public institutions mandated to foster private sector development, focusing on procurement and regulatory institutions. It highlights the challenges and trade-offs these institutions must navigate to enable the private sector effectively while minimizing favoritism and corruption. More broadly, the report demonstrates how the framework can help diagnose the specific and interconnected constraints that frequently prevent public institutions from implementing their mandates effectively.