1945

While chapter 3 demonstrated that adequate fiscal space helped increase the region’s ability to withstand past adverse shocks, chapter 4 showed that building such resilience could increase the risk of public debt distress in many Asia-Pacific economies. Together, these analyses bring forward a critical policy question. How can Asia-Pacific countries mobilize additional financial resources to enhance fiscal space and maintain public debt sustainability while pursing the 2030 Agenda for Sustainable Development? The answer to this question comprises the essence of this chapter.

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