Financial Transparency Coalition

The vast majority of Covid-19 recovery funds have gone to big corporations instead of toward welfare, small firms, or those working in the informal economy, according to the first major analysis of public bailout funds disbursed in developing countries during the pandemic.

Tax incentives have been widely used on the justification that they attract investments. Yet there is mounting evidence that they are largely ineffective. So why are they still so popular among politicians and policymakers?