ABSTRACT
Introduction: what is the Commitment to Equity Assessment? Based on the economics of the welfare state,1 the Commitment to Equity Assessment (CEQ) is a diagnostic framework used to measure and evaluate how aligned government expenditures and taxes are with supporting a minimum living standard and reducing inequality in ways that are broadly consistent with macroeconomic stability, microeconomic efficiency, and growth.2 CEQ evaluates government efforts in individual countries in terms of the following criteria. Do governments collect and allocate enough resources to support a minimum living standard and human capital accumulation for all? Is the collection and distribution of fiscal resources consistent with eradicating extreme income and human capital poverty gaps? Do governments collect and distribute resources equitably? Do they ensure that spending is fiscally sustainable and that programs are compatible with incentives? Do they collect and publish relevant information, and are programs subject to independent evaluations? For each criterion, there are quantitative and qualitative indicators derived from poverty and inequality analysis, tax and benefit incidence analysis, and best practices in macroeconomic management, program and policy design and evaluation, and accountability indicators.3
