December 15, 2020
Elections and Political Cohesion Can Promote Tax Reforms
In a paper and blog we delve into political considerations that influence the implementation of tax reforms in 45 emerging market and low-income economies.
Views from the Center
November 18, 2020
What Influences Tax Rates in Sub-Saharan Africa?
The Addis Ababa Agenda for financing development pays special attention to domestic revenue mobilization to help finance the Sustainable Development Goals (SDGs) in developing countries. In the case of sub-Saharan African countries, much of the discussion has centered on improving their overall revenue performance, and while they have, there is still a long way to go.
October 14, 2020
Introducing a Dashboard for Assessing Fiscal Policy in Low-Income Countries
The level and composition of taxes and expenditures vary considerably across low-income countries, which means their effects on countries’ growth, economic stability, redistribution, and welfare also differ.
July 31, 2020
Exploring the Feasibility of Medium-Term Revenue Strategies in Developing Countries
Many developing countries are pursuing domestic revenue mobilization (DRM) initiatives, which is critical for them to finance the spending necessary to enable sustainable development. The need for DRM has now taken on greater urgency given the fiscal implications of the COVID-19 crisis.
July 24, 2020
Measuring Domestic Resource Mobilization–Thoughts on a New Study by NORAD
While there is debate in the management literature about the primacy of measurement in effecting change, there is no doubt that it is a necessary component of bringing about lasting change.
June 11, 2020
Well-Designed Tax Reforms Can Improve Income Distribution in Developing Countries
In a recently published paper we examine the experience of 45 developing countries (23 emerging and 22 low-income countries) over the 2000-2015 period and find that tax reforms have raised the income share of the poorest population groups within countries.
April 17, 2020
The COVID-19 Crisis and Budgetary Space for Health in Developing Countries
Virtually all countries in the world have responded to the COVID-19 crisis by implementing fiscal and monetary measures, significantly larger in relation to national output than those employed during the 2008 financial crisis. The magnitude of fiscal measures to counter the shock varies across developing and advanced economies.
March 10, 2020
Tax Revenues in Africa Will be Insufficient to Finance Development Goals
The IMF estimates that on average, low-income countries (LIC) will need additional resources amounting to 15.4 percent of GDP to finance the Sustainable Development Goals (SDGs) in education, health, roads, electricity, and water by 2030. These resource requirements are even greater in sub-Saharan Africa than in a typical LIC: the median sub-Saharan African country faces additional spending of about 19 percent of GDP. In the average LIC, the IMF estimates that of the required additional financing, 5 percentage points of GDP would have to come from domestic taxes.
January 22, 2020
Sub-Saharan Africa and International Taxation: Time for Unilateral Action?
While sub-Saharan African (SSA) countries have made some progress in collecting more taxes domestically in the last 20 years, international tax issues remain a significant concern for these and other developing countries, reflecting aggressive tax planning by multinational enterprises (MNEs) and the international initiatives designed by G20-OCED countries in response. Drawing on a new CGD paper on international taxation and developing countries, we argue here that the time has come for SSA countries, and developing countries in general, to take unilateral action.
January 7, 2020
Scope for a Grand Bargain to Reduce Tax Exemptions?
The international community is continuously exhorting developing countries, particularly the low-income ones, to mobilize more revenues domestically, but could reducing tax concessions provide a "grand bargain" for developing countries?
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