Ideas to Action:

Independent research for global prosperity

Views from the Center

CGD experts offer ideas and analysis to improve international development policy. Also check out our Global Health blog and US Development Policy blog.

 

A table showing tax revenue as a share of GDP in sub-Saharan Africa

Enhancing Domestic Resource Mobilization: What are the Real Obstacles?

At the Center for Global Development, we recently initiated a project to develop more effective and equitable strategies for domestic resource mobilization in low-income countries in sub-Saharan Africa (SSA). The impetus for the project is the Addis Ababa Action Agenda for financing development, which calls on developing countries to step up their efforts to collect more taxes domestically to achieve the Sustainable Development Goals (SDGs). 

Exaggerating Multinational Tax Avoidance Does Not Help Africa

Matti Kohonen of Christian Aid holds out the enticing prospect that African countries could collect an additional 1.5 percent of gross domestic product in tax if only big multinationals would stop dodging. The problem is that this estimate is (still) based on wishful thinking. Multinational corporations should pay tax, but the scale of potential revenues depend on underlying levels of investment and profitability in a country. 

Photo of Calculator

A New Standard for Country-by-Country Reporting on Tax?

The vexed question of whether country-by-country (CBC) reports on multinational companies’ tax affairs should be put into the public domain has been a sticking point in debates on responsible tax practice for years.