Ideas to Action:

Independent research for global prosperity

Publications

 

Clock with SDGs in background
June 21, 2018

Domestic Resource Mobilization in Low-Income Countries: Proposal for a Surge in Multilateral Support

Rising debt vulnerability in low-income countries (LICs) is emerging as a front-burner issue. Analysts at the IMF and elsewhere are tracking increases in public debt ratios that had fallen after the Heavily Indebted Poor Countries Initiative and the Multilateral Debt Relief Initiative. Forty percent of LICs are either in, or at high risk of, debt distress. Many factors have contributed to rising debt-to-GDP ratios: falling commodity prices, deteriorating fiscal balances, conflict, and corruption, among others. The larger fiscal deficits are fully or partially accounted for by increased public investment in about half of LICs. Which brings us to the challenge of financing the SDGs.

Cover of Policy Paper 118
February 8, 2018

Tax and Development: New Frontiers of Research and Action

This paper looks at estimates of the potential gains from taxing across borders, alongside largely domestic measures such as property tax, personal income tax, VAT, and tobacco taxes. It finds that while action on cross-border taxation could yield additional tax take in the region of one percent of GDP, in many countries measures targeting the domestic tax base might deliver something in the region of nine percent. The main enabler is political commitment.

Maya Forstater
Cover of brief on Tax and Development
February 8, 2018

Tax and Development: New Frontiers of Research and Action (Brief)

Domestic measures have greater potential for raising tax yields over time. Rough estimates indicate that there may be $9 of additional tax capacity from domestic policy measures for every $1 from international action. The main enabler is political commitment.

Maya Forstater