He wishes to thank Professor Mick Moore, and colleagues researching ‘financing the state’ (part of the DFID-funded Future State research centre at the Institute of Development Studies, University of Sussex), Birger Nerré (GTZ), Richard Sandall (DFID) and Richard Stern (FIAS, World Bank). The article relies on DFID-FIAS surveys and field studies, and is written in a private capacity and may not reflect DFID policy or that of its partners.
State-Building Taxation for Developing Countries: Principles for Reform
Version of Record online: 9 DEC 2009
© The Author 2010. Journal compilation © 2010 Overseas Development Institute.
Development Policy Review
Volume 28, Issue 1, pages 75–96, January 2010
How to Cite
Everest-Phillips, M. (2010), State-Building Taxation for Developing Countries: Principles for Reform. Development Policy Review, 28: 75–96. doi: 10.1111/j.1467-7679.2010.00475.x
- Issue online: 9 DEC 2009
- Version of Record online: 9 DEC 2009
- first submitted May 2009 final revision accepted July 2009
- public finance;
The practical implications of adopting a state-building approach to tax reform need clarity now that the international community has come to recognise the importance of taxation as a ‘state-building’ process. This article seeks to address this gap. It identifies seven operating principles (political inclusion; accountability and transparency; perceived fairness; effectiveness; political commitment to shared prosperity; legitimisation of social norms and economic interests; and effective revenue-raising) as the essential characteristics for state-building taxation, and offers recommendations on potential reforms to implement them, illustrated by DFID/World Bank tax reforms in Yemen, Sierra Leone and Vietnam.