• Login
    View Item 
    •   OpenDocs Home
    • Institute of Development Studies Research Repository
    • IDS Research
    • View Item
    •   OpenDocs Home
    • Institute of Development Studies Research Repository
    • IDS Research
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    How does taxation affect the quality of governance?

    Thumbnail
    Download
    Wp280.pdf (410.4Kb)
    Date
    2007
    Author
    Moore, Mick
    Metadata
    Show full item record
    Impact
    Abstract
    This paper summarises the policy implications of a growing debate about the connections between taxation and the quality of governance in developing countries. Taxation – or the absence of tax – impacts on the quality of governance through two main channels. The first relates to the degree of dependence of governments on general taxation for their financial resources. Many governments do not need to make much tax effort because they have large non-tax incomes from oil, gas and mineral exports or from foreign aid. State elites are then financially independent of citizen-taxpayers. This changes the political incentives that they face, and the ways in which they seek to obtain, use and retain power. The long term consequences for governance are malign: state elites are less responsive and accountable to citizens; and, depending on the sources of non-tax revenue, may have less incentive to build up the political and organisational capacities of the state. States are likely to be simultaneously arbitrary and weak. All else being equal, the dependence of governments on general taxation has positive effects on the quality of governance. But that relationship is not automatic. How governments tax also matters. We cannot assume that, because they are fully dependent on taxation for revenues, governments will be capable, accountable, or responsive. They may levy taxes coercively, and thereby damage state-society relations and reinforce poor governance. Public authorities in contemporary poor countries face some incentives to tax coercively. Establishing more consensual taxation practices is an important practical route to improving governance. Aid donors could play a more constructive role. Keywords: taxation, accountability, responsiveness, state capacity, governance, aid, oil
    URI
    https://opendocs.ids.ac.uk/opendocs/handle/20.500.12413/4044
    Citation
    Moore, M. (2007) How does taxation affect the quality of governance? Working paper series, 280. Brighton: IDS.
    Is part of series
    IDS working papers;280
    Library catalogue entry
    http://bldscat.ids.ac.uk/cgi-bin/koha/opac-detail.pl?biblionumber=185454
    Rights holder
    Institute of Development Studies
    Rights details
    http://www.ids.ac.uk/files/dmfile/IDSOpenDocsStandardTermsOfUse.pdf
    Collections
    • IDS Research [1598]

    About OpenDocs | OpenDocs Policy | Help | Contact Us | Send Feedback | Disclaimer and Cookies
     

     

    Browse

    All of OpenDocsCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsThis CollectionBy Issue DateAuthorsTitlesSubjects

    My Account

    LoginRegister

    Statistics

    Most Popular ItemsStatistics by CountryMost Popular Authors

    About OpenDocs | OpenDocs Policy | Help | Contact Us | Send Feedback | Disclaimer and Cookies