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Financing poverty eradication


  • Anis Chowdhury


This paper provides a review of various sources of finance for poverty reduction. Some salient findings are: declining significance of aid, especially for middle-income countries; aid remains a major source of finance for LDCs; improved government revenue efforts in most developing countries. The paper also highlights revenue losses through trade liberalization, corporate tax concessions and through illicit flows of funds, and provides empirical evidence to debunk negative views about counter-cyclical macroeconomic policies. Some key recommendations are: countries should examine the costs and benefits of corporate tax concessions and the equity impact of indirect taxations, such as value added tax; strengthen tax administration; enhance tax progressivity; international and regional tax cooperation; fulfilling aid commitment and ensuring additionality of aid while dealing with humanitarian crises and climate change.

Suggested Citation

  • Anis Chowdhury, 2016. "Financing poverty eradication," Departmental Working Papers 2016-11, The Australian National University, Arndt-Corden Department of Economics.
  • Handle: RePEc:pas:papers:2016-11

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    More about this item


    poverty; vulnerability; aid (ODA); tax revenue; social protection; counter-cyclical policies;

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H6 - Public Economics - - National Budget, Deficit, and Debt
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development

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