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When armed groups tax like a state: The development of tax systems by armed groups

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  • Tanya Bandula-Irwin

Abstract

Conventional portrayals of armed group taxation emphasize ad hoc and unpredictable schemes, yet many insurgents construct surprisingly state-like fiscal systems. This paper explains when and why armed groups institutionalize taxation—developing hierarchies, codified rules, dedicated offices, and internal enforcement—rather than relying on ad hoc extraction. I argue that institutionalization is primarily an adaptive response to a binding revenue imperative, conditional on sufficient organizational capacity.

Suggested Citation

  • Tanya Bandula-Irwin, 2025. "When armed groups tax like a state: The development of tax systems by armed groups," WIDER Working Paper Series wp-2025-89, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2025-89
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    References listed on IDEAS

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    1. Nicholas Eubank, 2012. "Taxation, Political Accountability and Foreign Aid: Lessons from Somaliland," Journal of Development Studies, Taylor & Francis Journals, vol. 48(4), pages 465-480, March.
    2. Marcus J. Kurtz, 2009. "The Social Foundations of Institutional Order: Reconsidering War and the “Resource Curse†in Third World State Building," Politics & Society, , vol. 37(4), pages 479-520, December.
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