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Tax challenges facing developing countries

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  • Bird, Richard M.

    (National Institute of Public Finance and Policy)

Abstract

Most developing countries continue to face serious problems in developing adequate and responsive tax systems. This paper reviews the three principal ways in which developing countries may expand and improve their taxation systems - base-broadening, rate reduction, and administrative improvement - in the context of the political economy of tax reform. While each of these paths to reform is essential, in the end what 50 years of experience tells us is that improving the transparency and understanding with which fiscal issues are discussed by all relevant players, both within and outside government, is the really essential ingredient to developing viable and sustainable tax systems in developing countries. Such institution-building activities are not a boring bit of infrastructure to be brushed aside in order to get into the real business of making this or that substantive reform in tax policy or administration: they are the "real business" with which serious tax reformers in any country should be most concerned.[IIB WP]
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  • Bird, Richard M., 2008. "Tax challenges facing developing countries," Working Papers 08/als1, National Institute of Public Finance and Policy.
    • Handle: RePEc:npf:wpaper:08/als1
    Note: Annual Public Lecture Series of the National Institute of Public Finance and Policy
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    2. Ahrens, Joachim & Schweickert, Rainer & Zenker, Juliane, 2011. "Varieties of capitalism, governance and government spending: A cross-section analysis," Kiel Working Papers 1726, Kiel Institute for the World Economy (IfW Kiel).
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    5. Kaplanoglou, Georgia & Rapanos, Vassilis T., 2011. "The Greek fiscal crisis and the role of fiscal governance," LSE Research Online Documents on Economics 36432, London School of Economics and Political Science, LSE Library.
    6. Ada Jansen & Elizabeth Stoltz & Derek Yu, 2012. "Improving the targeting of zero-rated basic foodstuffs under value added tax (VAT) in South Africa - An exploratory analysis," Working Papers 07/2012, Stellenbosch University, Department of Economics.
    7. Levin, Mark (Левин, Марк) & Matrosova, Kseniya (Матросова, Ксения), 2017. "Development and Analysis of Economic Models of Innovation Incentives [Разработка И Исследование Экономических Моделей Стимулирования Инновационных Процессов]," Working Papers 061713, Russian Presidential Academy of National Economy and Public Administration.
    8. Temitope J. Laniran, 2017. "Fiscal regimes in resource dependent African states: a political economy game," Working Papers of the African Governance and Development Institute. 17/037, African Governance and Development Institute..
    9. Juanita Villaveces, 2014. "Is [Rural] Property Tax Relevant?," Documentos de Trabajo 11527, Universidad del Rosario.
    10. Odd-Helge Fjeldstad, 2013. "Taxation and Development: a Review of Donor Support to Strengthen Tax Systems in Developing Countries," WIDER Working Paper Series wp-2013-010, World Institute for Development Economic Research (UNU-WIDER).
    11. Temitope J. Laniran, 2017. "Fiscal regimes in resource dependent African states: a political economy game," Research Africa Network Working Papers 17/037, Research Africa Network (RAN).
    12. Mohammed Abdullahi Umar & Chek Derashid & Idawati Ibrahim, 2017. "What Is Wrong With the Fiscal Social Contract of Taxation in Developing Countries? A Dialogue With Self-Employed Business Owners in Nigeria," SAGE Open, , vol. 7(4), pages 21582440177, December.
    13. Sokolovskyi, Dmytro, 2018. "Factors for the formation of inefficient states when using tax incentive regimes," MPRA Paper 89141, University Library of Munich, Germany.
    14. Vaqar Ahmed & Cathal O'Donoghue, 2009. "Redistributive Effect of Personal Income Taxation in Pakistan," Working Papers 0143, National University of Ireland Galway, Department of Economics, revised 2009.
    15. Azka Amin & Yan Chen & Shaoan Huang, 2018. "Personal Income Tax and Economic Growth: A Comparative Study Between China and Pakistan," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 6(1), pages 65-73, March.
    16. Joachim Ahrens & Rainer Schweickert & Juliane Zenker, 2015. "Varieties Of Capitalism And Government Spending In Developed And Developing Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 40(1), pages 113-136, March.
    17. Richard M. Bird, 2008. "The BBLR Approach to tax Reform in Emerging Countries," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0804, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    18. Olusegun Ayodele Akanbi, 2019. "State Institutions and Tax Capacity: An Empirical Investigation of Causality," IMF Working Papers 2019/177, International Monetary Fund.
    19. repec:idq:ictduk:13681 is not listed on IDEAS
    20. Temitope J. Laniran & Damilola Adeleke, 2024. "Does natural resource hinder, taxation capacity and accountability? A case of selected oil abundant developing countries," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 26(2), pages 499-520, August.
    21. Imam Patrick Amir & Jacobs Davina, 2014. "Effect of Corruption on Tax Revenues in the Middle East," Review of Middle East Economics and Finance, De Gruyter, vol. 10(1), pages 1-24, April.
    22. Belal Fallah, 2014. "The Pros and Cons of Formalizing Informal MSES in the Palestinian Economy," Working Papers 893, Economic Research Forum, revised Dec 2014.
    23. Le, Tuan Minh & Moreno-Dodson, Blanca & Bayraktar, Nihal, 2012. "Tax capacity and tax effort : extended cross-country analysis from 1994 to 2009," Policy Research Working Paper Series 6252, The World Bank.
    24. Fjeldstad, Odd-Helge, 2013. "Taxation and Development : A Review of Donor Support to Strengthen Tax Systems in Developing Countries," WIDER Working Paper Series 010, World Institute for Development Economic Research (UNU-WIDER).

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    JEL classification:

    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

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