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State‐Building Taxation for Developing Countries: Principles for Reform
Author(s) -
EverestPhillips Max
Publication year - 2010
Publication title -
development policy review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.671
H-Index - 61
eISSN - 1467-7679
pISSN - 0950-6764
DOI - 10.1111/j.1467-7679.2010.00475.x
Subject(s) - transparency (behavior) , accountability , politics , prosperity , state (computer science) , clarity , state building , sierra leone , tax revenue , revenue , public economics , developing country , economics , business , political science , public administration , economic growth , development economics , accounting , law , biochemistry , chemistry , algorithm , computer science
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.