Development, institutions and class

Ruccio, David F.

doi:10.1017/s1744137411000269

Cited by 5 publications

(2 citation statements)

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“…Without regard to historical experience and the process of the formation of the State, the structural changes of the late twentieth century, undertaken at the request of international organizations, increased the difficulty of tax collection, the fragility of state regulatory functions, and decreased the capacity to manage resources and provide basic public services, negatively affecting its legitimacy; and influenced the reduction of state spending, particularly social spending (Clapham 2003). The policy of low direct taxes, the dismantling of tariffs and the "tragedy" of having to give tax incentives for foreign investment, has reduced their revenue capacity, impeding their ability to undertake policies of development, and has not contributed to State building ( Tanzi and Zee In order to define institutional quality and to construct institutional indicators, neoinstitutionalist literature identifies institutions that encourage growth with the way in which the participants interact in a market with low transaction costs and the kind of regulations and organizational structure that favours this interaction, and with the belief in capitalist values (Ruccio 2011). It also takes as reference the formal institutions whose effectivity largely depends on the support of informal institutions (norms, codes of conducts and cultural factors), of utmost importance in traditional societies.…”

Section: Institutional Capacity and Developmentmentioning

confidence: 99%

Taxation and Development. A Capacities Approach

Castellano¹

2018

ASSRJ

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The principal objective of this paper is to show that taxation is a crucial element of good governance and the legitimacy of the State and of the citizen's commitment with politics, and, finally, of development. Assuming that "social heritage" as regards education, health and collective contributions largely explains differences in income at an international level, we investigate the relationships between State and society in terms of taxation and we conclude with the importance of the tax system in the formation of the state and in the adoption of development strategies. In this paper Sen's approach of capacities is adopted, emphasizing the constitutive role of institutions, and it is assumed that the latter must perform the function of development of human capabilities. In Sen's concept of development, Gross Domestic Product (GDP) growth is seen as a means of expanding the fundamental freedoms enjoyed by members of the society. These freedoms depend on social and economic institutions (health and education) and on political and human rights (freedom of political participation). In addition, it starts out from the idea that institutions, besides defining the framework of action of human beings in the social sphere, can shape their behaviour, by changes in values. In this sense, social policy must be placed at the same level as economic policy to ensure a balanced and sustained development. Therefore the tax system is shaped as an institution fundamental to the definition of State capacity and of development policy, and as a key element of institutional quality, because it generates the resources to create institutions of a high standard, and contributes to the establishment of a closer relationship between the State and the citizen. The Political Economy of taxation provides a good interpretative framework for the creation of the State in undeveloped countries to propose a fiscal agenda for development. The paper is organized as follows. After a brief introduction, Section 2 addresses the mounting literature on State building. Section 3 studies the relationship between state capacity and development. Finally, Section 4 proposes a tax reform for development.

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Section: Institutional Capacity and Developmentmentioning

confidence: 99%

Taxation and Development. A Capacities Approach

Castellano¹

2018

ASSRJ

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“…What few minor disagreements I have with them are probably not worth discussing in this article. Some others have accepted most of my substantive arguments, but coming from different methodological positions – Mwangi Kimenyi (2011) and Robbert Maseland (2011) from the orthodox position or David Ruccio (2011) from the Marxist position – they have some basic problems with my arguments. Kimenyi and Maseland take issue with my empirical methodology and Ruccio with my failure to engage in class analysis.…”

Section: Introductionmentioning

confidence: 99%