Taxation, developmental state capacity and poverty reduction

Abstract

Di John J. Taxation, developmental state capacity and poverty reduction Int J Soc Welfare 2011: 20: 270–279 © 2011 United Nations Research Institute for Social Development (UNRISD), International Journal of Social Welfare © 2011 Blackwell Publishing Ltd and the International Journal of Social Welfare. This article argues that policy instruments in taxation are likely to be more effective when one views taxation not only in terms of administrative capacity, but also when tax is viewed in wider developmental processes. Much of the literature and policy on taxation explores how to improve taxation in terms of administrative capacity without examining what policies are needed to improve the incentives of taxpayers to comply. The article provides examples of how tax reform can be more usefully employed when linked to explicit production strategies. It also argues that the success of improved tax collection needs to be assessed, not simply in terms of revenue increases, but also how these increases affect distributional outcomes and political stability.

A bibliometric analysis on poverty alleviation

“…Stream 5 displays the necessity of good governance (Grindle, 2004; Lü, 2015; Hannan, 2014; Kwon and Kim, 2014; Mbaku, 2014; Dijkstra, 2013; Jones and Presler‐Marshall, 2012; Hickey, 2012; Ronderos, 2011; Moser, 2008; Hyden, 2007; Dijkstra, 2004; Shepherd, 2000; De Janvry et al , 1991; Nieto‐Aleman et al , 2019; Wietzke, 2019) and government policies to eliminate poverty (Crook, 2003; Cornwall and Brock, 2005; Béné et al , 2016; Linneker and Wills, 2016; Kao et al , 2016; Bekele and Kjosavik, 2016; Anderson et al , 2015; Litschig and Morrison, 2013; Gowri and Ramanaiah, 2011; Di John, 2011; McKinley, 2008; Thorpe et al , 2008; Henderson et al , 2007; Yankson, 2007; Skae and Barclay, 2007; Grimm, 2005; Thorpe et al , 2004; Desai and Namboodiri, 1998; Toye and Jackson, 1996; Jouini et al , 2018; Wang and Hu, 2018).…”

Transitioning to No Poverty

“…All efforts of the international community to support domestic resource mobilization at the technical level are-sooner or later-confronted with the fact that tax is deeply political. The collection of tax not only requires substantial administrative capacity, but more importantly, requires a state to be considered legitimate since the vast majority of tax is collected when there is a high level of voluntary compliance (Di John 2011. Changes in a country's tax policy and administration are largely driven by domestic economics, politics, and institutions (Di John 2010;Fjeldstad and Heggstad 2011;Fjeldstad and Moore 2008).…”

Investigating the dynamics of tax evasion and revenue leakage in somali customs

“…In the broader context of the region, the necessity of raising internal funds has been emphasized as a pivotal strategy to reduce reliance on foreign aid and to create fiscal space essential for national development [ 7 ]. However, the effective mobilization of these revenues is continually undermined by widespread tax evasion and avoidance, coupled with inadequate enforcement of tax laws and prevalent tax corruption [ 8 ]. In Somalia, as in many fragile states, the issue of tax evasion is not limited to lost revenue; it significantly affects economic efficiency, income distribution, and the legitimacy of the government [ 9 ].…”