State Capabilities

The public sector plays a crucial part in growth-promoting investment. Unfortunately, less developed countries often feature states with poor revenue-raising capacity and inefficient procurement. The state also has an important role as a guarantor of security and contract enforcement to secure further investment. The IGC country teams have discovered the high research demand for these issues in our partner countries, to which the state capabilities programme responds.

For example, policymakers in Bihar emphasised the need for continuous improvements in law and order. The government of Pakistan has also underlined the importance of expanding the reach of taxation to agriculture and services sectors. The research programme will foster better understanding of what makes states effective in raising revenues, procuring goods and services, providing public goods and a sound legal system.