Tax capacity in fragile states: Trends, challenges, and policy options
This brief summarises research on tax revenue trends and key challenges in mobilising tax revenue in fragile states and explores avenues for policy reform.
Authors
Anders Jensen
Associate Professor, Harvard University
Jonathan Weigel
Assistant Professor, London School of Economics and Political Science (LSE)
Janine Aguilera Mesa
Evaluation and Policy Impact Manager, International Growth Centre
Hassan Gali
Policy Economist
Sarah Logan
Researcher
Camilla Sacchetto
Reseracher, International Growth Centre-
Eissa et al Policy brief November 2022
PDF document • 391.59 KB
- Achieving greater revenue mobilisation can be an effective strategy for countries to break out of fragility.
- Evidence suggests that tax revenue has a larger impact on fragility dynamics than non-tax revenue.
- This brief summarises research on tax revenue trends and key challenges in mobilising tax revenue in fragile states and explores avenues for policy reform.
- Given the complexity of raising tax capacity in fragile settings, there is no one-size-fits-all solution but localised approaches that combine administrative and tax policy reform with appropriate sequencing can result in positive, sustainable results.