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Tax one- get one free? Is cash-on-delivery aid the way to enable domestic resource mobilisation?@nleecgd @cgdev makes the proposal https://www.cgdev.org/publication/domestic-resource-mobilization-low-income-countries-proposal-surge-multilateral-support …. @MickICTD @WilsonPrichard see the problems http://www.ictd.ac/blog/cash-on-delivery-for-domestic-resource-mobilisation-three-key-challenges/ …
The case for: obstacles to tax reform in low income countries often more political than technical or financial. Project-based technical assistance gets limited results, payment by results would support determined government action.
The challenges: (1) Measurement & monitoring (all the problems of tax targeting https://www.ids.ac.uk/opinion/the-sustainable-development-goals-reject-tax-targeting …) (2) Driving coercion (3) Show me the money! requires c $2.5 bn? Much more than current or targeted aid for DRM http://devinit.org/post/oda-for-domestic-revenue-mobilisation/ … @devinitorgpic.twitter.com/Gl3Pz7FuMi
I wish there'd be much more of an effort on the DRM side to take a broader perspective of what can drive the widening of the tax base, starting with a better understanding of the economic structure, the political economy & their political implications.
Agree Jonathan. Need to go beyond technical tax assistance to political economy research. Lots of interest in this here at CGD.
Thanks Maya and thanks Mick and Wilson for your great analysis of implementation challenges of my proposal. Welcome comments from others!
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