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Should we engage in development cooperation with countries that have a notoriously low tax ratio?

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  • von Haldenwang, Christian
  • Krause, Philipp
Abstract
Some countries fail to ensure that their citizens and businesses make an appropriate contribution to the financing of public tasks. In such cases one can think of a number of reasons for reducing development cooperation or even stopping it altogether. But not all countries with a low tax ratio automatically fall into this category. Development policy should analyze countries carefully. It should not, however, shrink from linking resource allocation to the strengthening of tax systems if a partner country consistently fails to make efforts to increase its own revenues.

Suggested Citation

  • von Haldenwang, Christian & Krause, Philipp, 2009. "Should we engage in development cooperation with countries that have a notoriously low tax ratio?," Briefing Papers 12/2009, German Institute of Development and Sustainability (IDOS).
    • Handle: RePEc:zbw:diebps:122009
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    File URL: https://www.econstor.eu/bitstream/10419/199643/1/die-bp-2009-12.pdf
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    Cited by:

    1. Ivanyna, Maksym & von Haldenwang, Christian, 2012. "A comparative view on the tax performance of developing countries: Regional patterns, non-tax revenue and governance," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 6, pages 1-44.

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