Low-income countries are being called on to generate their own financial resources for development. One of the ways they can do that is through taxes. It’s being discussed at the Third International Conference on Financing for Development in Addis Ababa (July 13-16).
Britain’s Institute of Development Studies has issued a policy brief on Building Tax Capacity in Developing Countries. It says that “governments will be urged to tax more effectively” and donors will be called upon to help build the capacity to do so.
Professor Mick Moore, CEO of the International Center for Tax and Development and one of the authors of the brief, said, “I think there’s now a very widespread understanding that a lot of low income countries could probably raise more of their own money themselves. And many of them understand this. You know, we’ve had an era of what I call ‘big aid’ for quite a long time now. And I think it’s clear to most people in the world that that era of ‘big aid’ is going to draw to an end.”