Tax and Governance

In recent years, political scientists have suggested that increased taxation can spur more accountable governance. If citizens are made to pay taxes, they may feel more ownership over public resources, and demand things of their government in return. If taxpayers are unhappy with how their taxes are collected or spent, they may make demands for more accountability or even democracy. This argument has often been illustrated with the often-repeated phrase “no taxation without representation.” So, will raising taxes also lead to more accountable governance in developing countries today? What kinds of taxes mobilise people? How can they best engage to make their demands for reform heard? Under what conditions can state-taxpayer bargaining lead to more fair, transparent, and accountable governance?

External Resources

Natural Resource Governance Institute

An important centre for research into the governance of the natural resource industry.

Extractive Industries Transparency Initiative

An inter-governmental initiative under which natural resource exporting governments and companies commit to disclosing information about their natural resource revenues and payments.

Database of civil society organisations working on tax

An attempt by the International Budget Partnership to map all civil society organisations working on tax issues.

Transparency and Accountability Initiative

A collective of large private donors that supports practical measures to improve the transparency and accountability of government operations, especially financial operations.

Resource Governance Index

Provides a detailed assessment of the quality of governance of the natural resource sector for all significant producing countries.