Political Institutions, State Building, and Tax Capacity
Author | : Vitor Gaspar |
Publisher | : International Monetary Fund |
Total Pages | : 33 |
Release | : 2016-12-02 |
ISBN-10 | : 9781475558142 |
ISBN-13 | : 1475558147 |
Rating | : 4/5 (147 Downloads) |
Download or read book Political Institutions, State Building, and Tax Capacity written by Vitor Gaspar and published by International Monetary Fund. This book was released on 2016-12-02 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: An empirical finding by Gaspar, Jaramillo and Wingender (2016) shows that once countries cross a tax-to-GDP threshold of around 123⁄4 percent, real GDP per capita increases sharply and in a sustained manner over the following decade. In this paper, we attempt via four case studies—Spain, China, Colombia, and Nigeria—to illustrate that the improvements in tax capacity have been part of a deeper process of state capacity building. We discuss the political conditions that supported tax capacity building, highlighting three important political ingredients: constitutive institutions, inclusive politics and credible leadership.