Strengthening Domestic Resource Mobilization: Moving from Theory to Practice in Low- and Middle-Income Countries
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This report presents an overview of current trends in tax policy, tax administration, and international taxation and provides a broad landscape of practical examples drawn from World Bank operations across Global Practices over the past several decades.1 As a starting point for a more comprehensive research agenda, it is intended to play two roles: to provide guidance to World Bank staff working on related tax issues and to trigger a wider external dialogue through a forthcoming flagship report addressing strategic aspects of taxation in greater depth (World Bank 2017).
Public spending has consistently played a key role in the economic growth and development of most low- and middle-income countries (LMICs) and continues to do so today. This report analyzes the status of government revenues and identifies policy and administrative steps that may help to mobilize domestic resources in LMICs with a view to helping to frame the strategic position of the World Bank at this particular time. The suggestions are meant to support the role of the Bank in the context of the Addis Tax Initiative and the Sustainable Development Goals 2030 as well as to facilitate the collection of tax and nontax revenue in order to provide LMICs with a stable and predictable fiscal environment.