Event

The 'fiscal contract' assumes that citizens pay taxes in exchange for public services and the ability to influence public policy. The idea is that a government's reliance on tax revenue encourages it to prioritize the well-being of its citizens, while taxpayers are motivated to hold their government accountable. This suggests that negotiations over taxation between citizens and the government are key to developing a social contract, forming the foundation for state authority and democracy eventually.

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This view of a state-citizen social contract, that is based on a presumed Western historical experience may not fully capture the diverse nature of state-society relations elsewhere. Fiscal contract theory is heavily influenced by the history of revenue bargaining among elites in 17th and 18th century England, raising questions about its universal applicability. This leads us to ask: Is there truly such a thing as a fiscal contract? Could other factors beyond fiscal exchange play a more important role in shaping social contracts in certain societies? What limitations does the fiscal contract model have, and what implications does this have for development policies in different contexts?

Our own research (NUPI) in collaboration with our local partners in fragile countries like Mali and Liberia has made us less certain about the central role of taxation and the fiscal contract lens in understanding state-society relations. While a fiscal contract might still develop in these countries, it is likely influenced by numerous factors beyond taxation, depending on the specific context and historical experiences. In fragile states, multiple and overlapping social contracts might exist simultaneously at different levels, involving both state and non-state actors competing for influence over various societal groups.

This seminar will explore these questions and challenge conventional understandings of the fiscal contract.

The seminar will be held on 3 September at 1.00 pm (CET) at NUPI in Oslo. Expected duration is maximum 1,5 hours. It will be streamed on NUPI's YouTube channel (no registration necessary if you only wish to watch the stream):