The challenges of illicit economies and financial flows
– Illicit economies pitch the advantages of borderless transport, communications and financial flows against legal systems that remain bound by the confines of the Westphalian nation state. What to do?
Ethiopia: A Political Economy Analysis
This report provides an overview and analysis of some key issues pertaining to the political economy of Ethiopia in a historical perspective. The continuous rule of the Ethiopian People’s Revolutionary Democratic Front (EPRDF) since 1991 has advanced a revolutionary democracy founded on the idea that the EPRDF itself should be the vanguard party both representing and leading the people. This form of central dirigisme has produced a developmental state with authoritarian features and opaque boundaries between the party and the state system. The strong and assertive party, having its clear vision of the developmental objectives and means, has produced a self-determined state apparatus that seldom yields to internal or international pressure. It has also produced impressive economic results over the last decade and a half, especially in the central and urban areas, and now aspires to become a middle-income country by 2025. Against this economic performance, there are critical concerns regarding democracy, human rights, uneven distribution and growing inequalities. The political space has gradually narrowed since the contentious 2005-elections, and there are currently no opposition parties with parliamentary representation. The invocation of a ten months state of emergency following the popular anti-government protests in 2015 and 2016, is just one expression of how human rights are being truncated, the lack of an open political space and the regime’s authoritarian features. Despite this, international actors maintain their relations to Ethiopia and continue to provide development assistance. This is partly due to the government’s performance in other domestic areas, but also a recognition of Ethiopia’s important regional role in providing stability in the Horn of Africa. The government has known to capitalize on the international actors’ need for a stable partner in the region, which has provided leeway for both its domestic and international affairs. It is thus unlikely that Ethiopia would be challenged by any other regional state or combination of states. Nor is it expected that any of its international partners would challenge Ethiopia, for instance by putting conditions pertaining to domestic political and human rights issues before the concern for regional stability. Any challenges to the regime and political stability are more likely to emerge from within – whether in the form of further popular political unrest, or disagreements within the EPRDF government or its coalition parties.
The New Politics of Development: Fragility, Taxation and State-building
The TaxCapDev Research Network invites you to this two-day conference on taxation and state building in fragile states.
REPORT: Building tax systems in fragile states
New report from the TaxCapDev network recommends nine entry points for Norwegian support to taxation in fragile states.
Building tax systems in fragile states. Challenges, achievements and policy recommendations
This report systematises and analyses existing knowledge on taxation in fragile states. Efforts to support domestic revenue mobilisation in conflict situations require a different approach and other means than in the more stable developing countries. On that basis, the study discusses possible entry points for Norwegian support to domestic revenue mobilisation in ways that may contribute to strengthen state-building and improve government legitimacy. Complexity, limited experience and security concerns suggest that one should be cautious to adopt bilateral technical assistance programmes of the kind implemented in other developing countries. Instead, the study argues in favour of engagement via multilateral institutions, including multi-donor trust funds and other forms of pooled resources. The report recommends nine entry points for Norwegian support to taxation in fragile states: 1. Do no harm 2. Safeguard donor coordination, but ensure a certain humility 3. Support customs administration 4. Capacitate management and taxation of natural resources 5. Support the United Nations Tax Committee 6. Improve taxpayer-tax administration relations 7. Remember the sub-national tax system 8. Support civil based organisations 9. Develop research capacity
Book launch: Perspectives on international taxation and capital flight from Africa
- How does the international tax system affect domestic revenue systems in Africa? New book from TaxCapDev Network launched in Norway
Everyday sovereignty: International experts, brokers and local ownership in peacebuilding Liberia
The present article investigates how sovereignty is performed, enacted and constructed in an everyday setting. Based on fieldwork and interviews with international embedded experts about the elusive meaning of ‘local ownership’, we argue that while sovereignty may, indeed, be a model according to which the international community ‘constructs’ rogue or failed polities in ‘faraway’ places, this view overlooks that these places are still spaces in which contestations over spheres of authority take place every day, and thus also spaces in which sovereignty is constructed and reconstructed on a daily basis. Local ownership, then, becomes our starting point for tracing the processes of the everyday enactment of sovereignty. We make the case that sovereignty should not be reified, but instead be studied in its quotidian and dynamic production, involving the multiplicity of actors reflecting the active production of the state beyond its presumptive existence as a homogeneously organized, institutionalized and largely centralized bureaucracy.
Tanzania: A Political Economy Analysis
This report provides a comprehensive political economy analysis of contemporary Tanzania. Focusing on developments since the election of John Magufuli as President, it traces the evolution of the country´s political economy. Three main developments are emphasized. First, significant efforts have been made at addressing corruption, reforming public service practice, and maximizing public revenues. Second, there has been a clear shift towards a state-led model of economic development. This reconfiguration is unfolding in an increasingly competitive political environment and in the context of long-standing symbiotic relationships between politics and business. Third, there has been an increasingly restrictive approach towards civil society. Representatives of the public have been arrested and detained, and open political gatherings have been banned. The potential impact of these changes on the political settlement are complex. Factionalism within the CCM in recent years have been characterized by repeated cases of grand corruption. Still, there has been remarkable party cohesion, related to the fact that the factions belong to a narrow elite, which with ultimately has shared interests. Effective state-led development faces several challenges. Political capacity to direct long-term developmental change has been challenged by the development of factions within the CCM. Moreover, there are limits to the state’s capacity to formulate and implement policy. Uncertainty over public finances, particularly regarding international commercial borrowing, will, in the short term at least, stymie efforts to make the public service more effective. The greater political challenge is that posed by CHADEMA. With the 2015 elections, it consolidated itself as the leading political opposition in mainland Tanzania, with stable leadership and a solid organization in much of the country. CHADEMA´s relationships with Tanzanian private-sector interests leave its supporters open to targeted actions by tax and regulatory authorities. The state´s repressive approach towards civil society reflects the level of threat perceived by the ruling elite. External issues – like shifting relationships with donors, the emergence of new international allies and financiers, and security threats from transnational groups – are more tangential to the future direction of the Tanzanian state. Their impact will depend on trajectories in the areas of political and administrative capacity, relations between capital and the state, and the levels of political and civic organization beyond the party and the state. Dialogue with development partners has remained generally poor, a decline that set in some years ago. Like other countries in the region, Tanzania is increasingly attracting investment and public debt finance from China, from emerging powers like Turkey, and from others with an investment interest in Tanzania, such as the Gulf states.
Rival priorities in the Sahel – finding the balance between security and development
The G5 Sahel initiative goes some way to make up for the lack of supranational coordination in the troubled Sahel region. If moulded in the interests of development, it could bring about positive change. But the initiative risks becoming yet another excuse to get more ‘boots on the ground’, if external stakeholders place too much emphasis on fighting terror and stopping migration.
Working Paper: Comparing the EU’s Output Effectiveness in the Cases of Afghanistan, Iraq and Mali
This part of the overall report (Deliverable 7.1) on the EU’s crisis response in Afghanistan, Iraq and Mali compares the findings of three comprehensive cases-studies. The analytical focus is on the output dimension of EU policy-making that is the output of decision-making of the policy-making machinery in Brussels. Thus, the analysis is confined to the choices and decisions made regarding the EU’s problem definitions, policy goals, strategies and instruments – both on a strategic and operational level; thus policy implementation or impact will be analysed as next steps in following project reports (D 7.2, 7.3, and 7.4).