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
Ten years of economic reforms in Cuba: the way forward
How successful have economic reforms been in Cuba? And what alternatives are there?
China: New Silk Road stir mixed reactions in Europe
Europeans are growing more wary of China, but still welcome many of its contributions.
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
Asia is booming – what are the implications?
Connectivity has become a buzzword today. It topped the agenda at the joint conference on trade, infrastructure and Europe–Asia relations, organized by NUPI and the MFA to mark ASEM day.
European Defence and Third Countries after Brexit
The UK’s departure from the European Union has given energy to the process towards ‘ever closer Union’ in the EU’s Common Security and Defence Policy (CSDP). Many policies and initiatives have been brought to the table in the aftermath of the referendum that created shock waves in Europe. This policy brief takes stock of the developments in European defence integration since the Brexit referendum in June 2016. Contrary to the dominant political and public debate about those developments, and the political optimism inside the EU, the brief identifies some key obstacles towards expanded European defence integration. With the UK’s exit from the EU, the ‘third country’ role in the CSDP will inevitably be altered, as one of the largest military powers in Europe will stand outside of the EU. For current third countries – like Norway and Iceland – this should lead to caution regarding immediate participation and a pragmatic approach to the developments. Energy and resources should not be invested before post-Brexit institutions and practices have been established.
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.
Russia’s New Asian Tilt: How Much Does Economy Matter?
The economic development of Russia’s Far East has been proclaimed a policy priority, to be facilitated by an ambitious turn or ‘pivot’ to Asia. This chapter assesses Russia’s economic reorientation towards Asia, offering an overview of the Far Eastern dimension of Russia’s economic relations with its major Asian partners in 2010–16, based on analysis of the dynamics of investment, trade relations and business climate development. Since 2014, trade with Asian partners has stagnated, while foreign investment (except for Chinese) has remained negligible. Moreover, trade is still mainly oriented towards markets in European Russia. The chapter concludes that Russia’s pivot to Asia has not yet become an economic pivot—and that such a turn would be more easily attainable under a non-sanctions regime.
A more connected Asia – new possibilities in Europe?
Trade and infrastructure projects are booming in Asia. How may relations between countries in Asia and Europe change?
Globalization of intellectual property rights
Recent decades have witnessed a strong globalization process. This has been so for international trade and international capital markets, but also in the field of Intellectual Property Rights (IPRs). IPRs were formerly in the domains of nation states. International treaties have dictated convergence in IPR institutions across the world. This paper gives a short overview of these developments. Incentives for IPRs are stronger for more innovative countries. Therefore, innovative countries traditionally had stronger IPR than less innovative countries. A negotiated global treatment (like the TRIPS agreement) is likely to be a compromise between the needs in innovative and less innovative countries. Such agreements may therefore be complemented with additional agreements among innovative countries. The European Patent Office (EPO), and the planned European unitary patent are examples. IPRs are also incorporated into new preferential trade agreements. Many believe that this trend will result in convergence of stronger IPRs across countries, to the benefit of innovative countries, but at the cost of less innovative countries.