And that is precisely one of the main topics that we discussed at the International Transport Forum in Leipzig during a session on Integrating Transport Networks for Sustainable Growth and Development. The panel also included Morocco’s Vice-Minister of Transport; the Head of Transport from the Latin America Development Bank (CAF), and the CEO and Chairman of the Management Board of Deutsche Bahn AG.
The first unexpected development happened when the moderator showed up with a fifteen-minute delay, having been trapped… in a Deutsche Bahn train stopped on the tracks between Berlin and Leipzig following an unfortunate encounter between a bulldozer and a catenary cable. To be fair, the incident had little to do with the quality of the railway service and was quickly resolved. That is what resilient transport is about.
Would you be more willing to pay taxes if you didn’t have to spend hours doing it, or if you see that money being used in the right way? Well, you are not alone.
Armenians, like people around the world, feel the same. According to the recently conducted Tax Perception Survey in the country, easier tax compliance and more visible link between taxes paid and public services received was found to be particularly important.
Between 66 percent and 75 percent of respondents said they would be more willing to pay more taxes if the procedures were easy and less time-consuming, if they saw more useful social and other public services, or if they saw less corruption.
Over 95 percent of respondents felt the tax burden is heavy or very heavy, while almost 50 percent reported that evading tax payments was not justified under any circumstances.
About 57 percent noted that high taxes or desperate financial situations were the main reasons for avoiding or evading tax payments.
The data unveiled by the latest Tax Perception Survey, carried out with USAID support and World Bank Group technical assistance covered around 1,500 households and 400 business taxpayers. The analysis strengthened the need to modernize the tax system, which has remained a major challenge for Armenia. Despite Armenia’s ranking as 37th in Doing Business, the taxation system, at 103rd on the list, still requires a lot of work.
To be sure, there have been some improvements to the system in the past few years. They include the introduction of electronic filing of tax returns, e-government applications, risk-based audit principles, and taxpayer service centers and appeal system. These achievements contributed to increasing the tax to GDP ratio from 19.5 percent in 2010 to 22.8 percent in 2013.
But much remains to be done to further streamline and simplify tax procedures, modernize the tax administration, and enact a tax code.
I have just returned from London where I attended the seventh meeting of the Friends of Yemen (FoY) group. This group was created in 2010 to help support Yemen through a period of crisis. It is co-chaired by the United Kingdom, Saudi Arabia and Yemen itself, with 36 other members, including the United States and Russia.
At the meeting, members discussed how the international community would support Yemen to complete its political transition toward federalism, implement the outcome of its national dialogue—and lay the foundations for a democratic modern civil state.
Almost two years ago Program for Results (PforR), the newest financing instrument for World Bank operations, was introduced to great expectations within the Bank and the international development community.
Construction of the Quito Metro
Like seismic waves rippling outward after a tectonic shift, reverberations are roiling the economic-policy landscape after the U.S. launch of the groundbreaking new analysis by Thomas Piketty, the scholar from the Paris School of Economics whose landmark tome – “Capital in the Twenty-First Century” – has newly jolted the economics profession.
Any Washingtonian or World Bank Group staffer who somehow missed the news of Piketty’s celebrated series of speeches and seminars last week – in Washington, New York and Boston – received an unmistakable signal this week about what an important intellectual breakthrough Piketty has achieved. President Jim Yong Kim on Tuesday cited Piketty while putting the issue of economic inequality at the top of his list of priorities during his review of the Spring Meetings of the Bank and the International Monetary Fund. Noting that he was already about halfway through reading Piketty’s “Capital,” President Kim sent a clear message that the skewed global distribution of wealth, as analyzed by Piketty and emphasized by many officials at the Bank and Fund's semiannual conference, should be top-of-mind for policy-watchers at the Bank and beyond – indeed, at every institution that hopes to promote shared prosperity.
Piketty’s scholarship is now receiving widespread acclaim as a landmark in economic analysis, and is being recognized both for its “exhaustive fact-based research” and its sweeping historical perspective. More of a patient dissection of hard data than a political roadmap, Piketty’s book has quickly become the subject of multiple praiseworthy reviews, notably in the New York Times and the Financial Times. One usually level-headed Bloomberg View analyst, recoiling from the “rapturous reception” accorded to the book, may have gone slightly overboard this week in asserting that Piketty's insights had been greeted by American liberals with “erotic intensity.”
Predictably, Piketty's book has also quickly become the target – “Piketty Revives [Karl] Marx,” blared a Wall Street Journal headline; “Marx Rises Again,” warned the New York Times’ lonely conservative scold – of the whack-a-mole ideological purists in laissez-faire Op-Ed columns, who forever seem tempted to equate modern-day liberalism with long-gone Leninism. Eager to publish denunciations of any idea, however modest, that might justify (heaven forfend) tax increases on stratospheric income-earners and the top-fraction-of-the-One Percent, the free-market fundamentalists on the Wall Street Journal’s editorial board – unabashed cheerleaders for plutocracy – have opened up one of their trademark barrages via their Op-Ed columns (“This book is less a work of economic analysis than a bizarre ideological screed”; “The professor ought to read ‘Animal Farm’ and ‘Darkness at Noon’ ”). The Journal's jihad clearly aims to demean or discredit anyone who might flirt with such Piketty-style notions as restoring greater progressivity to the tax code. (Egad: Progressive taxation? Next stop: Bolshevism.)
The 2004 Indian Ocean Tsunami – Triggering engagement in Disaster Risk Management (DRM)
In 2004 December, Sri Lanka faced the worst disaster in its history - the Indian Ocean Tsunami. More than 35,000 people lost their lives and around 5,000 people went missing. At the time of the Tsunami, Sri Lanka did not have a proper legal and institutional mechanism to manage disaster risk. In the aftermath of the catastrophe, the Government made very serious efforts to establish a mechanism to avoid dramatic loss of life in future disaster events.
Subsequently, the Disaster Management Act was passed and the National Council for Disaster Management, chaired by the President, was established. A Ministry of Disaster Management (MoDM) was created and charged with the disaster risk management (DRM) portfolio and the Disaster Management Centre (DMC) was established July 2005 to implement DRM programs across the country.
With these mechanisms in place, the Government began strengthening disaster preparedness, especially for tsunamis. Three pieces were put in place including: i) development of a tsunami early warning system; ii) implementation of awareness raising programs, from the grassroots to national levels; and, iii) regular evacuation drills were conducted in all coastal villages. The system has proven successful as the DMC issued Tsunami evacuation warnings in September 2007 and April 2014, which resulted in the safe evacuation of coastal communities.
These are some of the views and reports relevant to our readers that caught our attention this week.
The Transformative Impact of Data and Communication on Governance: Part 3
How do digital technologies affect governance in areas of limited statehood – places and circumstances characterized by the absence of state provisioning of public goods and the enforcement of binding rules with a monopoly of legitimate force? In the first post in this series I introduced the limited statehood concept and then described the tremendous growth in mobile telephony, GIS, and other technologies in the developing world. In the second post I offered examples of the use of ICT in initiatives intended to fill at least some of the governance vacuum created by limited statehood. With mobile phones, for example, farmers are informed of market conditions, have access to liquidity through M-Pesa and similar mobile money platforms.
Cashing in: why mobile banking is good for people and profit
Using digital finance to tackle development problems can improves lives, and offer innovative companies handsome rewards. Whether it is lack of access to water, energy or education, development professionals are well versed in the plethora of challenges facing billions of people. The traditional approach to solving these problems has been to think big – in terms of the millennium development goals, government aid programmes, or huge fundraising campaigns. But there are dozens of startups and larger companies with innovative ideas who are approaching these challenges in new ways using digital finance.