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Poverty

Financing for Development: World Bank's role in supporting tax and revenue mobilization reforms is critical

Rajul Awasthi's picture

Melissa Thomas, author of Govern like us, speaking at the World Bank recently raised a very interesting question: is our expectation that poor countries with limited resources can deliver high-quality governance unrealistic?

Can these countries provide the public goods and services that citizens demand and need, to be able to forge a strong social contract?

She compares the levels of revenue per capita in rich and poor countries and finds that in the poorest countries, levels of revenue per capita are so low that it would be years, or even decades, until they have enough to provide a decent level of public goods and services.

It is in that context that I thought of Sri Mulyani’s appeal during the Spring Meetings when she spoke of the need to clamp down on tax evasion and avoidance and boost the domestic resource mobilization (DRM) capacities of developing countries as a means of finding resources for financing development going forward.

How opinion leaders view the role of governance in development

Ravi Kumar's picture

Every year World Bank Group conducts country opinion surveys (COS) to better understand how its work is being perceived on the ground. These surveys help World Bank Group improve its operations, results, and bolster its engagement with countries.
 
These surveys also allow the Bank Group to get a sense of development priorities, and what kind of projects people think can contribute to poverty reduction and shared prosperity. We looked at these surveys to see how survey respondents view governance’s role in reducing poverty and whether they view governance as a development priority.
 
Survey respondents are opinion leaders who typically come from national and local governments, media, academia, the private sector and civil society. They are also from multilateral/bilateral agencies.
 
As you can see in the maps below, for example, in the 2014 survey, in Zimbabwe, 40% of respondents believed governance should be the top development priority and 34% of them believed that governance is the top contributor to poverty reduction.

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