Taxation, Accountability, and Cash Transfers Breaking the Resource Curse

Why is governance in resource-rich countries so poor This paper argues that it is because governments in these countries do not rely on taxation, which is an important instrument for citizens to hold their governments accountable. Using a game-theoretic model, the authors show that the combination o...

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Bibliographic Details
Main Author: Devarajan, Shantayanan
Other Authors: Do, Quy-Toan
Format: eBook
Language:English
Published: Washington, D.C The World Bank 2021
Subjects:
Online Access:
Collection: World Bank E-Library Archive - Collection details see MPG.ReNa
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100 1 |a Devarajan, Shantayanan 
245 0 0 |a Taxation, Accountability, and Cash Transfers  |h Elektronische Ressource  |b Breaking the Resource Curse  |c Shantayanan Devarajan 
260 |a Washington, D.C  |b The World Bank  |c 2021 
300 |a 27 pages 
653 |a Macroeconomics and Economic Growth 
653 |a Taxation and Subsidies 
653 |a Credible Commitment 
653 |a Public Sector Development 
653 |a Game Theory 
653 |a Natural Resource Curse 
653 |a Poverty Reduction 
653 |a Accountability 
653 |a Cash Transfers 
653 |a Taxation 
653 |a Services and Transfers To Poor 
700 1 |a Do, Quy-Toan 
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082 0 |a 330 
520 |a Why is governance in resource-rich countries so poor This paper argues that it is because governments in these countries do not rely on taxation, which is an important instrument for citizens to hold their governments accountable. Using a game-theoretic model, the authors show that the combination of low taxes and weak governance can be an equilibrium in an economy with sizeable mineral revenues. As income from natural resources ultimately declines, replacing it with tax revenues may require governments to give control of these proceeds to citizens, in the form of cash transfers say, as a credible commitment to accountability, thereby breaking the country out of its resource curse