Domestic Resource Mobilization for Poverty Reduction in East Africa - Lessons for Tax Policy and Administration (AfDB)

25 November 2011
Content from a Premium Partner
African Development Bank (Abidjan)
press release

Successful implementation of Poverty Reduction Strategy Papers (PRSPs) and National Development Plans (NDPs) depends on effective resource mobilisation and utilisation.

In recent years, development aid has been crucial in filling the financing gap. However, on-going global financial uncertainty is likely to lead to reduced aid and unpredictable private capital flows to Africa.

Continued stability in PRSP or NDP financing will thus depend on a country's ability to strengthen their domestic resource mobilisation (DRM) efforts. This is especially pertinent in a region like East Africa where countries have historically relied heavily on development aid to finance their public spending.

This flagship report is the outcome of a collaborative study conducted by the African Development Bank in partnership with the African Tax Administration Forum and East African Community Secretariat with financial support from the Korea-Africa Fund for Economic Cooperation.

The study has been conducted over the last two years and also complements the theme of the Bank's 2010 African Economic Outlook on 'Public Resource Mobilisation and Aid in Africa'.

The aim of the study was, through case studies, to draw lessons for tax policy and administration in order to enhance DRM in East Africa. The case studies covered the five East African Community Partner States (Kenya, Tanzania, Uganda, Rwanda and Burundi) and two non-members (South Africa and South Korea).

South Africa was chosen as a success story from within the African continent, while South Korea was selected as it has been able to mobilise significant domestic resources to support rapid structural and economic transformation since the 1960s.

We expect that the findings of this report will be used in the East African region, as well as in other countries across Africa, to guide the appropriate reforms and enhance a country's DRM capabilities. This report is also expected to contribute to harmonisation of tax regimes and thus support the wider regional integration agenda of East African partner states.

Read the original article on African Development Bank (AfDB).

Tagged:
Copyright © 2011 African Development Bank. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 600 reports a day from more than 110 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.