By Katherine Baer, Sanjeev Gupta, Mario Pessoa
August 9, 2017
Version in Français (French)
A porter in the market in Kathmandu, Nepal: the country increased their tax revenues in recent years with the help of technical assistance (photo: Navesh Chitrakar/Newscom)
Fragile states face more obstacles to growth than most countries. Their per-capita GDP is less than half of most other low-income countries, and their economies are more volatile. Many are in conflict or going through a natural disaster, or just emerging from these. Our study is based on 39 countries, and since completed, the number of fragile states has increased to 43.
To grow, a country needs tax policies and tax administration, laws and institutions to formulate and execute a budget, and trained staff to implement fiscal policies, among other factors. Our preliminary results show that fragile states that have received technical assistance, also have improved their fiscal performance.