Enhancing Domestic Resource Mobilization for Effective Development. The Role of Donors.
This paper complements five country studies — Burundi, Cameroon, Ethiopia, Tanzania, and Uganda — on domestic resource mobilization (DRM) in sub-Saharan Africa and is part of the output of a research project on DRM led by The North-South Institute, in partnership with the African Development Bank, the African Economic Research Consortium, the Canadian International Development Agency, the International Development Research Centre, and the United Kingdom’s Department for International Development. Taxation is a key element of public-sector DRM, and there are growing concerns that reliance on external resources (e.g., aid and resource rents) confounds efforts to mobilize more resources domestically, creates perverse incentives, and reduces the likelihood of the emergence of a fiscal contract between the state and citizens. However, DRM also includes savings mobilization and intermediation.
North-South Institute, Ottawa, Canada, 35 pp.