This paper starts with the proposition that patterns of state formation are heavily influenced by sources of state revenue. It suggests that this proposition is valid in the context of western European history, and in the light of the contemporary experience of countries in the South. It investigates the extent to which the quality of governance in the South might improve if states were more dependent for their financial resources on domestic taxpayers. It considers the circumstances which might encourage states to negotiate over tax. The very different context for state formation in the South cautions against firm conclusions, but the paper highlights the potential importance of state relations with taxpayers as a route to improving governance.
This is a two-page summary of a paper which can be accessed in full on this page.
Moore, M. Revenues, State Formation, and the Quality of Governance in Developing Countries. Institute of Development Studies, Brighton, UK (2004) 2 pp. [Research Summary 2]
Research Summary 2, Revenues, State Formation, and the Quality of Governance in Developing Countries.