More effective tax systems

Developing a greater understanding of how governments can make better use of tax systems to achieve social and economic objectives.
Maasai women make, sell and display their bead work, Kenya, 2011. Photo: © Georgina Goodwin/World Bank,CC BY-NC-ND 2.0.

Recent years have seen an upsurge in interest in the role that domestic resource mobilisation can play in contributing to development as part of the financing for development agenda. ODI’s work explores the links between tax systems and social and economic development objectives.

In particular, we aim to bridge the international narrative on taxation and development with the realities of undertaking tax reform in poorer countries. Through high-quality applied research and practical insights, we provide technical assistance directly to governments to inform and influence policies, practices and public debate on building more effective tax systems.

ODI is partnering with the Institute of Fiscal Studies to deliver DFID’s Centre for Tax Analysis in Developing Countries (TAXDEV) programme in Uganda and Rwanda. We are also supporting governments in Côte d'Ivoire, Guinea, Liberia and Sierra Leone to collect a fair share of revenues from the extractive sector.

Key aims:

  • Understanding the ways in which governments can mobilise domestic resources in more sustainable and equitable ways;
  • Exploring the linkages between taxation and inclusive growth, including understanding the economic and distributional impacts of taxation;
  • Supporting the development of policy, tools and techniques to enhance the capacity of governments to create more evidence-based, inclusive tax policy-making processes.