Staying the course in Mexico: the role of the US in the drug war, 2006–present

With drug-related violence reaching record levels in Mexico, there has been growing debate over its causes. US and Mexican officials blame many factors, including problems with their strategy in the drug war, fighting among cartels, corruption in police forces, an ineffective legal justice system and US drug demand. In this paper, I argue that the Mérida Initiative, a multi-billion dollar programme of US assistance, is an important additional factor. Drug-related violence increased in the years after the implementation of the Mérida Initiative, declined when Mexican officials paused new programmes in 2012 and increased again as US and Mexican officials implemented new Mérida programmes in the following years. Over the same time period, drug-related homicides and complementary counternarcotics assistance from the US Department of Defense are positively correlated. Using US records, I show that US officials have been willing to overlook the growing violence because they have been more focused on achieving their economic and strategic objectives. I conclude that their actions have played a significant role in increasing drug-related violence while starting an ominous new phase of US imperialism in Mexico.     

Economic variables and rural‐urban migration: Some thoughts on the Todaro hypothesis

Using data from 433 firms operating along Uganda’s charcoal and timber supply chains, we investigate patterns of bribe payment and tax collection between supply chain actors and government officials responsible for collecting taxes and fees. We examine the factors associated with the presence and magnitude of bribe and tax payments using a series of bivariate probit and Tobit regression models. We find empirical support for a number of hypotheses related to payments, highlighting the role of queuing, capital-at-risk, favouritism, networks, and role in the supply chain. We also find that taxes crowd in bribery in the charcoal market.     

Tax Collection in Developing Countries – New Evidence on Semi-Autonomous Revenue Agencies (SARAs)

Abstract

Over the last two decades, semi-autonomous revenue agencies (SARAs) have become a key element of public administration reform. They are supposed to improve revenue mobilisation and stabilise state–taxpayer relations. But do SARAs really outperform conventional tax administrations? This article argues that they do. Presenting the results of a panel analysis of local tax collection in Peru between 1998 and 2011, it shows that municipalities with SARAs collect more revenue than those with conventional tax administrations. The results also indicate that local revenue is more stable in municipalities with SARAs, which is good for budget policy and planning.     

The Relational Dynamics of World Bank Survey Missions

This article demonstrates that World Bank internal learning has led to significant changes in how the organization interacts with government officials through survey missions. Reviewing evidence of institutional learning and associated changes in practice and focusing on the relational modes being manifest in technical assistance, the article identifies three main phases of World Bank survey missions: general survey missions (1940s–1960s), country assistance strategies (1990s–2000s), and country partnership frameworks (2010s). Overall, World Bank reviews have repeatedly highlighted the importance of non-hierarchical interactions between Bank staff and country officials. In recent years, practice has begun to catch up with these operational insights.     

The annulled Tax state: Schumpeterian Prolegomena to the study of postcommunist fiscal sociology

How was a new infrastructure of revenue-collection instituted after the collapse of Soviet-type regimes in Eastern Europe? This article suggests that currently available answers to this question are unsatisfactory. Building upon insights derived from the literature on fiscal sociology and from Joseph Schumpeter’s analysis of modern “tax states,” it outlines a new approach to the study of various phenomena related to revenue-collection in postcommunism. More specifically, I examine a set of empirical and theoretical issues related to the reemergence of a taxpayer as having a cultural role, the reconfiguration of the bureaucratic apparatuses bequeathed by the old regime, and the recreation of trustworthy national currencies. Having identified important gaps in our understanding of the transformative processes that engulfed the region after 1989, the paper introduces a more comprehensive research program focused on the context-specific challenges inherent in the attempt to re-establish tax states in the formerly communist countries.     

On the apparent benefits of higher productivity: An arithmetical illustration a comment

During the 1980s, like many other developing countries Nepal attempted actively to attract direct foreign investment. This article reports the results of a survey of the foreign‐owned firms in operation at the end of the 1980s. The motives of firms for their investment decisions in Nepal are summarised. The impact of foreign investment is assessed quantitatively using both financial and economic cost‐benefit criteria. In general, it appears that foreign investment has been beneficial to both the foreign investors and the national economy. Foreign investors from India have played a particularly important role. However, much of the national returns from foreign investment is derived from the payment of taxes, so that an excessively generous policy of tax incentives may not maximise national returns.     

Why Are Some States More Generous in Offering R&D Tax Credits than Others? An Empirical Answer

This article examines political cost factors that affect a state's propensity to adopt a corporate income tax credit to encourage research and development (R&D) activities in the United States. Assuming state elected officials are vote-maximizers, this article hypothesizes that politicians' consideration of potential revenue losses and influence from organized interests are critical in a state's decision to provide a R&D tax credit. To test the hypothesis, two statistical models are specified. With a dichotomous dependent variable of whether or not a R&D tax credit is offered, a Logit regression model is utilized. For the interval level dependent variable of effective R&D credit rates, this article specifies a Tobit model. The results show that politicians' concerns about revenue losses loom much larger than private organized interests.     

State budget support to local government

The principle of self-government is essentially a new phenomena in the Czech Republic. Under the previous regime, almost everything was ruled by the central government. At the present time, the major constraint to local budget reform is primarily from the local authorities’ lack of experience. While on one hand, this gives the Czech Republic a challenge to avoid some of the mistakes made in several developed countries, it is, on the other hand, difficult to make estimates of the possible responses to any change. Next to the lack of experience, there is a strong feeling both at the local and the central levels of government that the self-government bodies should have almost no regulation from the central government. The current opinion is that their control should be left only to the respective electorate. There is also the belief that self-government units should become increasing financed by tax revenues derived from within their own area. An additional complication is the lack of common non-governmental institutions (different associations and others) which usually smooth the the relationship between local and central governments. The changes in the Czech Republic are not yet complete. After the changes in the legal framework, the complete reform of the tax and social systems were to follow. While the essentials of tax reform were introduced in January 1993, the changes in the social systems are still under consideration. In spite of the relatively short history of having true local authorities functioning in the Czech Republic, the establishment of an additional level of government is being proposed. This issue is reopening some already closed matters and will bring a change to the whole system. As in many other countries, the division of responsibilities between different levels of government will probably continue to be discussed until the end of time.     

Helpful local surtaxes? Florida and disadvantaged families

Well-intended tax policy often produces unintended consequences. In this article, we look at one such tax policy, specialised surtaxes in the State of Florida. Surtaxes are frequently adopted to provide financial assistance to poverty-based local programmes and services. Despite the intended benefits, we show that the contributors of the tax have been able to capitalise the cost into the residential property market, ultimately placing the burden of the surtax upon the population its revenue intends to help.     

Local Fiscal Stress in California: Out of Local Control and Driving Toward Growth

Abstract

Many regions of the United States have experienced rapid growth in recent decades with California being the best example of this growth. The dangers of such growth have been evident since the 1970s and yet, neither the state nor local governments have been very successful in implementing growth control policies. Why it is that government has been unable to rein in the growth has been the focus of much research in recent decades. There are essentially two schools of thought with regard to this question. One is that pro‐growth forces—essentially landowners, business elites, and elected officials—actively promote growth because it provides them personally with benefits. The other view, advocated most by Paul Peterson back in the early 1980s, is that elected officials do support and adopt pro‐growth policies, but not by choice. Cities, Peterson argued, are constrained by the economic situation around them and they must do what they can to raise revenues and reduce, or hold steady, expenditures. This research examines a region of southern California that has experienced tremendous growth despite the fact that surveys of resident attitudes within the region indicates that in general, residents favor growth control. This research contributes to an understanding of the driving forces behind the pro‐growth policies of local governments by considering how fiscal constraints placed on local governments by the state may limit the policy options of local elected officials, as Peterson predicted. This study finds that there is evidence to indicate that the revenue‐raising options available to cities may be contributing to pro‐growth policies. And this could help explain why elected officials continue to support growth within their cities despite the fact that residents express negative views toward growth.     

Managing revenue collection outsourcing in Tanzania’s local government authorities: a case study of Iringa Municipal Council

Due to their critical role in development and governance, local governments need adequate financial resources to deliver the many developmental functions. However, such financial resources are either not available or inadequate. One way of rising to this challenge has been scaling up revenue collection from local revenue sources. This is done through either in-house collection or outsourcing revenue collection. Extant research has focused on the benefits and challenges of outsourcing. This paper expands this body of knowledge by studying how local governments manage private collectors to maximise benefits of outsourcing. From interviews conducted with Iringa Municipality officials and staff, the paper shows that revenue collection outsourcing can be an effective tax administration strategy if properly managed.     

Enterprise Growth and Survival in Vietnam: Does Government Support Matter?

This paper analyses whether direct government assistance during start-up and other forms of interaction with the state sector have influenced the long-run performance of small and medium-sized manufacturing enterprises (SMEs) in Vietnam. Using three partly overlapping surveys during the period 1990–2000, we find strong effects on firm dynamics from interaction with state institutions. Enterprises which have the state sector as their main customer perform better. This is so for both survival and growth. Moreover, temporary tax exemptions during firm start-up had a separate and positive influence on long-run growth for non-household enterprises and initial credit support seems to benefit rural firms.     

Meeting the challenge: state revenue raising

Recent trends in state tax revenue reveal that overall reliance of states on taxes have been declining for the last 43 years. Faced with reduction in tax revenues, states have restructured their tax systems to meet public demand for more services. State income taxes are the one type of tax that has risen consistently. What causes state policy makers to rely on this type of tax? This research addresses this question.     

The decisive impact of tax administration practices on firms’ corruption Experience and Perceptions: Evidence from Europe and Central Asia

Two competing conceptualizations of corruption in the literature view it either as efficient or burdensome from firms’ perspective. Using data on the prevalence and the nature of firms’ interactions with tax authorities in twenty-eight Eastern European and Central Asian (ECA) countries, this paper contributes to evaluation of competing ideas in the literature about firms’ experience of corruption in tax administration. Special emphasis is given to examination of taxation-related determinants of corruption prevalence (frequency and magnitude of bribery), as well as the effect of the interaction with tax authorities on perception of tax and overall corruption. Regardless of country context, it appears that perceived corruption in tax administration and actual experiences with bribery during interactions with tax officials more than anything else affect the overall perceptions of corruption, thereby supporting the conceptualization of corruption in tax administration as burdensome, rather than efficient.     

An Information Model to Present Proposals to Increase Taxes: Two Examples in the Context of American Values

This article offers an information model for educating the public on the rationale for a tax increase. It argues that citizens exposed to two types of information—a need narrative and an anchor value—are more willing to support a tax increase. The applicability of the model is illustrated with two examples in which the model was used to structure the presentation of information. In both situations, exposure to the specific types of information suggested by the model is associated with support for a tax increase. The conclusion relates the model to the findings of previous research on the attributes of successful referenda campaigns for tax increases.     

The politics of government‐business relations in Myanmar 1

All post‐colonial Myanmar governments and the business community benefited from their clientelistic networks. Without the help of government officials, many business firms would have gone under quickly; at the same time, without the assistance of business people, it would have been hard for most post‐colonial Myanmar governments to keep themselves in power. It is very clear that government‐business relations cannot simply be reduced to a zero‐sum game. This article clearly shows that if we assemble cases of government‐society relations in Myanmar in the way we solve a jigsaw puzzle, the picture that emerges is not simply a zero‐sum situation. Rather, certain interactions between incumbent governments and the business community in post‐colonial Myanmar were mutually empowering.     

Fighting Tax Evasion in Latin America: the contrasting strategies of Chile and Argentina

In the 1990s both Chile and Argentina embarked on efforts to tackle tax evasion. The strategies they pursued differed substantively: Argentina followed a coercive approach that created an elite audit team endowed with special legal powers, while Chile undertook a less spectacular service-oriented approach that improved the fiscal pact between state and society and enacted tax administration reform. Chile succeeded in permanently lowering tax evasion levels, while Argentina's success was short-lived and evasion levels soon returned to previous heights. Besides important differences in the institutional strength of these countries, the contrasting outcomes can be attributed in no small measure to the different strategies adopted. Their experience can provide some useful lessons in the elusive battle against tax evasion in Latin America.     

The Challenges for Developing Countries in International Tax Justice

Developing countries face three main challenges in international tax cooperation. The most widely known are the twin problems of tax avoidance by foreign investors and tax evasion by domestic actors, which have become a major focus of debate in international organisations and of civil society activism in recent years. The second problem, tax competition, incorporates a range of issues from the ‘prisoners’ dilemma’ facing countries competing for inward direct investment through to the harmful tax rules used by tax havens that enable tax avoidance and evasion. This article reviews four recent monographs that analyse these problems at an international level. While they contain much useful discussion of the problems and potential technical solutions, there remains a need for political economy research to understand why certain technical solutions have not been adopted by governments. A third challenge faced by developing countries, barely considered in the tax and development literature up to now, leads to a note of caution: international tax institutions tend to be designed in ways that place disproportionate restrictions on capital-importing countries’ ability to tax foreign investors.     

Obtaining redress for abuse of office in Russia: The Soviet legacy and the long road to administrative justice

This article examines the options for redressing abuse of office available to citizens in Soviet and post-Soviet Russia. I consider the courts, the procuracy, and the complaint mechanism as sites for citizens to lodge claims against abuse of office in late-Soviet and post-Soviet times. After the collapse of the Soviet system there was an attempt to overcome the Soviet legacy, to strengthen legal institutions and establish administrative justice. Analysis of Soviet and post-Soviet normative documents and statistical data allows us to argue that opportunities for Russian citizens to combat service crimes in the courts have improved substantially. However, the system for coping with abuse of office remains imperfect, and retains features of the Soviet legacy despite vague legislation about administrative justice and dual ways of coping with abuse through legal and quasi-legal mechanisms. The re-establishment of the complaint mechanism in the conditions of contemporary Russia exacerbates this imperfection. Overall, the complaint mechanism occupies a significant place in people's options for making claims against officials, especially claims against high-ranking officials.     

Economic inducements to private foreign investment in Africa∗

The removal of high levels of protection combined with substantial real devaluations have changed the environment in which Ghanaian manufacturing firms have operated in the 1990s. The changes in output, composition and productivity, which have occurred over this period, are examined in this article. Survey evidence for the growth of the sector is shown to be consistent with data from sales tax returns. Analysis of the panel survey shows that, in a comparative context, the rate of job creation in Ghana's manufacturing sector is high. This rate is highest in medium‐sized firms; small firms have not grown more rapidly than larger firms. There has been no underlying growth in technical efficiency and output growth has been matched by a commensurate growth in labour and capital inputs. Labour productivity differs substantially by firm size due primarily to differences in physical, not human, capital endowments.