A case for improving developing countries’ tax systems

Taxes, not aid, will finance development moving forward, particularly past the 2015 deadline of the Millennium Development Goals.

This is an economic justice expert and senior aid agency official’s take on how development will be financed in the coming years. David McNair, economic justice adviser of Christian Aid, echoes the increasingly popular view that aid alone is not enough to support efforts toward achieving MDGs. He suggests aid should be complemented with efforts to improve domestic tax systems, especially in low-income countries with weak systems and where corruption is rampant.

McNair, in a blog post in the Guardian, argues that improving developing countries’ tax systems is crucial to a post-2015 development agenda, which he says “must tackle inequality as well as poverty.”

“The potential of tax systems to raise revenue, build state accountability and reduce inequality should be at the front and centre of what comes next,” McNair writes.

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About the author

  • Ivy Mungcal

    As former senior staff writer, Ivy Mungcal contributed to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean, and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.