Taxing smarter is the key to thriving in an era of declining aid
By Giulia Mascagni // 15 January 2026
Many will remember 2025 as the year when the development sector changed for good — whether that is ultimately a change for the better is yet to be determined.
With dramatic cuts in development spending, rich countries are already going back to old ways of doing aid, pressed by national interest and short-termism in demonstrating impact. Others have argued that in this crisis also lies an opportunity to boost resilience, ownership, and equal partnership.
What this conversation has often omitted is the key puzzle piece to getting the next era of development right: taxation.
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About the author
Giulia Mascagni
Professor Giulia Mascagni is the executive director of the International Centre for Taxation and Development and a professorial research fellow at the Institute for Development Studies. She specializes in taxation and public finance in lower-income countries, with extensive research and policy experience in Ethiopia and Rwanda.
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