Opinion: Scaling up tax mobilization is a necessary condition to succeed in the post-aid era of development.

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.

2026 is the year to focus on solutions for the post-aid era, and to recognize that success hinges on lower-income countries’ ability to dramatically raise more public revenue, and on the partnerships they can count on as they do so.

This opinion piece was first published by Devex. Read the full article here.

Giulia Mascagni

Giulia Mascagni is a Research Fellow at the Institute of Development Studies and Executive Director of the ICTD. Her main area of work is taxation, but she also has research interest in public finance, evaluation of public policy, and aid effectiveness. She is an economist by training, holding a PhD in Economics from the University of Sussex. Her main geographical interest lies in African countries, with a particular focus on Ethiopia and Rwanda.
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