Building tax systems in fragile states. Challenges, achievements and policy recommendations

Authors: Odd-Helge Fjeldstad, Morten Bøås, Julie Brun Bjørkheim & Frida Margrethe Kvamme
Publisher: CMI
Date: March 2018


CMI Report R 2018:03

The purpose of this study is to systematise and analyse existing knowledge on taxation in fragile states. Efforts to support domestic revenue mobilisation in conflict situations require a different approach and other means than in the more stable developing countries. On that basis, the study discusses possible entry points for Norwegian support to domestic revenue mobilisation in ways that may contribute to strengthen state-building and improve government legitimacy.

Complexity, limited experience and security concerns suggest that one should be cautious to adopt bilateral technical assistance programmes of the kind implemented in other developing countries. Instead, the study argues in favour of engagement via multilateral institutions, including multi-donor trust funds and other forms of pooled resources.