Resource mobilization, institutions and structural transformation

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Presentation transcript:

Resource mobilization, institutions and structural transformation Remarks at the 4th Plenary Session AEC 2011 Addis Ababa, Ethiopia. Oct 27, 2011

DRM: Scope and issues Scope Key issues Public and private DRM Technical and Institutional dimensions Key issues Breadth and efficiency Distribution and equity Tax as incentive Transformation policy tool

Top 15 and Bottom 15 countries in Tax/GDP, 2007: Color code: Gold = mineral rich; gray = oil rich Lesotho 42.9 Swaziland 39.8 Botswana 35.2 Seychelles 32.0 Namibia 28.8 South Africa 26.9 Cape Verde 23.0 Morocco 22.3 Ghana 20.8 Malawi 20.7 Djibouti 20 Senegal 19.2 Gambia 18.9 Kenya 18.4 Cameroon 18.2 Bottom 15 Tax/GDP Burkina Faso 11.5 Guinea-Bissau Niger 11.0 Madagascar 10.7 Sierra Leone 10.5 Gabon 10.3 Guinea 8.2 Central African Rep 7.7 Algeria Sudan 6.3 Nigeria 6.1 Congo, Rep 5.9 Angola 5.7 Chad 4.2 Equatorial Guinea 1.7

Tax Effort: with and without resource rents, 2007

Institutional innovation Policy focus Breadth Institutional innovation Transformation Private activity expansion (limits to “milking a thin cow”) Harness untapped potential Decentralization Building political support: service delivery as compliance incentive PICK WINNERS Tax incentives for entrepreneurship