Why is it so hard to raise taxes in developing economies? Lessons from World Bank Experience with Domestic Revenue Mobilization

In 2015, at the World Conference on Financing for Development in Addis Ababa, the international development community recognized that official development assistance was unlikely to be adequate to achieve the ambitious Sustainable Development Goals, and resources from other sources would be needed, including domestic revenue mobilization (DRM).  The World Bank was among the multilateral institutions that committed to step up its support for this critical source of financing, pledging to ramp up its support to client countries. 

Four Ways the World Bank Group Can Help Countries Mobilize More Tax Revenue

Successfully tackling tax issues requires enhanced detailed diagnostic work, dialogue, capacity development, and realistic assessments of the dynamics working against tax collection in countries. Unless program design considers addressing long-standing governance problems that impair tax collection, technical and institutional reform will have limited impact.