Arithmetics and Politics of Domestic Resource Mobilization
The 2015 United Nations resolution on Financing for Development stresses the importance of effective resource mobilization and use of domestic resources to pursue sustainable development. The first Sustainable Development Goal is to eradicate extre...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/622051492453425277/Arithmetics-and-politics-of-domestic-resource-mobilization http://hdl.handle.net/10986/26467 |
| Summary: | The 2015 United Nations resolution on
Financing for Development stresses the importance of
effective resource mobilization and use of domestic
resources to pursue sustainable development. The first
Sustainable Development Goal is to eradicate extreme poverty
for all people everywhere by 2030. This paper proposes an
accounting exercise to assess whether it is feasible for
countries to eliminate poverty using only domestic
resources, in other words, by mere redistribution. Moreover,
the paper argues that the concentration of resources in the
hands of fewer individuals in the society may hinder the
feasibility of implementing effective fiscal policies (from
the revenue side and the social spending side) to reduce
poverty. The paper provides a new tool to assess the
capacity of countries to eliminate poverty through
redistribution, and a new tool to approximate the
concentration of political influence in a country. The new
methodologies are applied to the most recent surveys
available for more than 120 developing countries. The
findings show that countries with the same fiscal capacity
to mobilize resources for poverty eradication differ widely
in the political feasibility of such redistribution policies. |
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