Abstract

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Taxation, Political Accountability, and Foreign Aid: Lessons from Somaliland


Nicholas Eubank


Independent

March 26, 2011

Journal of Development Studies, Forthcoming

Abstract:     
For years, studies of state formation in early and medieval Europe have argued that the modern, representative state emerged as the result of negotiations between autocratic governments in need of tax revenues and citizens who were only willing to consent to taxation in exchange for greater government accountability. This paper presents evidence that similar dynamics shaped the formation of Somaliland’s democratic government. In particular, it shows that government dependency on local tax revenues -- which resulted from its ineligibility for foreign assistance -- provided those outside the government with the leverage needed to force the development of inclusive, representative and accountable political institutions.

Number of Pages in PDF File: 34

Keywords: Taxation, Democracy, Governance, Africa, Somalia, Somaliland, Foreign Aid, Political Economy

JEL Classification: F35, H11, H20, H70

Accepted Paper Series





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Date posted: June 8, 2010 ; Last revised: March 31, 2011

Suggested Citation

Eubank, Nicholas, Taxation, Political Accountability, and Foreign Aid: Lessons from Somaliland (March 26, 2011). Journal of Development Studies, Forthcoming. Available at SSRN: http://ssrn.com/abstract=1621374

Contact Information

Nicholas Eubank (Contact Author)
Independent
No Address Available
United States
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