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

Journal of Development Studies, Forthcoming

34 Pages Posted: 8 Jun 2010 Last revised: 31 Mar 2011

Nicholas Eubank

Vanderbilt Center for Study of Democratic Institutions

Date Written: March 26, 2011

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.

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

JEL Classification: F35, H11, H20, H70

Suggested Citation

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

Nicholas Eubank (Contact Author)

Vanderbilt Center for Study of Democratic Institutions ( email )

VU Station B #351817
Nashville, TN 37235-1817
United States

HOME PAGE: http://www.nickeubank.com

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