Foreign Aid and State Legitimacy

2021 ◽  
pp. 1-43
Author(s):  
Robert A. Blair ◽  
Philip Roessler
Keyword(s):  
Foreign Aid ◽  
Statistical Power ◽  
Sample Selection ◽  
Tax Compliance ◽  
The United States ◽  
African Countries ◽  
State Legitimacy ◽  
Country Analysis ◽  
Experimental Treatments ◽  
Behavioral Games

ABSTRACT What are the effects of foreign aid on the perceived legitimacy of recipient states? Different donors adhere to different rules, principles, and operating procedures. The authors theorize that variation in these aid regimes may generate variation in the effects of aid on state legitimacy. To test their theory, they compare aid from the United States to aid from China, its most prominent geopolitical rival. Their research design combines within-country analysis of original surveys, survey experiments, and behavioral games in Liberia with cross-country analysis of existing administrative and Afrobarometer data from six African countries. They exploit multiple proxies for state legitimacy, but focus in particular on tax compliance and morale. Contrary to expectations, the authors find little evidence to suggest that exposure to aid diminishes the legitimacy of African states. If anything, the opposite appears to be true. Their results are consistent across multiple settings, multiple levels of analysis, and multiple measurement and identification strategies, and are unlikely to be artifacts of sample selection, statistical power, or the strength or weakness of particular experimental treatments. The authors conclude that the effects of aid on state legitimacy at the microlevel are largely benign.

State legitimacy and tax compliance among small and medium scale enterprises: a case study of Dodowa district, Ghana

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abraham Gyamfi Ababio ◽  
Arthur Gnonsio Mangueye
Keyword(s):  
Sample Selection ◽  
Tax Compliance ◽  
Probit Model ◽  
Content Type ◽  
Medium Scale ◽  
State Legitimacy ◽  
Negative Effect ◽  
Sizable Proportion

Purpose Improving tax compliance would drive the needed development in Ghana. Small and medium scale enterprises (SME) constitute a sizable proportion of the Ghanaian economy but its contribution to tax revenue is below expectation. This study aims to determine whether SME's perception of state legitimacy affects tax compliance. Design/methodology/approach A structured questionnaire was administered to 200 SMEs randomly drawn from Dodowa in the Shai-Osudoku District of Greater Accra Region. Descriptive statistics and the Probit model with sample selection were used to analyse the data. Findings The study found that SME's perception of government legitimacy exerts a significant negative effect on reducing profit to avoid tax liability (ß = −0.0305, p < 0.05). Other factors such as education and fear of fines and penalties were also found to reduce the likelihood that the firm would reduce profit to avoid high tax liability. Still, tax knowledge had a positive effect on this behaviour. Practical implications This study would help deepen policymakers' knowledge of how to improve tax compliance among SMEs in Ghana. Originality/value The originality of this work is that it explicitly models the role of fiscal exchange theory in explaining tax compliance among SMEs in Ghana by using robust methodology.

Nongovernmental Organizations: Bread for the World, Inc.

2018 ◽  
Author(s):  
Erica Ashbaugh ◽  
Gary A. Goreham
Keyword(s):  
Foreign Aid ◽  
The United States ◽  
Coalition Building ◽  
African Countries ◽  
Assistance Program ◽  
Faith Based ◽  
Wide Range ◽  
The World ◽  
Food For Peace ◽  
Nutrition Assistance

Bread for the World, Inc. is a 501(c)4 faith-based organization whose purpose is to advocate policymakers to end hunger and poverty. The organization began in the early 1970s, founded by Arthur Simon, who became its first president. Simon’s 1975 book, Bread for the World, outlined the vision and scope of the organization, not as a service-delivery entity but as an education, coalition-building, and advocacy organization. David Beckmann, author of Exodus from Hunger: We Are Called to Change the Politics of Hunger, is the organization’s president as of 1991. The organization is supported by individuals, local congregations, denominations, and other organizations. Two related affiliates were created to assist in the hunger-ending goal. First, Bread for the World Institute, a 501(c)3 organization, conducts research on domestic and global hunger issues and disseminates reports to those advocating for hunger-ending policy with its Annual Hunger Report. Second, the Alliance to End Hunger, a 501(c)3 organization, brings together a wide range of both faith-based and secular organizations in the fight against hunger. Bread for the World has a noteworthy history of advocacy and collaboration. They actively advocated in 2000 for Jubilee 2000, a debt relief and forgiveness program for over 40 countries. They promoted the African Growth and Opportunity Act of 2000 to promote quality of life, human rights, and equitable trade relationships between the United States and African countries. Bread for the World advocated for the Food for Peace Acts and the 2016 Foreign Aid Transparency and Accountability Act to extend foreign aid more quickly and efficiently. They worked with legislators regarding the Head Start programs and the Supplemental Nutrition Assistance program. Bread for the World used a Feed Our Children letter-writing campaign for individuals to put pressure on legislators to place priority on children’s food programs. As winner of the World Food Prize in 2010, David Beckmann stated, “We must talk to real people in power, about concrete issues, and not about big dreams.” Bread for the World’s goal is the UN’s Sustainability Development Goal to eliminate hunger by 2030.

scholarly journals Tax Amnesties in Africa: An Analysis of the Voluntary Disclosure Programme in Uganda

2020 ◽  
Author(s):  
Solomon Rukundo
Keyword(s):  
South Africa ◽  
Voluntary Disclosure ◽  
Financial Regulation ◽  
Cost Benefit Analysis ◽  
Tax Compliance ◽  
Cost Benefit ◽  
The United States ◽  
African Countries ◽  
Tax Amnesty ◽  
Secret Investigation

Tax amnesties have taken centre stage as a compliance tool in recent years. The OECD estimates that since 2009 tax amnesties in 40 jurisdictions have resulted in the collection of an additional €102 billion in tax revenue. A number of African countries have introduced tax amnesties in the last decade, including Nigeria, Namibia, South Africa and Tanzania. Despite their global popularity, the efficacy of tax amnesties as a tax compliance tool remains in doubt. The revenue is often below expectations, and it probably could have been raised through effective use of regular enforcement measures. It is also argued that tax amnesties might incentivise non-compliance – taxpayers may engage in non-compliance in the hope of benefiting from an amnesty. This paper examines the administration of tax amnesties in various jurisdictions around the world, including the United States, Australia, Canada, Kenya and South Africa. The paper makes a cost-benefit analysis of these and other tax amnesties – and from this analysis develops a model tax amnesty, whose features maximise the benefits of a tax amnesty while minimising the potential costs. The model tax amnesty: (1) is permanent, (2) is available only to taxpayers who make a voluntary disclosure, (3) relieves taxpayers of penalties, interest and the risk of prosecution, but treats intentional and unintentional non-compliance differently, (4) has clear reporting requirements for taxpayers, and (5) is communicated clearly to attract non-compliant taxpayers without appearing unfair to the compliant ones. The paper then focuses on the Ugandan tax amnesty introduced in July 2019 – a Voluntary Disclosure Programme (VDP). As at 7 November 2020, this initiative had raised USh16.8 billion (US$6.2 million) against a projection of USh45 billion (US$16.6 million). The paper examines the legal regime and administration of this VDP, scoring it against the model tax amnesty. It notes that, while the Ugandan VDP partially matches up to the model tax amnesty, because it is permanent, restricted to taxpayers who make voluntary disclosure and relieves penalties and interest only, it still falls short due to a number of limitations. These include: (1) communication of the administration of the VDP through a public notice, instead of a practice note that is binding on the tax authority; (2) uncertainty regarding situations where a VDP application is made while the tax authority has been doing a secret investigation into the taxpayer’s affairs; (3) the absence of differentiated treatment between taxpayers involved in intentional non-compliance, and those whose non-compliance may be unintentional; (4) lack of clarity on how the VDP protects the taxpayer when non-compliance involves the breach of other non-tax statutes, such as those governing financial regulation; (5)absence of clear timelines in the administration of the VDP, which creates uncertainty;(6)failure to cater for voluntary disclosures with minor errors; (7) lack of clarity on VDP applications that result in a refund position for the applicant; and (8) lack of clarity on how often a VDP application can be made. The paper offers recommendations on how the Ugandan VDP can be aligned to match the model tax amnesty, in order to gain the most from this compliance tool.

Foreign Aid and Soft Power: Great Power Competition in Africa in the Early Twenty-first Century

2021 ◽  
pp. 1-22
Author(s):  
Robert A. Blair ◽  
Robert Marty ◽  
Philip Roessler
Keyword(s):  
United States ◽  
Foreign Aid ◽  
Soft Power ◽  
The United States ◽  
African Countries ◽  
Liberal Democratic ◽  
Early Twenty ◽  
Information Management Systems ◽  
The Uk ◽  
Political Principles

Abstract Is foreign aid an effective instrument of soft power? Does it generate affinity for donor countries and the values they espouse? This article answers these questions in the context of Chinese aid to Africa and the competing aid regime of the United States. The study combines data on thirty-eight African countries from Afrobarometer, AidData, and the Aid Information Management Systems of African finance and planning ministries. The authors use spatial difference-in-differences to isolate the causal effects of Chinese and US aid. The study finds that Chinese aid to Africa does not increase (and may in fact reduce) beneficiaries’ support for China. By contrast, US aid appears to increase support for the United States and to strengthen recipients’ commitment to liberal democratic values, such as the belief in the importance of elections. Chinese aid does not appear to weaken this commitment, and may strengthen it. The study also finds that Chinese aid increases support for the UK, France and other former colonial powers. These findings advance our understanding of the conditions under which competing aid regimes generate soft power and facilitate the transmission of political principles and ideals.

Trust and Power as Determinants of Tax Compliance in Asia: A Cross-Country Analysis

2019 ◽  
Vol 12 (2) ◽  
pp. 49-66
Author(s):  
Abdulsalam Mas’ud ◽  
Nor Aziah Abdul Manaf ◽  
Natrah Saad
Keyword(s):  
Tax Compliance ◽  
Country Analysis ◽  
Cross Country ◽  
Trust And Power

The Normalization of Sino-French Diplomatic Relations in 1964 and the Formation of the “One-China” Principle: Negotiations over Breaking French Diplomatic Relations with the Republic of China Government and the Recognition of the People’s Republic of China as the Sole Legitimate Government

2012 ◽  
Vol 8 (1) ◽  
pp. 252-271
Author(s):  
Madoka Fukuda
Keyword(s):  
The United States ◽  
People’S Republic Of China ◽  
Diplomatic Relations ◽  
People's Republic Of China ◽  
African Countries ◽  
Republic Of China ◽  
The Republic Of China ◽  
The Republic ◽  
The Government ◽  
The One

AbstractThis article examines the substance and modification of the “One-China” principle, which the government of the People’s Republic of China (PRC) pursued in the mid 1960s. Under this principle, a country wishing to establish diplomatic relations with the PRC was required first to break off such relations with the Republic of China (ROC). In 1964 the PRC established diplomatic relations with France. This was its first ambassadorial exchange with a Western government. The PRC, in the negotiations over the establishment of diplomatic relations, attempted to achieve some consensus with France on the matter of “One-China”. The PRC, nevertheless, had to abandon these attempts, even though it demanded fewer conditions of France than of the United States (USA), Japan and other Western countries in the 1970s. The PRC had demanded adherence to the “One-China” principle since 1949. France, however, refused to accept this condition. Nevertheless, the PRC established diplomatic relations with France before the latter broke off relations with the ROC. Subsequently, the PRC abandoned the same condition in negotiations with the African governments of the Republic of Congo, Central Africa, Dahomey and Mauritania. After the negotiations with France, the PRC began to insist that the joint communiqué on the establishment of diplomatic relations should clearly state that “the Government of the People’s Republic of China is the sole legal government of China”. However, France refused to insert these words into the communiqué. Afterwards, the PRC nevertheless insisted on putting such a statement into the joint communiqués or exchanges of notes on the establishment of diplomatic relations with the African countries mentioned above. This was done in order to set precedents for making countries accede to the “One-China” principle. The “One-China” principle was, thus, gradually formed in the process of the negotiation and bargaining between the PRC and other governments.

Power Lies in the Barrel of a Gun: Diplomacy Without Strategic Military Capability Is Futile

2021 ◽  
Vol 20 (1-2) ◽  
pp. 77-99
Author(s):  
Moorosi Leshoele
Keyword(s):  
The United States ◽  
United Nations Security Council ◽  
African Countries ◽  
Military Capability ◽  
Black Africa ◽  
Mineral Wealth ◽  
The World ◽  
Long Time ◽  
History Of ◽  
Pipe Dream

Abstract The United States of America invests heavily on their military capability and it is estimated that it spends, alone, approximately 40 per cent of what the whole world spends on military. Four of the other super powers that make up the five permanent members of the United Nations Security Council (UN-SC) also spend a significant percentage of their national budgets on military. Chinweizu has for a long time argued that Africa needs a well-resourced African Standby Force (or the Black Africa League) that will protect the interests of the continent so as to prevent the history of Africans enslavement and colonialism repeating itself. This article seeks to analyse Africa’s investment on its military defense capability vis-à-vis the five permanent members of the UN-SC and North Korea, by critiquing two case studies of two of the continent’s economic giants – South Africa and Egypt. Realist and Sankofa perspectives are used as the prisms through which the article was researched. In line with Chinweizu’s observation, the article argues that without serious political will and dedication to building Africa’s nuclear weapons capability and ensuring that Africa is economically self-reliant, diplomatic engagements with the rest of the world as (un)equal partners will remain a pipe dream and the looting of Africa’s mineral wealth will continue unabated. It is clear that given the reality of the African Holocust if African countries fail to collectively defend themselves, Africa will continue to be a political football for the rest of the world.

scholarly journals Foreign aid on economic growth in Africa: A comparison of low and middle-income countries

2015 ◽  
Vol 18 (4) ◽  
pp. 449-462 ◽  
Author(s):  
Aye Mengistu Alemu ◽  
Jin-Sang Lee
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Low Income ◽  
Empirical Studies ◽  
Critical Role ◽  
Generalized Method Of Moments ◽  
African Countries ◽  
Middle Income ◽  
Middle Income Countries ◽  
Theoretical Hypothesis

Previous empirical studies on the effects of foreign aid on economic growth have generated mixed results that make it difficult to draw policy recommendations. The main reason for such mixed results is the choice of a single aggregate list of countries, regardless of the disparities in levels of development. This study therefore fills the development gap by disaggregating the African data into a panel of 20 middle- income and 19 low- income African countries over a period of 15 years between 1995 and 2010, and employing a dynamic generalized method of moments (GMM) model to address the dynamic nature of economic growth as well as the problems of endogeneity. The results of this study support the theoretical hypothesis that a positive relationship between aid and GDP growth exists, but only for low-income African countries, not middle-income ones. On the other hand, the study reveals that middle- income African countries tend to experience a greater impact on their economic growth from foreign direct investment (FDI) and natural resources revenues, mainly oil exports. This implies that the frequent criticism that foreign aid has not contributed to economic growth is flawed, at least in the case of low-income African countries. In fact, foreign aid has played a critical role in stimulating economic growth in such countries through supplementing domestic sources of finance such as savings, thus increasing the amount of investment and capital stock in them.

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