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Revenue collection and social policies: their underestimated contribution to social cohesion

Social cohesion is an important precondition for peaceful and economically successful societies. The question of how societies hold together and which policies enhance social cohesion has become a relevant topic on both national and international agendas. This Briefing Paper stresses the contribution of revenue collection and social policies, and in particular the interlinkages between the two.
It is evident that revenue mobilisation and social policies are intrinsically intertwined. It is impossible to think carefully about either independently of the other. In particular, revenue is needed to finance more ambitious social policies and allow countries to reach goals, such as those included in the 2030 Agenda for Sustainable Development. Similarly, better social policies can increase the acceptance of higher taxes and fees.
Furthermore, and often underestimated, a better understanding of the interlinkages between revenue generation and social policies can provide a significant contribution to strengthening social cohesion – in particular, concerning state–citizen relationships.
In order to shed light on these interlinkages, it is useful to have a closer look at the concept of the “fiscal contract”, which is based on the core idea that governments exchange public services for revenue. Fiscal contracts can be characterised along two dimensions: (i) level of endorsement, that is, the number of actors and groups that at least accept, and ideally proactively support, the fiscal contract, and (ii) level of involvement, that is, the share of the population that is involved as taxpayer, as beneficiary of social policies or both. In many developing countries, either because of incapacity or biased state action towards elite groups, the level of involvement is rather low.
Given the common perception that policies are unjust and inefficient, in many developing countries the level of endorsement is also low. It is precisely in these contexts that interventions on either side of the public budget are crucial and can have a significant societal effect beyond the fiscal realm.
We argue that development programmes need to be especially aware of the potential impacts (negative and positive) that work on revenue collection and social policies can have on the fiscal contract and beyond, and we call on donors and policy-makers alike to recognise these areas as relevant for social cohesion. We specifically identify three key mechanisms connecting social policies and revenue collection through which policy-makers could strengthen the fiscal contract and, thereby, enhance social cohesion:
  1. Increasing the effectiveness and/or coverage of public social policies. These interventions could improve the perceptions that people – and not only the direct beneficiaries – have of the state, raising their willingness to pay taxes and, with that, improving revenues.
  2. Broadening the tax base. This is likely to generate new revenue that can finance new policies, but more importantly it will increase the level of involvement, which will have other effects, such as increasing government responsiveness and accountability in the use of public resources.
  3. Enhancing transparency. This can stimulate public debate and affect people’s perceptions of the fiscal system. In order to obtain this result, government campaigns aimed at diffusing information about the main features of policies realised are particularly useful, as are interventions to improve the monitoring and evaluation system.

Revenue collection and social policies: their underestimated contribution to social cohesion

Social cohesion is an important precondition for peaceful and economically successful societies. The question of how societies hold together and which policies enhance social cohesion has become a relevant topic on both national and international agendas. This Briefing Paper stresses the contribution of revenue collection and social policies, and in particular the interlinkages between the two.
It is evident that revenue mobilisation and social policies are intrinsically intertwined. It is impossible to think carefully about either independently of the other. In particular, revenue is needed to finance more ambitious social policies and allow countries to reach goals, such as those included in the 2030 Agenda for Sustainable Development. Similarly, better social policies can increase the acceptance of higher taxes and fees.
Furthermore, and often underestimated, a better understanding of the interlinkages between revenue generation and social policies can provide a significant contribution to strengthening social cohesion – in particular, concerning state–citizen relationships.
In order to shed light on these interlinkages, it is useful to have a closer look at the concept of the “fiscal contract”, which is based on the core idea that governments exchange public services for revenue. Fiscal contracts can be characterised along two dimensions: (i) level of endorsement, that is, the number of actors and groups that at least accept, and ideally proactively support, the fiscal contract, and (ii) level of involvement, that is, the share of the population that is involved as taxpayer, as beneficiary of social policies or both. In many developing countries, either because of incapacity or biased state action towards elite groups, the level of involvement is rather low.
Given the common perception that policies are unjust and inefficient, in many developing countries the level of endorsement is also low. It is precisely in these contexts that interventions on either side of the public budget are crucial and can have a significant societal effect beyond the fiscal realm.
We argue that development programmes need to be especially aware of the potential impacts (negative and positive) that work on revenue collection and social policies can have on the fiscal contract and beyond, and we call on donors and policy-makers alike to recognise these areas as relevant for social cohesion. We specifically identify three key mechanisms connecting social policies and revenue collection through which policy-makers could strengthen the fiscal contract and, thereby, enhance social cohesion:
  1. Increasing the effectiveness and/or coverage of public social policies. These interventions could improve the perceptions that people – and not only the direct beneficiaries – have of the state, raising their willingness to pay taxes and, with that, improving revenues.
  2. Broadening the tax base. This is likely to generate new revenue that can finance new policies, but more importantly it will increase the level of involvement, which will have other effects, such as increasing government responsiveness and accountability in the use of public resources.
  3. Enhancing transparency. This can stimulate public debate and affect people’s perceptions of the fiscal system. In order to obtain this result, government campaigns aimed at diffusing information about the main features of policies realised are particularly useful, as are interventions to improve the monitoring and evaluation system.

Revenue collection and social policies: their underestimated contribution to social cohesion

Social cohesion is an important precondition for peaceful and economically successful societies. The question of how societies hold together and which policies enhance social cohesion has become a relevant topic on both national and international agendas. This Briefing Paper stresses the contribution of revenue collection and social policies, and in particular the interlinkages between the two.
It is evident that revenue mobilisation and social policies are intrinsically intertwined. It is impossible to think carefully about either independently of the other. In particular, revenue is needed to finance more ambitious social policies and allow countries to reach goals, such as those included in the 2030 Agenda for Sustainable Development. Similarly, better social policies can increase the acceptance of higher taxes and fees.
Furthermore, and often underestimated, a better understanding of the interlinkages between revenue generation and social policies can provide a significant contribution to strengthening social cohesion – in particular, concerning state–citizen relationships.
In order to shed light on these interlinkages, it is useful to have a closer look at the concept of the “fiscal contract”, which is based on the core idea that governments exchange public services for revenue. Fiscal contracts can be characterised along two dimensions: (i) level of endorsement, that is, the number of actors and groups that at least accept, and ideally proactively support, the fiscal contract, and (ii) level of involvement, that is, the share of the population that is involved as taxpayer, as beneficiary of social policies or both. In many developing countries, either because of incapacity or biased state action towards elite groups, the level of involvement is rather low.
Given the common perception that policies are unjust and inefficient, in many developing countries the level of endorsement is also low. It is precisely in these contexts that interventions on either side of the public budget are crucial and can have a significant societal effect beyond the fiscal realm.
We argue that development programmes need to be especially aware of the potential impacts (negative and positive) that work on revenue collection and social policies can have on the fiscal contract and beyond, and we call on donors and policy-makers alike to recognise these areas as relevant for social cohesion. We specifically identify three key mechanisms connecting social policies and revenue collection through which policy-makers could strengthen the fiscal contract and, thereby, enhance social cohesion:
  1. Increasing the effectiveness and/or coverage of public social policies. These interventions could improve the perceptions that people – and not only the direct beneficiaries – have of the state, raising their willingness to pay taxes and, with that, improving revenues.
  2. Broadening the tax base. This is likely to generate new revenue that can finance new policies, but more importantly it will increase the level of involvement, which will have other effects, such as increasing government responsiveness and accountability in the use of public resources.
  3. Enhancing transparency. This can stimulate public debate and affect people’s perceptions of the fiscal system. In order to obtain this result, government campaigns aimed at diffusing information about the main features of policies realised are particularly useful, as are interventions to improve the monitoring and evaluation system.

Political technologies and disinformation around the globe

DIIS - Wed, 01/08/2020 - 15:26
Technological challenges to democracy, peace and development

Colombia – lang og usikker vej til fred

DIIS - Wed, 01/08/2020 - 13:40
Udfordringer i gennemførelse af fredsaftalen

Bauwirtschaft wächst stärker als die deutsche Gesamtwirtschaft

Zusammenfassung:

Bauwirtschaft wird in diesem und im nächsten Jahr nominal um mehr als sechs Prozent, real um rund drei Prozent zulegen – Eckpfeiler des Aufwärtstrends bleibt der Wohnungsbau, 2019 hat vor allem der Neubau kräftig zugenommen – Politik sollte langfristige Investitionsanreize setzen und Genehmigungsverfahren straffen

Die Bauwirtschaft ist und bleibt eine Stütze der Konjunktur in Deutschland. Im Jahr 2019 ist das Bauvolumen nominal um 8,7 Prozent im Vergleich zum Vorjahr gestiegen. In diesem und im kommenden Jahre dürften die Umsätze des Baugewerbes und seiner angrenzenden Bereiche nominal um rund 6,5 Prozent beziehungsweise knapp sechs Prozent zulegen. Zu diesem Ergebnis kommen die Berechnungen des Deutschen Instituts für Wirtschaftsforschung (DIW Berlin) zum Bauvolumen in Deutschland.


Likvideringen af Qassam Soleimani

DIIS - Tue, 01/07/2020 - 17:01
I stedet for at skabe fred, har USA’s likvidering af den iranske general øget risikoen for en ny krig i Den Persiske Golf

A Peacekeeper in Africa: Learning from UN Interventions in Other People’s Wars

European Peace Institute / News - Tue, 01/07/2020 - 17:00

For more than seven decades, UN peacekeeping operations have fulfilled an essential role in managing international crises. Alan Doss has spent a decade at the highest levels of UN peacekeeping in Sierra Leone, Côte d’Ivoire, Liberia, and the Democratic Republic of the Congo. At a moment when peacekeeping faces enormous challenges, both politically in the Security Council and operationally on the ground, it is worth reflecting on the successes and failures of the past, and on the insights they may offer for UN peace operations today.

Looking back on his years with the UN, Doss provides a firsthand account of the operations he led. The frustrations he recounts are valuable both as history and for what they tell us about the limits of peacekeeping. The successes and satisfactions he relays are valuable for their reminder of the UN’s ability to rise above its limitations and the important contribution it makes to peace.

A Peacekeeper in Africa is a joint project of the International Peace Institute and Lynne Rienner Press.

See more about the book from Lynne Rienner Press.

Contents

  • Foreword—Terje Rød-Larsen
  • A Journey in Peacekeeping

THINGS FALL APART: WEST AFRICAN WARS

  • Sierra Leone: The Search for Peace
  • Côte d’Ivoire: The War of Succession
  • Liberia: From War to Peace

WARS WITHOUT WINNERS: PEACEKEEPING IN THE CONGO

  • Into the Cauldron: Congo Past and Present
  • Crisis Without End: The Kivu Wars
  • The Contagion of Conflict: Other Places, Other Wars
  • Pursuing Peace: Stabilization, Peacebuilding, and Transition

OUT OF THE SHADOWS: THE PROMISE OF PEACE

  • Great Expectations: Intervention and Its Conceits
  • Pipe Dreams and Possibilities: Navigating Pathways to Peace

MOVING FORWARD: PEACEKEEPING TODAY AND TOMORROW

  • A Job Like No Other: Leading Peacekeeping Missions
  • Facing the Future: Actions for Peace

Ending China’s hostage diplomacy

DIIS - Tue, 01/07/2020 - 13:54
Democracies can stand together against Beijing’s aggression

DIW-Studie zu Berlin: Mordrate auf OECD-Basis unplausibel, Kernaussagen des Berichts bleiben aber bestehen

Zusammenfassung:

Studie zur Situation Berlins im Vergleich zu anderen europäischen Hauptstädten muss eventuell an einer Stelle geändert werden – Offizieller OECD-Statistik für einen der 35 Einzelindikatoren (Mordrate) liegen möglicherweise fehlerhafte Daten zugrunde – Ohne Einbeziehung der Mordrate steigt Berlin bei der Lebenszufriedenheit von Platz 10 auf Platz 8

Am 20. Dezember 2019 hat das DIW Berlin gemeinsam mit der Bertelsmann Stiftung eine Studie mit dem Titel „Berlin auf dem Weg ins Jahr 2030“ veröffentlicht. In dieser Studie wurde analysiert, wie weit die deutsche Hauptstadt bei der Umsetzung seiner BerlinStrategie fortgeschritten ist. In acht Kategorien (Technologie, Talent, Mobilität, Nachhaltigkeit, Toleranz, Teilhabe, Lebenszufriedenheit, Administration) wurde untersucht, wo Berlin steht und wohin es sich in den vergangenen Jahren entwickelt hat. Demnach hat sich Berlin in sieben der acht Kategorien verbessert, nur bei der Administration deuten die Indikatoren auf eine Verschlechterung der Lage in der Hauptstadt seit Ende der 2000er Jahre hin. Besondere Stärken hat Berlin im Bereich Technologie.


The impact of remote surveillance in Iraq

DIIS - Mon, 01/06/2020 - 09:22
A tool of coercion or public security

The impact of remote surveillance in Iraq

DIIS - Mon, 01/06/2020 - 09:14
A tool of coercion or public security

Jonas Jessen erhält den BeNA Innovative Research Award

Jonas Jessen, Doktorand am DIW Graduate Center und wissenschaftlicher Mitarbeiter in der Abteilung Bildung und Familie, hat den BeNA Innovative Research Award 2019 gewonnen. Wir gratulieren Jonas für die Auszeichnung, die jährlich vom Berliner Netzwerk für Arbeitsmarktforschung (BeNA) für herausragende wissenschaftliche Beiträge verliehen wird.

Für sein Paper mit dem Titel „A Firm-Side Perspective on Parental Leave Absences“, das er zusammen mit Mathias Huebener, Daniel Kuehnle und Michael Oberfichtner erarbeitet hat, wurde Jonas im Rahmen des BeNA Winter Workshops im November 2019 ausgezeichnet. Inhalt des Papers ist die Auswirkung der Inanspruchnahme von Elternzeit auf Unternehmen und KollegInnen.


Danske soldater går ind i Frankrigs kamp mod terror

DIIS - Sat, 01/04/2020 - 00:43
Konflikterne i Sahel kan ikke løses militært

Danske soldater går ind i Frankrigs kamp mod terror

DIIS - Sat, 01/04/2020 - 00:43
Konflikterne i Sahel kan ikke løses militært

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