The Precarious State of Public Finance

To decrease their dependency on rich countries and achieve long-term development, poor countries must raise revenue domestically. In this paper, author Jens Martens looks at a range of different obstacles that prevent governments of poor countries from raising sufficient public revenue and spending it on development. For example, governments of rich countries pressure poor countries to liberalize trade, thus reducing customs revenues. Also, ineffective tax systems exempt transnational corporations, landowners and rich individuals from paying taxes to poor countries. (Global Policy Forum, DGB Bildungswerk, terre des hommes )