Democracies in Peril Taxation and Redistribution in Globalizing Economies

• Main Authors: Bastiaens, Ida (Author), Rudra, Nita (Author)
• Format: Book
• Language: English
• Published: New York Cambridge University Press 2018
• Subjects: Taxation > Developing countries; Democracy > Developing countries; Free enterprise > Developing countries; Finance, Public > Developing countries; Developing countries > Politics and government; Developing countries > Economic conditions
• Online Access: Click Here to View Status and Holdings.
• Item Description: Includes index
• Physical Description: xvii, 326 pages illustrations 24 cm
• Bibliography: Includes bibliographical references (pages 275-318) and indexes
• ISBN: 9781108470483; 9781108454889

Globalization is triggering a 'revenue shock' in developing economies. International trade taxes - once the primary source of government revenue - have been cut drastically in response to trade liberalization. Bastiaens and Rudra make the novel argument that regime type is a major determinant of revenue-raising capacity once free trade policies have been adopted. Specifically, policymakers in democracies confront greater challenges than their authoritarian counterparts when implementing tax reforms to offset liberalization's revenue shocks. The repercussions are significant: while the poor bear the brunt of this revenue shortfall in democracies, authoritarian regimes are better-off overall. Paradoxically, then, citizens of democracies suffer precisely because their freer political culture constrains governmental ability to tax and redistribute under globalization. This important contribution on the battle between open societies and the ability of governments to help their people prosper under globalization is essential reading for students and scholars of political economy, development studies and comparative politics.