draining development.pdf - Khazar University

98 Draining Development40. The Nation, Lilongwe, Malawi, April 27, 2000, page 5.41. Otherwise, high nominal taxes tend to produce considerable tax evasion, includingthe unrecorded activity of the shadow economy (Schneider and Enste 2000).42. While some authors have claimed there is causation, Friedman et al. (2001) arenot able to find evidence of a negative effect of taxes on the size of the shadoweconomy. No study has adequately addressed taxpayer perceptions of taxationnot as a burden, but as an investment in the political settlement to tackle weakinstitutions and fund an effective state.43. By 1997, under the pressure of the International Monetary Fund, the incomesubject to the highest marginal rate had been substantially reduced, but it wasstill at the remarkable level of 104 times the average per capita income (Shome1999).44. Measurements of tax effort and tax-GDP ratios are notoriously problematic,but, in the absence of other clear indicators, remain the most widely used basisfor cross-country comparisons.45. Thus, Belgium has far greater evasion rates than the Netherlands (Nam, Parsche,and Schaden 2001).46. By contrast, one of the lowest rates in the world is in Afghanistan, where thegovernment, in 2008, raised only 6.4 percent of national income, or US$750million, in national revenue across a population of 25 million.47. International Monetary Fund data for 2007. See Le, Moreno-Dodson, and Rojchaichaninthorn(2008) on tax effort variation.48. For example, for Pakistan, see World Bank (2004).ReferencesAbinales, P. N., and D. J. Amoroso. 2005. State and Society in the Philippines. State &Society, East Asia Series. Oxford: Rowman & Littlefield.Aljaaidi, K. S. Y., N. A. A. Manaf, and S. S. Karlinsky. 2011. “Tax Evasion as a Crime:A Survey of Perception in Yemen.” International Journal of Business and Management6 (9): 190–201.Alm, J., and J. Martinez-Vazquez. 2003. “Institutions, Paradigms, and Tax Evasion inDeveloping and Transition Countries.” In Public Finance in Developing andTransitional Countries: Essays in Honor of Richard Bird, ed. J. Martinez-Vazquezand J. Alm, 146–78. Studies in Fiscal Federalism and State-Local Finance Series.Cheltenham, U.K.: Edward Elgar.Andreoni, J., B. Erard, and J. Feinstein. 1998. “Tax Compliance.” Journal of EconomicLiterature 36 (2): 818–60.Barra, P., and M. Jarratt. 1998. “An Analysis of the Chilean Tax System.” Report, Divisionof Studies, Servicio de Impuestos Internos, Santiago, Chile.Bayart, J.-F., S. Ellis, and B. Hibou. 1999. The Criminalization of the State in Africa.African Issues. Oxford: James Currey; Bloomington, IN: Indiana University Press.