Taxation and governance are inextricably linked.

It's not a world shattering statement, and something that has been understood for some time, but the extent to which one can effect the other in positive, or negative, ways perhaps hasn't been fully appreciated until recently. Research done by the Centre and a range of other organsations is showing just how closely linked taxation and governance are and development policy is changing too.

This changing attitude and the growing interest in taxation as a driver of good (and bad) governance and provider of sustainable income for development in the worlds poorer countries is well illustrated by Angel Gurria's remarks at the 2008 Doha Conference.

“…. I see three compelling reasons for putting taxation at the centre of the domestic financial resource agenda. First, taxes provide the long term financial platform for sustainable development. Taxes are the lifeblood of state services. Second, taxation matters for effective state-building. Bargaining between governments and taxpayers plays a central role in the emergence of democratic governance... Third, taxation combined with economic growth is the antidote to long term reliance on aid. As my friend Trevor Manuel has famously said, the correct spelling of the word ‘aid’ is ‘T-A-X’.”

The puropse of these pages will be to track the latest developments in research and policy around the issues of taxation. These will include taxation as a source of funding for development, taxation as a driver of governance both good and bad and the effects that international systems and policies have on taxation, governance and development (capital flight and tax havens for example).