The ATI Study on Donor Coordination in Domestic Revenue Mobilisation explores the need for donor coordination in the field of international support for domestic revenue mobilisation (DRM). It was commissioned by the International Tax Compact, with funding from the Germany Ministry for Economic Cooperation and Development (BMZ) and the European Commission.
The study supports the work of the Addis Tax Initiative (ATI) by reviewing DRM coordination mechanisms and assessing currently unmet coordination needs for DRM financing and support at both the international and national levels. The desk-based study draws on publicly available literature and data, supported by telephone interviews with a selection of ATI members and partners. Basic country case studies of donor coordination for DRM were also undertaken in Afghanistan, Ghana and Uganda.
The report identifies key international coordination challenges such as: the confusion resulting from a proliferation of DRM diagnostic tools, a limited evidence base of what works in DRM reform and DRM support, a lack of reflection on the political economy challenges to DRM reform, and the possibility of unfair or inefficient allocations of DRM support.
At the country level, challenges include harmonisation of funding, DRM strategies that are not currently strong enough to support donor alignment, a lack of internationally agreed metrics of DRM progress, and a lack of strong results frameworks for national DRM strategies.
Various recommendations for both the ATI and it's members are presented, with an emphasis on country allignment, ownership and harmonisation of DRM support.
Please click here to download the executive summary of the study.