Fragile States 2014: Domestic Revenue Mobilisation in Fragile States

THIS IS A CRUCIAL TIME FOR FRAGILE STATES. They are the ones furthest away from the Millennium
Development Goals. They will be home to more than half of the world’s poor after 2018. Yet the aid
they receive is shrinking, and they have limited access to alternatives for financing development such as
remittances and foreign direct investment. The domestic revenues they raise are not enough. Evidence
in this report suggests that fragile states mobilise less than 14% of their GDP in tax revenues – a level the
United Nations deems to be inadequate to achieve the Millennium Development Goals. Yet accountable
tax systems are perhaps more crucial in fragile states than anywhere else. Domestic revenues are not
only a way out of aid dependency – they are important for building mutual accountability between citizens
and states.

The 2014 Fragile States report is a wake-up call for development co-operation providers: it is time to invest
more in the capacity of fragile states to mobilise their own revenue to support statebuilding and peace.