Taxation and Income Inequality in Sub-Saharan Africa: A Historical Comparative Analysis

The project identifies conditions that promote or hinder more effective use of tax revenue for reducing income inequality in sub-Saharan using a historical-comparative approach.

We explain differences in the role of taxes in reducing inequality across time and space and offer strategies that are more likely to stimulate wider development gains from taxation.

The primary contribution and originality of the project is the study of power relationships and how different capacities for collective action shape the inequality-alleviation effects of taxes from the colonial era to the present.The project consists of one postdoctoral researcher and two senior researchers and is conducted over four years.

Eight African countries are included for which we have already collected and/or have access to much of the requisite data.

For each country we conduct an econometric analysis of the relationship between taxes and income distribution and differences in the performance of fiscal policy.

We then proceed to construct historical analytical narratives of the political economy of taxation to identify context specific factors that underpin the relationship between taxation and income inequality.The project will provide a solid analysis that will be instrumental for donor agencies, policy makers and civil society actors who are today looking for the best way to translate increased taxation into more inclusive and sustainable development.