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UNU-WIDER Postconflict Countries: Strategy for Rebuilding Fiscal Institutions

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A teenager wears torn rubber boots in a muddy local market in Bac Ha, Viet Nam. As of 2005 figures, half the world population—more than 3 billion people–is estimated to live on less than USD 2.50 a day. Bac Ha, Viet Nam. UN Photo/Kibae Park.

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Postconflict Countries: Strategy for Rebuilding Fiscal Institutions

This paper reviews the challenges and experiences in rebuilding fiscal institutions in postconflict environments, based on advice from the IMF's Fiscal Affairs Department to selected countries. The recommended strategy involved a three-step process of (i) creating a proper legal framework for fiscal management, (ii) establishing a central fiscal authority and a mechanism for co-ordinating foreign assistance, and (iii) designing appropriate tax policies while simultaneously creating simple tax administration and expenditure management arrangements. The advice was tailored to the circumstances of postconflict countries, and in some cases involved transitional measures that were not first best from an efficiency standpoint. In a similar vein, recommendations on revenue administration and expenditure management focused on the most basic tasks and procedures. In providing advice, care was taken to ensure that these measures were consistent with the eventual transformation to a modern fiscal management system.
Publisher:
UNU-WIDER
Series:
WIDER Research Paper
Volume:
2007/41
Title:
Postconflict Countries: Strategy for Rebuilding Fiscal Institutions
Authors:
Sanjeev Gupta, Shamsuddin Tareq, Benedict Clements, Alex Segura-Ubiergo, and Rina Bhattacharya
Publication date:
June 2007
ISSN Web:
1810-2611
ISBN Web:
929190984X
ISBN 13 Web:
9789291909841
Copyright holder:
© UNU-WIDER
Copyright year:
2007
Keywords:
fiscal policy, tax, institutions, conflict
JEL:
H30, K34, O43
Project:
Making Peace Work: Conflict and Post Conflict Societies
Sponsor:
The project was supported by the Finnish Ministry for Foreign Affairs.
Format:
online

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