National financing for development

Team
The National financing for development program deals with all issues related to the capacity to mobilise domestic resources and the effectiveness of public policies in developing countries.

FERDI's work focuses on three complementary areas:

Taxation for development. FERDI's work examines the capacity of developing countries to mobilise domestic public resources. In particular, FERDI is involved in assessing the tax expenditures and the tax burden of certain economic sectors (extractive industries, telecommunications), the connection between tax and customs policies, and their role in the regional integration process. FERDI is also interested in the taxation of international aid and tax incentives for investment. This work is in line with the 2030 Agenda, whose objective 17.1 is to “enhance, including through international assistance to developing countries, domestic resource mobilisation to strengthen national capacity to raise taxes and other revenues”.

 Financial Structures for Development. FERDI’s work in partnership with the Bank of France aims to  determine the role of the financial system in development. Particular attention is paid to the relationship between finance and climate, the economic and financial digitalization of economies, the competitiveness of economies, the development and stability of financial systems, and economic and monetary integration.

 Macroeconomics of development. FERDI works with CERDI on exchange rate policy issues. Particular attention has been paid to the issue of the CFA franc and the Eco and to the conduct of macroeconomic policy in the context of monetary unions. FERDI advocates a scientific and dispassionate look at possible and desirable developments in African monetary systems.

On these themes, FERDI works in collaboration with researchers from the Centre for Studies and Research on International Development (CERDI/UCA), the Banque de France, the Public Financial Department of the IMF, the ICTD, CREDAF and the French General Directorate of Public Finances (DGFIP).

Achievements 2021-2022

Support to tax administrations for the evaluation of tax expenditures. In 2021, FERDI supported the Togolese Revenue Office (OTR) in the preparation of its first tax expenditure evaluation report for the year 2020 and the Cameroonian General Tax Directorate in the review of its tax expenditure evaluation and impact analysis report.

Training on taxation of extractive industries. FERDI, through the Institute for Advanced Studies in Sustainable Development (IHEDD) regularly delivers online tutored training courses on the sharing of mining rents and on oil taxation. These training courses are based on FERDI’s African Mining Tax Database, the first legal and fiscal database to identify the tax regime applying to industrial gold mines in 22 African producer countries. This database is accompanied by a tool for simulating the sharing of mining rents between a State and investors.

Participation in the DATAFID project. This project financed by the French Treasury and implemented by Expertise France aims to: 1. improve knowledge of the digital economy and its impacts, 2. strengthen the capacities of tax and customs administrations through better use of data science. FERDI, through the Institute for Advanced Studies in Sustainable Development (IHEDD), is participating in the project to create a suitable, complete, training offer.

Facilitation of the French Inter-ministry Exchange and Coordination Platform on the Mobilisation of Domestic Public Resources (MRIP). Since 2020, FERDI has been mandated to lead this platform, which is a support for information and coordination of French operators in the framework of the implementation of the French strategic investment plan  for development (PISD).

Determining the tax burden of mobile network operators in Africa.  CERDI, in partnership with FERDI, is developing an application in R-Shiny for the determination of the tax burden of mobile network operators in Africa

Analysis of African Financial Systems for Development. FERDI is developing two research programs on African financial systems. A first program analyses the effect of changes in African financial systems on access to credit for businesses and households in collaboration with researchers from the University of Strasbourg/Proparco-AFD. A second program analyses the relationship between the risky environment in which African actors operate (health and political risks) and the use of financial tools.

Macroeconomic support to the European Union. In December 2021, FERDI's experts made a commitment to the Budget Support Division of the European Union (EU) Commission's International Partnerships Directorate of macroeconomic support for the year 2022.

Study of the quality of public spending. FERDI is collaborating with CERDI to provide a tool for analysing and measuring the efficiency of public spending. The application is accompanied by a user’s guide “L'efficacité de la dépense publique: mesure et determinants” (“The quality of public spending in the world: measurement and determinants”).

Program in partnership with CERDI

CERDI-Université Clermont Auvergne – © Cerdi

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