Written by Andrew Wainer, Director Policy Research and Nada Adibah, Intern, Policy Research
The percentage of DRM assistance disbursed through civil society and NGO channels surged among Addis Tax Initiative (ATI) members in recent years. In 2015, 4% (6 million) of ATI DRM assistance was channeled through civil society, but in 2017 that increased to 10% (21 million). Furthermore, the amount of DRM disbursed through NGOs and civil society, grew 252%, the most among all channels (see Table 1).
While seven of the 20 ATI donors contributed to this increase, it was primarily driven by three donors: Norway, the United Kingdom, and the United States which had large increases in the amount of DRM assistance channeled through civil society between 2015 and 2017.
Table 1: Percent Change DRM Disbursements Channel, 2015 to 2017
|NGOs & Civil Society||252|
|Public-Private Partnerships (PPP)||186|
|Teaching Institutions, Research Institutions, Think-Tanks||61|
|Private Sector Institutions||77*|
* OECD CRS values reported only for years 2016 and 2017. Percent change calculated from these two years.
This assistance channeled through civil society ranged from grants from the United Kingdom to research institutions to study tax policy in Ghana and Ethiopia to assistance from Norway to support media oversight of the petroleum industry in Tanzania and Uganda.
But even as ATI members increasingly use civil society to disburse DRM assistance, a review of the 2017 OECD Creditor Reporting System data reveals an increase in overall DRM assistance from ATI donors of only 14% from 2015 to 2017 (the latest year available). The total amount of DRM assistance from ATI donors increased from $168 million in 2015 to $192 million in 2017.
The increase in the use of civil society as a channel for DRM assistance is welcome, but as donors, civil society, and developing nation revenue authorities prepare to gather in Berlin in July to review progress on the ATI, the latest OECD data reveal that, while ATI DRM assistance is growing, it is not on pace to reach ATI commitment #1: A collective doubling of donor DRM assistance. Increasing donor support to civil society for engagement in tax policy can foster enhanced governance while also contributing to ATI donors’ goal of doubling DRM assistance by 2020.
US DRM Assistance
The latest OECD data also reveals that US DRM foreign assistance is increasing at a faster rate than the overall rate for ATI members. In 2017, the United States disbursed $48 million for DRM support. This is a 26% increase since 2015, when the US provided $38 million.
Also aligned with the overall ATI trend of increasing percentages of DRM aid being channeled through NGOs and civil society, US DRM foreign assistance was increasingly channeled in this way – at a rate similar to ATI donors overall. Of the $48 million in DRM disbursed by the United States in 2017, 10% (4.8 million) was funneled to civil society, larger than the overall donor rate of disbursing 7% through this channel. This amount is a major increase in using civil society and NGOs for US DRM assistance when compared with 2016 when the US recorded channeling $192,000 – a tiny percentage of its total DRM assistance – through civil society.
DRM Assistance from the Perspective of Recipient Countries
Of the $192 million in DRM assistance ATI donors provided to the developing world in 2017, Africa received the most among any region with $91 million going to DRM – 47% of all ATI DRM assistance. Asia received second largest amount of DRM assistance with $37 million – 19% of all DRM assistance in 2017. Latin America, Europe, and Oceania received much small percentages of DRM assistance (see Table 2).
Table 2: DRM Assistance Provided to the Developing World in 2017
|Region||Amount Received (in millions USD)||Percent of Total DRM Assistance|
|Developing country, unspecified||35||18%|
Save the Children has supported civil society engagement in DRM in Wajir and Bungoma counties, Kenya since early 2017. In recent years Kenya has experienced a surge in DRM funding. In 2017 Kenya received $8.8 million in DRM assistance, an increase of more than 105% compared to 2015 when it received $4.3 million. The large majority of DRM assistance to Kenya is also being channeled through civil society and NGOs. In 2017 $6.5 million of DRM assistance to Kenya – 74% – was provide through this channel.
ATI is moving slowly toward its collective goal of doubling DRM assistance by 2020, but we are encouraged by the increasing role that civil society is playing in DRM– enabling citizens to engage on tax policy and, ideally, hold policymakers accountable for good fiscal governance. Ensuring that developing country ministries of finance and revenue authorities are also meeting their commitments and opening up to citizen input on tax policy will be key to the ATI’s long term success. We also welcome the creation of the ATI database, currently under construction, which will allow for new ways of analyzing and measuring DRM foreign assistance.
In future posts, we will delve into the details and nuances of DRM assistance going through civil society channels in order to better understand where this surge of funding is going, who it’s coming from, and the reason for its rapid increase.