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Ending aid dependency through tax: emerging research findings

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Aid continues to play an important role helping developing countries reduce poverty and inequality, and attaining global and national development goals. Though efforts to increase its quality and effectiveness must be accelerated, it will be vital to maintain aid flows. However, excessive aid dependence (relying on aid for a third or more of government spending) undermines policy autonomy; accountability and responsiveness to national citizens, and delivery of priority services by government. It also interferes with longterm planning and predictability of government spending. Reducing dependence can therefore improve development results if done in a way that ensures equitable and sustainable development.