Controlling Fiscal Corruption

It has been widely observed that insufficient domestic resource mobilization is at the root of the adjustment and growth problems faced by many countries, including especially those transiting to a market economy. To remedy this situation the basic strategy has relied on reforming the design of taxes and expenditures and their administration. The often less than satisfactory outcome of this strategy has led to a growing perception that corruption and its corrosive effects on fiscal performance should also be addressed.2