in: Santiago López-Cariboni (ed.) / Editor-in-chief: Edward D. Mansfield / Nita Rudra, The Political Economy of the BRICS Countries, Volume 3: Political economy of informality in BRIC countries, London: World Scientific Publishing, 31-51
Financing for development requires developing countries to step up their domestic revenue mobilization. Such key international players as the Organization for Economic Co-operation and Development (OECD), G20 and International Monetary Fund (IMF) are calling on the developing countries to increase their tax collection. BRICs are particularly interesting cases to analyse in this regard. From a growth perspective the experience of the BRICs can be considered a success story, but did the BRICs use this expanded revenue potential? Did it affect which tax instruments they rely stronger on and thereby affect their tax composition? Also, which challenges did they encounter and which challenges do they still face? In this context informality and how to deal with it as well as from a broader sociopolitical perspective the question of how do develop and strengthen the fiscal contracts in this countries appear major challenges ahead.