Expanding the Frontier of Taxation

Join us for an in-depth discussion on the future of taxation in emerging markets and developing economies (EMDEs). The event, organized by the World Bank Group Institute for Economic Development and the Einaudi Institute for Economics and Finance (EIEF) will explore insights from the upcoming World Bank Policy Research Report on Domestic Revenue Mobilization: "Expanding the Frontier of Taxation: Technology, Transparency, and Trust."

The report takes stock of the state of taxation in emerging markets and developing economies and provides a new framework for strengthening tax systems. It argues that most EMDEs remain far from the “public finance frontier,” where trade-offs between efficiency, equity, and revenue adequacy are binding. Instead, these countries have scope to advance simultaneously across all three dimensions.

Drawing on a collection of data sources and evidence, the report highlights four central messages:

• Tax systems in EMDEs suffer from widespread inefficiencies, inequities, and stagnant revenues
• Well-designed reforms can improve efficiency, equity, and adequacy at the same time
• New forces like technology, transparency, and trust, are redefining the frontier and creating opportunities for leapfrogging
• Governments should rely on frameworks such as the marginal value of public funds (MVPF), informed by administrative data and rigorous policy evaluation, to guide revenue decisions rather than adopting one-size-fits-all targets.

The event will provide an opportunity to discuss these advances in the global tax debate, showcase insights from country experiences, and reflect on how better evidence can shape more effective and equitable Domestic Revenue Mobilization strategies in EMDEs.

• Agenda