The World Bank welcomes France as a new partner in the Global Tax Program (GTP). This collaboration is part of the French strategy on cooperation around domestic resource mobilization (DRM) in developing economies, which was launched on June 23, 2020.
On September 30, 2020, senior representatives of the French Ministry of Finance and the World Bank’s Global Tax Program signed an agreement for EUR 5,500,000 to support developing countries’ efforts in mobilizing domestic revenues. This support will mainly help in addressing the impact of the pandemic and rebuilding a better path to achieve the Sustainable Development Goals. While the Global Tax Program’s portfolio is global in nature, France’s contribution will enable further funding for countries in Sub-Saharan Africa, namely Mauritania, Mali, Niger, Chad, Central African Republic, Cameroon, Sudan, Benin, Togo, Burkina Faso, Ivory Coast, Guinea, Guinea Bissau, Senegal, and Gambia.
The agreement signed with France is part of the broader support for the GTP, which was launched in September 2017. The Global Tax Program leads an ongoing program of activities at both global and domestic levels focused on strengthening tax institutions and mobilizing revenues. It aims to enhance opportunities for coordination with other relevant stakeholders, including donors, civil society organizations and academic and research institutions. The French contribution will also support low income countries in the adoption of broader fiscal policy measures as a rapid response to the COVID-19 crisis.
Domestic revenue mobilization is crucial for helping countries rebuild a more resilient, inclusive, sustainable and fairer growth path. The GTP has a two-pronged approach in doing so: helping countries to raise revenues on one side and designing tax systems that promote inclusivity, good governance and social justice on the other.
Currently, eight donor partners (Australia, Denmark, Japan, Luxembourg, the Netherlands, Norway, Switzerland and United Kingdom) contribute to the GTP. The program’s total budget for fiscal years 2018-2024 is USD 72 million.