The Taxing Challenges of the State: Unveiling the Role of Fiscal & Administrative Capacity in Development

Abstract

During the past two decades, several factors have challenged the stability of national states, adding tensions to the connection between the state and the individual. This paper reviews the literature on state capacity. First, it introduces the origin of the literature and presents the well-established positive correlation between state capacity and economic development. Second, it touches upon fiscal and administrative capacity and conflict. It concludes with a provocative reflection on digital nomads to push the research frontier in analysing the connection between the state and the individual.