Global Dimensions of Public Administration and Governance: A Comparative Voyage

CHAPTER TEN

TRADITIONAL GOVERNMENT ACTIVITIES II

Economy, Finance, and Taxation Systems

In this chapter we add another traditional set of government activities to our comparative discussion—the one dealing with the financial and economic side of administration and government.

For most of history, government economy and finance were centralized and in the hands of rulers. Most economic activity was financed based on indirect taxes and taxes in labor and in kind. Modern governments are predominantly financed on the basis of direct taxes, but there is variation across countries. Also, there is variation in the degree to which subnational governments have latitude to raise revenue as they are dependent upon national governments. With regard to developments ...