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Aid effectiveness
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==== Reducing the accountability of governments ==== Revenue generation is one of the essential pillars for developing [[state capacity]]. Effective taxation methods allow a state to provide public goods and services, from ensuring justice to providing education.<ref>{{Cite journal|last=Bräutigam|first=Deborah|date=2002|title=Building Leviathan: Revenue, State Capacity and Governance|url=https://deborahbrautigam.files.wordpress.com/2013/04/2002-building-leviathan.pdf|journal=IDS Bulletin|volume= 33| issue = 3|pages=1–17|doi=10.1111/j.1759-5436.2002.tb00034.x}}</ref> Taxation simultaneously serves as a government accountability mechanism, building state-citizen relationships, as citizens can now expect such service provisions upon their consent to taxation. For developing and fragile states that lack such revenue capabilities, while aid can be a seemingly necessary alternative, it has the potential to undermine institutional development. States that rely on higher percentages of aid for government revenue are less accountable to their citizens by avoiding the state-citizen relationships that taxation builds and face fewer incentives to develop public institutions.<ref>{{Cite news|url=https://www.cgdev.org/publication/aid-institutions-paradox-review-essay-aid-dependency-and-state-building-sub-saharan|title=An Aid-Institutions Paradox? A Review Essay on Aid Dependency and State Building in Sub-Saharan Africa- Working Paper 74|work=Center For Global Development|access-date=2017-05-17|language=en}}</ref> The limited government capacity resulting from subpar institutional presence and effectiveness leads to: “ubiquitous corruption of state officials, large gaps between the law and actual practice in business regulation, workers who do not even show up, doctors that do not doctor, teachers who do not teach.”<ref>{{Cite journal|last1=Pritchett|first1=Lant|last2=Woolcock|first2=Michael|last3=Andrews|first3=Matt|date=2013-01-01|title=Looking Like a State: Techniques of Persistent Failure in State Capability for Implementation|journal=The Journal of Development Studies|volume=49|issue=1|pages=1–18|doi=10.1080/00220388.2012.709614|s2cid=14363040|issn=0022-0388|url=https://www.hks.harvard.edu/sites/default/files/centers/cid/files/publications/faculty-working-papers/239_PritchettWoolcockAndrews_Looking_like_a_state_final.pdf}}</ref> In the view of [[James Shikwati]], aid in Africa sustains political elites who implement a colonial or neo-colonial agenda of subsidy and distortion of markets which holds African countries back.<ref name=":4">{{cite journal|last=Shikwati|first=James|year=2006|title=The Future of Africa in the World|url=http://www.irenkenya.com/modules/articles/index.php?article_title_id=18|url-status=dead|journal=Inter Region Economic Network|pages=6|archive-url=https://web.archive.org/web/20130617124226/http://www.irenkenya.com/modules/articles/index.php?article_title_id=18|archive-date=2013-06-17}}</ref>
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