New Evidence that Citizen Engagement Increases Tax Revenues


Tiago Peixoto at DemocracySpot: “…A new working paper published by Diether Beuermann and Maria Amelina present the results of a randomized experiment in Russia, described in the abstract below:

This paper provides the first experimental evaluation of the participatory budgeting model showing that it increased public participation in the process of public decision making, increased local tax revenues collection, channeled larger fractions of public budgets to services stated as top priorities by citizens, and increased satisfaction levels with public services. These effects, however, were found only when the model was implemented in already-mature administratively and politically decentralized local governments. The findings highlight the importance of initial conditions with respect to the decentralization context for the success of participatory governance.

In my opinion, this paper is important for a number of reasons, some of which are worth highlighting here. First, it adds substantive support to the evidence on the positive relationship between citizen engagement and tax revenues. Second, in contrast to studies suggesting that participatory innovations are most likely to work when they are “organic”, or “bottom-up”, this paper shows how external actors can induce the implementation of successful participatory experiences. Third, I could not help but notice that two commonplace explanations for the success of citizen engagement initiatives, “strong civil society” and “political will”, do not feature in the study as prominent success factors.  Last, but not least, the paper draws attention to how institutional settings matter (i.e. decentralization). Here, the jack-of-all-trades (yet not very useful) “context matters”, could easily be replaced by “institutions matter”….(More). You can read the full paper here [PDF].”