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Accepted Paper:
Paper short abstract:
In this paper, we make use of unique datasets to consider the role of impacts of informal contributions during times of crisis in Sierra Leone and Rwanda, with a particular emphasis on the implications for equity and fairness.
Paper long abstract:
Bottom-up responses to the Covid-19 pandemic have been critical in supporting some of the most vulnerable groups throughout the crisis and have often served as powerful symbols of solidarity. There has been less attention paid, however, to the implications of shifting the burdens of crisis relief and social welfare provision downward to already vulnerable populations. We consider the role and impact of informal contributions in two small African countries, Rwanda and Sierra Leone, that differ in substantial ways, including income, strength of traditional authorities in public governance and life, and centralization of the state. To do so, we make use of unique datasets tracking informal tax contributions and taxpayer perceptions over the span of a year during the Covid pandemic (March 2020 to February 2021). Three key findings emerge consistently despite the major differences in the contexts. First, informal contributions are important in times of crisis, filling important gaps left by insufficient state relief. Second, informal contributions are regressive, representing a higher share of income for lower income compared to higher income groups. Third, despite being regressive, citizens largely perceive them as fair. We speculate that this is a result of a combination of their embeddedness in local norms and informal institutions, the visibility of the publics goods financed through informal contributions, and a heightened sense of national solidarity during the pandemic. These findings have important implications for our understandings of local perceptions of the fairness of informal financing mechanisms and broader citizen expectations of the state.
Non-state social welfare and public goods provision: Development, inequality, and redistribution beyond the state
Session 1 Friday 28 June, 2024, -