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Accepted Paper:
Cash transfers, informal taxation, and community participation: Evidence from south-central Somalia
Vanessa van den Boogaard
(International Centre for Tax and Development)
Michael Walker
Fabrizio Santoro
Paper short abstract:
Using a randomized controlled trial in south-central Somalia, this paper investigates whether social protection programs can increase participation in community-driven development programs and examine how this affects state-citizen relations.
Paper long abstract:
We investigate whether social protection programs can increase participation in community-driven development programs and examine how this affects state-citizen relations. Using a randomized controlled trial in south-central Somalia, we study the impacts of an unconditional cash transfer program to vulnerable households that was designed specifically to encourage participation in community development. We collect survey data before and after the intervention with almost 600 individuals eligible to receive cash transfers. We find no substantial differences in welfare or participation in community development projects for cash transfer recipient households relative to vulnerable non-recipient households. However, we do find positive impacts of the cash transfers on citizen perceptions of non-state community leaders and the local government, despite the local government playing no direct role in the social protection program. Our findings suggest that relatively small social protection interventions may face challenges in increasing vulnerable households’ participation in community development and decision-making, while also highlighting potential positive spillover effects for state-citizen relations in contexts with weak formal institutions.