IMPORTANCE OF INTERNATIONAL COOPERATION IN MOBILIZING AND DEVELOPING DOMESTIC FINANCIAL RESOURCES OF THE STATE

Abstract

Many of the obstacles that Governments face in developing countries in effectively managing domestic financial resources are due to structural conditions and related development problems. For example, a high concentration of wealth and high inequality of income are often associated with political processes and the weakening of the rule of law. Similarly, dependence on the exploitation of natural resources can lead to unpredictability and instability in the structure of public revenues, which limits the ability of the state to plan and maintain the level of investment consistent with long-term development goals. Measures aimed at strengthening the public financial management system and, therefore, mobilizing domestic public resources should be carried out taking into account these various problems, often of a structural nature. Important for the success and effectiveness of tax reforms in most developing countries is the recognition that the development of administrative and institutional capacity at the national level is a complex and time-consuming process, the results of which will not be immediately apparent. To create such a potential, developing countries may often lack resources, expertise and political stability. This will require concerted efforts of the international community to help them find the necessary human and financial resources to support measures aimed at improving the overall system of public finance regulation and mobilizing domestic public resources.