Adaptive Fiscal Capacity

Ideas
Written By Yuen Yuen Ang

Definition

Adaptive Fiscal Capacity (AFC) refers to the ability of a government to generate, manage, and adapt its portfolio of financial resources—tax and taxless alike—in response to evolving economic, political, and environmental conditions.

Unlike conventional fiscal capacity, which focuses narrowly on the state’s power to collect taxes, AFC encompasses the state’s capacity to balance portfolios, absorb shocks, and learn from crises through flexible use of revenue instruments, credit, and assets.

To Learn More

  • “Fairy Tales of Western Development: The Non-Democratic Origins of Fiscal Capacity in Britain, the US, and China.” Forthcoming at Political Economy Rebooted. Available on SSRN.

Yuen Yuen Ang https://www.yuenyuenang.org
Next

Polytunity