9724055 Price This dissertation enhancement grant supports a US graduate student, Mr. Evan Lieberman, working under the direction of Dr. Robert M. Price, Professor of Political Science at the University of California, Berkeley, to do field research in South Africa. This project will study the development of South Africa's taxation system and how it has been influenced by the political issues of national identity and state-building. South Africa's tax regime is unique among developing countries with similar histories, which typically raise no more than five percent of their Gross Domestic Product (GDP) as revenue. Developed as a two-part taxation system when the country was racially divided, the system was raising fifteen percent of the GDP as government revenue from taxes on income and profits by the 1980's. It is hypothesized that the politicization of a national identity makes a significant, measurable impact on the establishment and performance of a state's tax institutions, while also influencing a group's propensity to make sacrifices in the form of taxation. By considering taxation as a historical component of state-building, Mr. Lieberman will explore the theoretical links between critical periods in South Africa's history and the resultant impact on its economic institutions. Additionally, Mr. Lieberman expects that to find that the post-apartheid era is leading to a new definition of national identity, which could dramatically alter South Africa's taxation institutions and the ways in which revenue is collected. The research plan will consist of in-depth interviews, a survey, and an analysis of archival records. Staff members at the Institute for Democracy in South Africa will collaborate with Mr. Lieberman on this project. He will also collaborate with members of the Department of Political Science at the University of Cape Town, where he will be a Visiting Fellow. This study will make an important contribution to the understanding abo ut the structure of taxation in a developing country. This grant also provides support to enable a promising student to establish a strong, independent research career. ***
