The politics of fiscal legitimacy in developmental states: emergency taxes in Argentina under Kirchnerism

Barlow, M. and Milcíades Peña, A. (2022) The politics of fiscal legitimacy in developmental states: emergency taxes in Argentina under Kirchnerism. New Political Economy, 27(3), pp. 403-425. (doi: 10.1080/13563467.2021.1961215)

Abstract

In times of crisis, governments can resort to tax rises and emergency taxation schemes to finance extraordinary needs. These schemes often generate tensions in the fiscal contract between the state and society, as they affect basic definitions regarding who is taxed, for how much, and what for. In the context of developing economies, where available sources of extraordinary rents are limited, dealing with these tensions can be problematic as it involves reconciling questions of fiscal legitimacy with the interests of influential economic sectors. This article analyses these tensions by exploring the case of Argentina in the aftermath of the 2001 debt default crisis, when emergency taxes on agricultural exports were implemented and then expanded under Kirchnerist administrations pursuing a ‘post-neoliberal’ developmental agenda. However, we argue that the government failed in legitimating this fiscal agreement, resulting in a tax rebellion by the rural sector in 2008 followed by the growing polarisation of the policy in partisan terms. By bringing to the fore the challenges and conflicts involved in legitimating tax collection, the article illuminates an overlooked aspect of the political economy of developmental states, particularly those seeking to enhance state autonomy while pursuing redistributive goals.

• Item Type: Articles
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Barlow, Dr Matt
• Authors: Barlow, M., and Milcíades Peña, A.
• College/School: College of Social Sciences > School of Social and Political Sciences > Economic and Social History
• Journal Name: New Political Economy
• Publisher: Taylor and Francis
• ISSN: 1356-3467
• ISSN (Online): 1469-9923
• Published Online: 04 September 2021
• Copyright Holders: Copyright © 2021 The Authors
• First Published: First published in New Political Economy 27(3):403-425
• Publisher Policy: Reproduced under a Creative Commons License