BIG Lab Research

Examining financial responsibility across borders

Regional integration unfolds through a series of cross-border dynamics. At the highest level of integration lies what we term fiscal solidarity, where an asymmetry in financial responsibility is assumed by the countries on either side of the border. Achieving fiscal solidarity requires a progression through three stages of interaction: coordination, cooperation, and ultimately collaboration.

The goal of this research was to examine cross-border infrastructure projects in Latin America and Africa to identify instances of fiscal solidarity and evaluate the overall level of integration of each continent. Our methodology involved identifying terrestrial dyads and determining the types of cross-border infrastructure present. We collected data on the location, costs, financing mechanisms, and the legal and fiscal agreements associated with each case. The way these projects are financed and the agreements governing them provide insight into the nature of interactions between neighbouring countries.

On December 2–3, 2024, BIG Lab research on fiscal solidarity was presented by Onome Akhigbe and Anna Perez Verdia-Bayne at the 2024 MOT Borders Forum, an international conference/workshop series held at the Cité Internationale Universitaire in Paris, France. Learn more about the Borders Forum here.