A democratic economic development strategy would be undermined should it cause instability and inflation. So a macroeconomic framework that is neither wildly inflationary nor socially unstable is necessary for establishing the viability of a democratic strategy. Key to this macro- economic framework is the source of public finance for state investment in development. MacEwan argues that resources could be diverted from military expenditures; yet with few grotesque exceptions, (as with Myanmar, where defence spending makes up 39 percent of the central government’s budget), diversions from the military would be insufficient because the amounts involved are too small. Resources could come from deficit spending; yet while moderate deficits, and some price increase may be useful, large state deficits cause rampant inflation. Ultimately, therefore, a democratic programme must depend on taxes – higher income taxes, but also more broadly based extractions, as with value-added taxes. These have to be set within capital controls to slow down capital flight, as with a ‘Keynes tax’ on sales of foreign assets held for less than a certain minimum length of time, or a ‘Tobin tax’ on foreign exchange transactions. So, a macroeconomic strategy is essentially based on higher taxes and restrictions on fast capital.