Chapter 4. Fiscal Policy Formulation
Author:
Mrs. Harinder K Malothra
Search for other papers by Mrs. Harinder K Malothra in
Current site
Google Scholar
Close
,
Mr. Milan M Cuc
Search for other papers by Mr. Milan M Cuc in
Current site
Google Scholar
Close
,
Mr. Ulrich Bartsch
Search for other papers by Mr. Ulrich Bartsch in
Current site
Google Scholar
Close
, and
Mr. Menachem Katz
Search for other papers by Mr. Menachem Katz in
Current site
Google Scholar
Close

Abstract

While it may not be possible to identify an “optimal” fiscal policy for oil countries in general, the discussions in the previous section provide important issues for consideration by policymakers. In this section, we present some operational issues to help in the design of schemes for the use of oil revenue. This subsection presents (1) the case for a rule-based fiscal policy and (2) possible fiscal rules, including two “extremes” to be used as guideposts for the possible range of expenditure profiles.

  • Collapse
  • Expand
Improving Petroleum Revenue Management in Sub-Saharan Africa
  • Barnett, Steven, and Rolando Ossowski, 2002, “Operational Aspects of Fiscal Policy in Oil-Producing Countries,IMF Working Paper 02/177 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Baunsgaard, Thomas, 2001, “A Primer on Mineral Taxation,IMF Working Paper 01/139 (Washington: International Monetary Fund).

  • Bjerkholt, Olav, 2002, “Fiscal Rules for Economies with Non-Renewable Resources,” paper prepared for the conference “Rules-Based Fiscal Policies in Emerging Market Economies,Oaxaca, Mexico, February.

    • Search Google Scholar
    • Export Citation
  • Daniel, James, 2001, “Hedging Government Oil Price Risk,IMF Working Paper 01/185 (Washington: International Monetary Fund).

  • Engel, Eduardo, and Rodrigo Valdés, 2000, “Optimal Fiscal Strategy for Oil-Exporting Countries,IMF Working Paper 00/118 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Hausmann, Ricardo, and Roberto Rigobon, 2002, “An Alternative Interpretation of the Resource Curse: Theory and Policy Implications for Stabilization, Saving, and Beyond,paper presented at the IMF Conference on Fiscal Policy Formulation and Implementation in Oil-Producing Countries, Washington, June 5–6.

    • Search Google Scholar
    • Export Citation
  • International Monetary Fund, 2001, Manual on Fiscal Transparency (Washington).

  • Kaufmann, Daniel, Art Kraay, and Pablo Zoido-Lobatón, 1999, “Governance Matters,World Bank Policy Research Working Paper No. 2196 (Washington: World Bank).

    • Search Google Scholar
    • Export Citation
  • Laidler, David, 1999, “The Exchange Rate Regime and Canada’s Monetary Order,Working Paper No. 99-7 (Ottawa: Bank of Canada).

  • Mauro, Paolo, 1997, Why Worry About Corruption?IMF Economic Issues No. 6 (Washington: International Monetary Fund).

  • McPherson, Charles, 2002, “National Oil Companies: Evolution, Issues, Outlook,paper presented at the IMF Conference on Fiscal Policy Formulation and Implementation in Oil-Producing Countries, Washington, June 5–6.

    • Search Google Scholar
    • Export Citation
  • Reinhart, Carmen, and Kenneth Rogoff, 2002, “The Modern History of Exchange Rate Arrangements: A Reinterpretation,NBER Working Paper No. 8963 (Cambridge, Massachusetts: National Bureau of Economic Research).

    • Search Google Scholar
    • Export Citation
  • Sunley, Emil M., Thomas Baunsgaard, and Dominique Simard, 2002, “Revenue from Oil and Gas Sector: Issues and Country Experience,paper presented at the IMF Conference on Fiscal Policy Formulation and Implementation in Oil-Producing Countries, Washington, June 5–6.

    • Search Google Scholar
    • Export Citation
  • Tanzi, Vito, and Hamid R. Davoodi, 1997, “Corruption, Public Investment, and Growth,IMF Working Paper 97/139 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Wolf, Thomas, Emine Gürgen, 2000, Improving Governance and Fighting Corruption in the Baltic and CIS Countries: The Role of the IMF, IMF Economic Issues No. 21 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation