CHPTER 8 Sustainable Fiscal Policy for Mineral-Based Economies
Author: Mr. Kirk Hamilton1
  • 1 0000000404811396https://isni.org/isni/0000000404811396International Monetary Fund
Language:
English
Keywords:
BOOK; country; commodity; government; natural resource; resource abundance; petroleum fund; resource rent; resource windfall; Natural resources; Commodity prices; Oil; Sub-Saharan Africa; Global; Africa; Middle East; Europe; natural resource abundance; government policy; governance framework; government development policy; Non-renewable resources; Public investment spending

Abstract

Economic management in mineral- and energy-based extractive economies must confront a wide range of challenges: investments in the sector are large and long- term in nature, rents from extraction are often large relative to GDP (as are potential tax revenues), the resources’ extent and future prices are highly uncertain, information between producers and governments is asymmetric, and the resource deposits themselves are exhaustible.1 The latter point—exhaustibility—raises particular concerns about the sustainability of growth and development in these economies, and this in turn is strongly linked to fiscal policy.

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Author: Mr. Amadou N Sy, Mr. Rabah Arezki, and Thorvaldur Gylfason
ISBN:
9781616351458
Publication Date:
19 Jan 2012
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781616351458.071
Pages:
288