Jordan’s initiatives to reduce its energy dependency could have substantial macroeconomic
implications, but will crucially depend on the level of international oil prices in the next
decade. Significant uncertainties remain regarding the feasibility of the initiatives and their
potential fiscal costs, including from contingent liabilities, could be very large. Given the
lead time required for such major investments, work should start now on: (i) conducting
comprehensive cost-benefits analysis of these projects; (ii) addressing the challenges arising
from the taxation of natural resources; and (iii) designing a fiscal framework to anchor fiscal
policies if revenue from these energy projects materializes.
In an era of rising energy costs, oil importing developing countries must look both to expanding their own energy resources and to making more efficient use of the energy they have and import. The author discusses the potential for conservation in the main energy using sectors of their economies.
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International Monetary Fund. External Relations Dept.
This paper highlights that the current round of trade talks under the auspices of the World Trade Organization aims at better integrating developing countries—especially the small and poor ones—into the global trading system. For that reason, it was named the Doha Development Agenda when it was launched in late 2001. However, more than three years on, little progress has been made. It took a late July 2004 accord outlining “negotiating frameworks” in agriculture and industrial products just to keep the talks afloat.