Mexico has large extractive industries and it traditionally has raised sizable fiscal revenues from the oil and gas sector. A confluence of factors—elevated commodity prices, financial challenges of the state-owned oil company Pemex, and revenue needs for financing social and public investment spending over the medium term—suggest that a review of Mexico’s taxation regimes for natural resources would be opportune, against the backdrop of a comprehensive approach to tackling Mexico’s challenges. This paper identifies opportunities for redesigning mining taxation to increase somewhat the revenue intake while maintaining the favorable investment profile of the sector. It also discusses recent reforms to the oil and gas fiscal regime and future reform considerations, with attention to the attractiveness of investment on commercial terms—an issue that should be placed in the context of an overall reform of Pemex’s business strategy and possibly of the energy sector more generally.
Gareth Anderson, Paolo Galang, Mr. Andrea Gamba, Leandro Medina, and Tianxiao Zheng
This paper assess how priorities of the IMF’s membership have evolved over the past two decades, by using text mining techniques on a unique dataset combining IMFC communiqués and constituency statements. Our results reveal significant variation in priorities across time and constituencies. Statements can be characterized by the weight which they place on three key priorities: (i) growth; (ii) debt and development; and (iii) crisis management and quota reform. Sentiment analysis techniques also show that addressing climate change is a topic which is viewed positively by an increasing number of constituencies.
In late 2015, the Chinese authorities launched a policy to reduce capacity in the coal and
steel industries under the wider effort of Supply-Side Structural Reforms. Around the
same time, producer price inflation in China started to pick up strongly after being trapped
in negative territory for more than fifty consecutive months. So what is behind this strong
reflation—capacity cuts in coal and steel, or a strengthening of aggregate demand? Our
empirical analyses indicate that a pickup in aggregate demand, possibly due to the
government’s stimulus package in 2015-16, was the more important driver. Capacity cuts
played a role in propping up coal and steel prices, explaining at most 40 percent of their