Cover IMF Working Papers
Harnessing Resource Wealth for Inclusive Growth in Fragile States
Author:
Ms. Corinne C Delechat
Search for other papers by Ms. Corinne C Delechat in
Current site
Google Scholar
PubMedClose
,
Mr. John W Clark JR
Search for other papers by Mr. John W Clark JR in
Current site
Google Scholar
PubMedClose
,
Pranav Gupta
Search for other papers by Pranav Gupta in
Current site
Google Scholar
PubMedClose
,
Ms. Malangu Kabedi-Mbuyi
Search for other papers by Ms. Malangu Kabedi-Mbuyi in
Current site
Google Scholar
PubMedClose
,
Mr. Mesmin Koulet-Vickot
Search for other papers by Mr. Mesmin Koulet-Vickot in
Current site
Google Scholar
PubMedClose
,
Ms. Carla Macario
Search for other papers by Ms. Carla Macario in
Current site
Google Scholar
PubMedClose
,
Mr. Toomas Orav
Search for other papers by Mr. Toomas Orav in
Current site
Google Scholar
PubMedClose
,
Mr. Manuel Rosales Torres
Search for other papers by Mr. Manuel Rosales Torres in
Current site
Google Scholar
PubMedClose
,
Rene Tapsoba
Search for other papers by Rene Tapsoba in
Current site
Google Scholar
PubMedClose
,
Dmitry Zhdankin
Search for other papers by Dmitry Zhdankin in
Current site
Google Scholar
PubMedClose
, and
Ms. Susan S. Yang
Search for other papers by Ms. Susan S. Yang in
Current site
Google Scholar
PubMedClose
Series:
IMF Working Papers
Volume/Issue:
Volume 2015: Issue 025
Language:
English
Publication Date:
11 Feb 2015
DOI:
https://doi.org/10.5089/9781498392570.001
ISBN:
9781498392570
ISSN:
1018-5941
Pages:
54
Keywords:
WP; resource revenue; natural resource; MRU country; investment efficiency; revenue profile; Natural resources; West Africa; fragile states; social safety nets; inclusive growth; investment path; public investment; Public investment spending; Debt sustainability; Consumption taxes; Private consumption; Sub-Saharan Africa
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (3.1 MB) Download Epub
Like other fragile sub-Saharan African countries, Côte d’Ivoire, Guinea, Liberia, and Sierra Leone are seeking to harness their natural resource potential in the context of ambitious development strategies. This study investigates options for scaling up public investment and expanding social safety nets in a general equilibrium setting. First, it assesses the macro-fiscal implications of alternative fiscal rules for public investment, and, second, it explicitly accounts for redistribution through direct cash transfers. Results show that a sustainable non-resource deficit target is robust to the high uncertainty of resources output and prices, while delivering growth benefits through higher public investment. The scaling-up magnitudes, however, depend on the size of projected resource revenue and absorptive capacity. Adding a social transfer raises private consumption, suggesting that a fraction of the resource revenue could be used to expand safety nets.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2015: Issue 025