Direct Distribution of Resource Revenues: Worth Considering?

Author/Editor: Sanjeev Gupta ; Alex Segura-Ubiergo ; Enrique Flores
Publication Date: June 10, 2014
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Summary: Some scholars have argued that direct distribution of natural resource revenues to the population would help resource-rich countries escape the “resource curse.” This discussion note analyzes whether this proposal is a viable policy alternative for resource-rich countries. The first priority for policymakers is to establish fiscal policy objectives to support macroeconomic stability and development objectives. In this regard, the establishment of an adequate fiscal framework that informs decisions on how much to save and invest, or how to smooth out revenue volatility, and deal with exhaustibility issues should precede any discussion of direct distribution of resource wealth to the population.
Series: Staff Discussion Notes No. 14/5
Subject(s): Natural resources | Revenues | Income distribution | Fiscal policy

Publication Date: June 10, 2014
ISBN/ISSN: 9781484367209 Format: Paper
Stock No: SDNEA2014005 Pages: 26
US$10.00 (Academic Rate:
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