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Direct Distribution of Resource Revenues: Worth Considering?

Author/Editor: Sanjeev Gupta | Alex Segura-Ubiergo | Enrique Flores
Published: June 10, 2014
Electronic Access: Free Full Text (PDF file size is 756KB)
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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.
 
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Series: Staff Discussion Notes No. 14/5
Subject(s): Natural resources | Revenues | Income distribution | Fiscal policy
 
English  
    Published:   June 10, 2014        
    ISBN/ISSN:   9781484367209   Format:   Paper
    Stock No:   SDNEA2014005   Pages:   25
    Price:   US$10.00
       
     
Please address any questions about this title to publications@imf.org.