## Macroeconomic Management in Resource-Rich Countries (MRC)

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---

### Course description and objectives
- Course Title: Macroeconomic Management in Resource-Rich Countries (MRC).
- Presented by: IMF’s Institute for Capacity Development.
- Course Topic: Inclusive Growth and Structural Policies.
- Course Description: Focuses on macroeconomic policy issues and challenges faced by resource-rich countries (RRCs). Uses lectures, hands-on workshops, debates, case studies, and online modules to achieve objectives.
- Course Objectives: Upon completion, participants should be able to:
  - Analyze economic performance in resource-rich countries, in particular, in terms of growth, diversification, inclusiveness, and sustainability.
  - Design fiscal frameworks, in particular, applying appropriate fiscal benchmarks to determine whether to consume, save, or invest the proceeds from the sale of natural resources.
  - Identify the appropriate macroeconomic policy response to commodity price shocks.
  - Ensure greater transparency in the management of natural resources, and develop appropriate institutional structures for Sovereign Wealth Funds.

### Target audience, qualifications, and evaluation
- Target Audience: Mid- to senior-level officials from central banks, ministries of finance and other relevant government agencies involved in the design and execution of policies in resource-rich countries.
- Qualifications: Participants are expected to have an advanced degree in economics or equivalent experience. Participants may be required to complete online modules prior to the start of the course.
- Performance Evaluation:
  - Two multiple-choice quizzes will be given, one at the beginning of the course and another at the end, to ascertain participants’ progress.

### Core units and auxiliary units (course structure)
- Core Units (Parts I–IV):
  - Part I. The Macroeconomics of Growth and Diversification in Resource-Rich Countries
    - 2. Commodity markets
    - 3. Economic growth and natural resources
    - 4. Economic diversification and natural resources
    - 5. Natural resources and inclusive growth
  - Part II. Managing Fiscal Policy in Resource-Rich Countries
    - 6. Fiscal regimes in resource-rich countries
    - 7. Simple fiscal benchmarks: How much to extract, consume and save?
    - 8. Fiscal frameworks in resource-rich countries
    - 9. Case studies of fiscal frameworks
    - 10. Energy subsidy reform
  - Part III. Macroeconomic Policy Coordination in Resource-Rich Countries
    - 11. Monetary and exchange rate regimes in resource-rich countries
    - 12. Macroeconomic and financial policies to deal with resource flows
  - Part IV. Managing Public-Sector Assets in Resource-Rich Countries
    - 13. Sovereign Wealth Funds
    - 14. Transparency in the management of natural resources
- Topics (Auxiliary units):
  - Core units are designed to be offered in all regions. Auxiliary units may be customized to the region where the course is delivered, and may feature country-specific examples.
  - Examples of auxiliary units:
    - A1. (For Headquarters) A conversation with IMF mission chiefs and TA providers on resource-rich countries.
    - A2. (For CEF) Expand the discussion of Sovereign Wealth Funds (SWF) to allow for a more thorough treatment of central-bank reserve management, in countries where the central bank acts like a SWF.
    - A3. (For JVI) Trip to OPEC HQ or other activities.
    - A4. Guest lecturers from the region (from RTACs, resident representatives, experts, the authorities; may for instance present the IMF’s Regional Economic Outlook).

### Course program (Day 1 to Day 10) — session structure and topics
- Day 1
  - 15 minutes Opening Session: Introductory Remarks
  - 45 minutes Initial Test
  - 1.5 hours Introduction to the Course
    - Natural resources: definition, size, traits, importance
    - The resource curse and the political economy of resource management
    - Managing macroeconomic policy in Resource-Rich Countries (RRCs)
  - 1.5 hours Commodity Markets
    - A historical analysis of commodity markets
    - Characteristics of commodity prices and sub-soil reserves
    - Recent evolution and outlook for commodity markets: prices and quantities
  - 1.5 hours Workshop: Commodity Markets
    - Commodity prices and commodity revenues: volatility, fiscal and balance of payment dependence
    - Natural resources: exhaustibility, proven reserves, governance indicators
    - Oil price uncertainty: Learning to read price fan charts and stochastic commodity price simulations
- Day 2
  - 3 hours Economic Growth and Natural Resources
    - Theories of growth, and evidence in RRCs
    - Key drivers of growth and role of resource abundance
    - How to promote and sustain growth in RRCs
  - 3 hours Workshop: Economic Growth and Natural Resources
    - Growth and its determinants: understanding cross-country growth regressions
    - Potential output: Growth accounting and other methods
    - Natural resource abundance and choice of economic policies, institutions, quality of human capital, TFP growth, and structural reforms
- Day 3
  - 1.5 hours Economic Diversification and Natural Resources
    - What is economic diversification?
    - Why diversify?
    - How to diversify?
  - 1.5 hours Workshop: Economic Diversification and Natural Resources
    - Use diversification tools and analytics to ascertain extent of diversification in RRCs.
    - Explore growth implications of diversification
    - Discuss political economy constraints to diversification.
  - 1.5 hours Natural Resources and Inclusive Growth
    - Inclusive growth: Definition and measurement
    - Why is it relevant to RRCs?
    - What policies promote inclusive growth in RRCs?
  - 1.5 hours Participants’ Debate (groups debate pros and cons of various current policy issues facing RRCs)
- Day 4
  - 3 hours Fiscal Regimes in Resource-Rich Countries
    - Key objectives of fiscal regimes for extractive industries
    - Types of fiscal regimes and international experience with different fiscal regimes
    - Evaluating and modeling fiscal regimes
  - 1.5 hours Workshop: Fiscal Terms for Resource Extraction (reinforce lecture concepts; optional prerequisite: online course on fiscal regimes)
  - 1.5 hours Simple Fiscal Benchmarks: How Much to Extract, Consume, and Save?
    - How much to extract? The Hotelling rule
    - Simple fiscal benchmarks and their limitations: theory and country experiences
    - Role of public investment
- Day 5
  - 1.5 hours Fiscal Frameworks in Resource-Rich Countries
    - Fiscal frameworks: definition and building blocks
    - Managing volatility and exhaustibility: fiscal anchors, depletion horizon, the IMF’s fiscal sustainability framework, and precautionary motives
    - Effective mobilization and use of resources: a broader tax base, scale and composition of spending, and role of fiscal institutions
  - 3 hours Workshop: Fiscal Sustainability—Fiscal Benchmarks and Fiscal Frameworks
    - Apply different fiscal frameworks (PIH, BIH, modified PIH, FSF, and commodity price rules supplemented with a fiscal anchor) to data from a fictitious country.
    - Analyze implications for fiscal aggregates (such as the deficit, government spending, and the government’s net foreign asset position) under various shocks to oil prices, interest rate, reserves, and growth.
    - Optional prerequisite: online course on basics of fiscal aggregates for RRCs.
  - 1.5 hours Fiscal Frameworks: Case Studies: Botswana, Norway, Chile (optional: Timor-Leste, Mexico)
    - Botswana: Fiscal framework with a Golden rule
    - Norway: Fiscal framework with a BIH rule
    - Chile: Fiscal framework based on structural balance
    - Timor-Leste: Example of PIH
    - Mexico: Example of hedging commodity prices
- Day 6
  - 1.5 hours Workshop: Fiscal Rules to Manage Resource Revenue Volatility
    - Calculating various structural commodity-price rules
    - Calculating structural primary expenditure and evolution of stabilization fund
    - Comparing volatility vs. size of stabilization fund across different rules
  - 1.5 hours Monetary and Exchange Rate Regimes in Resource-Rich Countries
    - Real exchange rate: concept and relevance in RRCs
    - Monetary policy frameworks and exchange rate regimes: which ones are appropriate in RRCs?
    - Dutch disease in RRCs and interaction with regime choice
  - 1.5 hours Macroeconomic and Financial Policies to Deal with Resource Flows
    - Macro policy toolkit for resource-rich countries
    - Policy mix and sources of vulnerabilities
    - Country examples
  - 1.5 hours Workshop: Case Study of Coordination of Monetary, Exchange Rate and Fiscal Policies
    - Analyze Russia’s macroeconomic policies during a period of high world oil prices and a booming economy
    - Assess whether policy mix was appropriate
    - Regional customization: case study of Nigeria
- Day 7
  - 1.5 hours Participants’ Presentations: Fiscal Frameworks (participants present fiscal frameworks and fiscal regime for extractive industries in participants’ countries)
  - 1.5 hours Sovereign Wealth Funds (SWFs)
    - What form may SWFs take, and how do they differ from central-bank reserves?
    - Why might SWFs be desirable in RRCs?
    - Relationship to the budget
    - SWF’s asset allocation
  - 1.5 hours Transparency in the Management of Natural Resources
    - What is transparency and why is important?
    - Key elements of resource revenue management chain
    - What are good practices & policies that promote transparency?
  - 1.5 hours Energy Subsidy Reform
    - Energy subsidies: definition, size, and implications
    - Barriers to subsidy reform, and issues in reform design
    - Country experiences
- Day 8
  - 1.5 hours Quiz Game (review course content)
  - 1.5 hours Preparation of Participants’ Final Presentations
  - 3 hours Preparation of Participants’ Final Presentations
- Day 9
  - 3 hours Preparation of Participants’ Final Presentations
  - 1.5 hours Preparation of Participants’ Final Presentations
  - 1.5 hours Course Evaluation and Final Test
- Day 10
  - 1.5 hours Participants’ Final Presentations
  - 1.5 hours Concluding Session and Presentation of Certificates

### Reading list highlights (selected suggested and optional materials)
- L–1 Introduction to the Course
  - Suggested: Collier, Paul, 2013, “Under Pressure,” Finance & Development, December.
  - Suggested: Frankel J., 2012, “The Natural Resource Curse: A Survey of Diagnoses and Some Prescriptions,” in: Commodity Price Volatility and Inclusive Growth in Low-Income Countries, Chapter 2, available from Moodle.
  - Optional: McKinsey, 2013, Reverse the Resource Curse: Maximizing the Potential of Resource-Driven Economies, Executive Summary.
- L–2 Commodity Markets
  - Suggested: IMF, 2018, “Special Feature: Commodity Market Developments and Forecasts” in: World Economic Outlook, April, Chapter 1, pp. 55–61.
  - Suggested: Arezki, Rabah, and Olivier Blanchard, 2014, “Seven Questions About The Recent Oil Price Slump,” iMFdirect Global Economy Forum.
  - Optional: Kilian, Lutz, 2015, “How the shale oil revolution has affected US oil and gasoline prices,” VOX, CEPR’s Policy Portal.
- L–3 Economic Growth and Natural Resources
  - Suggested: Johnson, Simon, Jonathan Ostry, and Arvind Subramanian, 2006, “Levers for Growth,” Finance & Development 43.
  - Suggested: Romer, Paul, 2007, “Economic Growth,” in: The Concise Encyclopedia of Economics, ed. David R. Henderson (Indianapolis: Liberty Fund).
  - Optional: Van der Ploeg, Fredrick, and S. Poelhekke, 2009, “Volatility and the natural resource curse,” Oxford Economic Papers, 61(4): 727–760.
- L–4 Economic Diversification and Natural Resources
  - Suggested: Gelb A., 2011, “Economic Diversification in Resource Rich Countries,” in: Beyond the Curse: Policies to Harness the Power of Natural Resources, Chapter 4, available from Moodle.
  - Suggested: Papageorgiou, Chris, and Nikola Spatafora, 2012, Economic Diversification in LICs: Stylized Facts and Macroeconomic Implications, IMF Staff Discussion Note 12/13.
  - Optional: Hausmann, Ricardo, et al., 2011, The Atlas of Economic Complexity: Mapping Paths to Prosperity, Puritan Press: New Hampshire, U.S.
- L–5 Natural Resources and Inclusive Growth
  - Suggested: IMF, 2014, “Natural Resources Can Play Key Role in Inclusive Growth,” IMF Survey.
  - Suggested: Ianchovichina, Elena, and Susanna Lundstrom Gable, 2012, “What is Inclusive Growth?” in: Commodity Price Volatility and Inclusive Growth in Low-Income Countries, Chapter 8, available from Moodle.
- L–6 to L–8 Fiscal topics
  - L–6 Suggested: IMF, 2012, “Fiscal Regimes for Extractive Industries: Design and Implementation”.
  - L–7 Suggested: IMF, 2012, Macroeconomic Policy Frameworks for Resource-Rich Developing Countries, pp. 1, 11–15.
  - L–8 Suggested: IMF, 2012, Macroeconomic Policy Frameworks for Resource-Rich Developing Countries, pp. 18–29, “Analytical Frameworks”.
  - Optional: IMF, 2015, Fiscal Monitor: The Commodities Roller Coaster: A Fiscal Framework for Uncertain Times.

### L–9 to L–14: Advanced topics and case studies (Section 2)
- L–9 Fiscal Frameworks: Case Studies: Botswana, Norway, and Chile
  - Suggested readings include Frankel, Jeffrey, 2012, “Chile’s Countercyclical Triumph,” and De Gregorio, Jose, and Felipe Labbe, 2012, “Copper, the Real Exchange Rate and Macroeconomic Fluctuations in Chile.”
  - Suggested: IMF, 2016, “Norway: Selected Issues,” IMF Country Report 16/215.
  - Optional: Dabán, Theresa, 2011, “Strengthening Chile’s Rule-Based Fiscal Framework”, IMF Working Paper WP/11/17.
- L-10 Monetary and Exchange Rate Regimes in Resource-Rich Countries
  - Suggested readings include Catao, Luis A.V., 2007, “Why Real Exchange Rates?” Finance and Development 44(September): 46–47; Ebrahim-zadeh, Christine, 2003, “Back to Basics: Dutch Disease: Too much wealth managed unwisely,” Finance and Development 40(1); and Ghosh, A.R., and Jonathan D. Ostry, 2009, “Choosing an Exchange Rate Regime,” Finance and Development 46(4).
- L-11 Macroeconomic and Financial Policies to Deal with Resource Flows
  - Suggested: IMF, 2012, Macroeconomic Policy Frameworks for Resource-Rich Developing Countries, Part IV and Part V; IMF, 2012, Supplement 2, Part D.
  - Suggested: Anand, Rahul, and Eswar S. Prasad, 2012, “How Should Emerging Market and Low-Income Country Central Banks Respond to Commodity Price Shocks?” in: Commodity Price Volatility and Inclusive Growth in Low-Income Countries, Chapter 5.
  - Optional: Sommer, Martin, et al., 2016, “Learning to Live with Cheaper Oil: Policy Adjustment in MENA and CCA Oil-Exporting Countries,” IMF Departmental Paper Series 16/3.
- L-12 Sovereign Wealth Funds
  - Suggested: IMF, 2010, Economics of Sovereign Wealth Funds: Issues for Policymakers, Introduction.
  - Suggested: IMF, 2012, “Management of Resource Funds and Country Experiences” in: Macroeconomic Policy Frameworks for Resource-Rich Developing Countries—Background Paper 1-Supplement 1, pp. 55–71.
  - Suggested: IMF, 2014, “Sovereign Asset-Liability Management - Guidance for Resource-Rich Economies,” IMF Policy Paper.
  - Optional readings address governance, investment strategy, and country experiences, including IMF Working Paper 18/26 and IMF Working Paper 13/231.
- L–13 Transparency in the Management of Natural Resources
  - Suggested resources and indices:
    - IMF, 2007, Guide on Resource Revenue Transparency.
    - Natural Resource Governance Institute, 2017, Resource Governance Index.
    - Extractive Industries Transparency Initiative, 2018, Progress Report.
  - Optional readings on transparency, civil society, and fiscal transparency include Heuty, Antoine, 2012, IMF, 2018, Fiscal Transparency Handbook, and Natural Resource Governance Institute, 2014, Natural Resource Charter.
- L–14 Energy Subsidy Reform
  - Suggested readings on subsidy measurement and reform lessons:
    - Coady, David, and Baoping Shang, 2015, “Energy subsidies in developing countries: Treating the disease while symptoms abate,” VOX, CEPR’s Policy Portal.
    - Coady, David, et al., 2015, “How Large Are Global Energy Subsidies?” IMF Working Paper 15/105.
    - IMF, 2013, “Energy Subsidy Reform: Lessons and Implications,” IMF Policy Paper, pp. 6–25.
    - IMF, 2013, “Energy Subsidy Reform in Sub-Saharan Africa: Experiences and Lessons,” African Departmental Paper 13/2, April, Executive Summary, Introduction, and Chapter 1.
  - Optional regional materials and stocktakes include IMF, 2014, and Di Bella, Gabriel, et al., 2015, IMF Working Paper 15/30.

*Source: mrc - Section 2, International Monetary Fund.*

### Section 1

### COURSE STRUCTURE AND STANDARD SYLLABUS

### Course description and objectives
- Course Title: Macroeconomic Management in Resource-Rich Countries (MRC).
- Presented by: IMF’s Institute for Capacity Development.
- Course Topic: Inclusive Growth and Structural Policies.
- Course Description: Focuses on macroeconomic policy issues and challenges faced by resource-rich countries (RRCs). Uses lectures, hands-on workshops, debates, case studies, and online modules to achieve objectives.
- Course Objectives: Upon completion, participants should be able to:
  - Analyze economic performance in resource-rich countries, in particular, in terms of growth, diversification, inclusiveness, and sustainability.
  - Design fiscal frameworks, in particular, applying appropriate fiscal benchmarks to determine whether to consume, save, or invest the proceeds from the sale of natural resources.
  - Identify the appropriate macroeconomic policy response to commodity price shocks.
  - Ensure greater transparency in the management of natural resources, and develop appropriate institutional structures for Sovereign Wealth Funds.

### Target audience, qualifications, and evaluation
- Target Audience: Mid- to senior-level officials from central banks, ministries of finance and other relevant government agencies involved in the design and execution of policies in resource-rich countries.
- Qualifications: Participants are expected to have an advanced degree in economics or equivalent experience. Participants may be required to complete online modules prior to the start of the course.
- Performance Evaluation: Two multiple-choice quizzes will be given, one at the beginning of the course and another at the end, to ascertain participants’ progress.

### Core units and auxiliary units (course structure)
- Core Units (Parts I–IV):
  - Part I. The Macroeconomics of Growth and Diversification in Resource-Rich Countries
    - 2. Commodity markets
    - 3. Economic growth and natural resources
    - 4. Economic diversification and natural resources
    - 5. Natural resources and inclusive growth
  - Part II. Managing Fiscal Policy in Resource-Rich Countries
    - 6. Fiscal regimes in resource-rich countries
    - 7. Simple fiscal benchmarks: How much to extract, consume and save?
    - 8. Fiscal frameworks in resource-rich countries
    - 9. Case studies of fiscal frameworks
    - 10. Energy subsidy reform
  - Part III. Macroeconomic Policy Coordination in Resource-Rich Countries
    - 11. Monetary and exchange rate regimes in resource-rich countries
    - 12. Macroeconomic and financial policies to deal with resource flows
  - Part IV. Managing Public-Sector Assets in Resource-Rich Countries
    - 13. Sovereign Wealth Funds
    - 14. Transparency in the management of natural resources
- Topics (Auxiliary units): Regional customization
  - Core units are designed to be offered in all regions. Auxiliary units may be customized to the region where the course is delivered, and may feature country-specific examples.
  - Examples of auxiliary units:
    - A1. (For Headquarters) A conversation with IMF mission chiefs and TA providers on resource-rich countries.
    - A2. (For CEF) Expand the discussion of Sovereign Wealth Funds (SWF) to allow for a more thorough treatment of central-bank reserve management, in countries where the central bank acts like a SWF.
    - A3. (For JVI) Trip to OPEC HQ or other activities.
    - A4. Guest lecturers from the region (from RTACs, resident representatives, experts, the authorities; may for instance present the IMF’s Regional Economic Outlook).

### Course program (Day 1 to Day 10) — session structure and topics
- Day 1
  - 15 minutes Opening Session: Introductory Remarks
  - 45 minutes Initial Test
  - 1.5 hours Introduction to the Course
    - Natural resources: definition, size, traits, importance
    - The resource curse and the political economy of resource management
    - Managing macroeconomic policy in Resource-Rich Countries (RRCs)
  - 1.5 hours Commodity Markets
    - A historical analysis of commodity markets
    - Characteristics of commodity prices and sub-soil reserves
    - Recent evolution and outlook for commodity markets: prices and quantities
  - 1.5 hours Workshop: Commodity Markets
    - Commodity prices and commodity revenues: volatility, fiscal and balance of payment dependence
    - Natural resources: exhaustibility, proven reserves, governance indicators
    - Oil price uncertainty: Learning to read price fan charts and stochastic commodity price simulations
- Day 2
  - 3 hours Economic Growth and Natural Resources
    - Theories of growth, and evidence in RRCs
    - Key drivers of growth and role of resource abundance
    - How to promote and sustain growth in RRCs
  - 3 hours Workshop: Economic Growth and Natural Resources
    - Growth and its determinants: understanding cross-country growth regressions
    - Potential output: Growth accounting and other methods
    - Natural resource abundance and choice of economic policies, institutions, quality of human capital, TFP growth, and structural reforms
- Day 3
  - 1.5 hours Economic Diversification and Natural Resources
    - What is economic diversification?
    - Why diversify?
    - How to diversify?
  - 1.5 hours Workshop: Economic Diversification and Natural Resources
    - Use diversification tools and analytics to ascertain extent of diversification in RRCs.
    - Explore growth implications of diversification
    - Discuss political economy constraints to diversification.
  - 1.5 hours Natural Resources and Inclusive Growth
    - Inclusive growth: Definition and measurement
    - Why is it relevant to RRCs?
    - What policies promote inclusive growth in RRCs?
  - 1.5 hours Participants’ Debate (groups debate pros and cons of various current policy issues facing RRCs)
- Day 4
  - 3 hours Fiscal Regimes in Resource-Rich Countries
    - Key objectives of fiscal regimes for extractive industries
    - Types of fiscal regimes and international experience with different fiscal regimes
    - Evaluating and modeling fiscal regimes
  - 1.5 hours Workshop: Fiscal Terms for Resource Extraction (reinforce lecture concepts; optional prerequisite: online course on fiscal regimes)
  - 1.5 hours Simple Fiscal Benchmarks: How Much to Extract, Consume, and Save?
    - How much to extract? The Hotelling rule
    - Simple fiscal benchmarks and their limitations: theory and country experiences
    - Role of public investment
- Day 5
  - 1.5 hours Fiscal Frameworks in Resource-Rich Countries
    - Fiscal frameworks: definition and building blocks
    - Managing volatility and exhaustibility: fiscal anchors, depletion horizon, the IMF’s fiscal sustainability framework, and precautionary motives
    - Effective mobilization and use of resources: a broader tax base, scale and composition of spending, and role of fiscal institutions
  - 3 hours Workshop: Fiscal Sustainability—Fiscal Benchmarks and Fiscal Frameworks
    - Apply different fiscal frameworks (PIH, BIH, modified PIH, FSF, and commodity price rules supplemented with a fiscal anchor) to data from a fictitious country.
    - Analyze implications for fiscal aggregates (such as the deficit, government spending, and the government’s net foreign asset position) under various shocks to oil prices, interest rate, reserves, and growth.
    - Optional prerequisite: online course on basics of fiscal aggregates for RRCs.
  - 1.5 hours Fiscal Frameworks: Case Studies: Botswana, Norway, Chile (optional: Timor-Leste, Mexico)
    - Botswana: Fiscal framework with a Golden rule
    - Norway: Fiscal framework with a BIH rule
    - Chile: Fiscal framework based on structural balance
    - Timor-Leste: Example of PIH
    - Mexico: Example of hedging commodity prices
- Day 6
  - 1.5 hours Workshop: Fiscal Rules to Manage Resource Revenue Volatility
    - Calculating various structural commodity-price rules
    - Calculating structural primary expenditure and evolution of stabilization fund
    - Comparing volatility vs. size of stabilization fund across different rules
  - 1.5 hours Monetary and Exchange Rate Regimes in Resource-Rich Countries
    - Real exchange rate: concept and relevance in RRCs
    - Monetary policy frameworks and exchange rate regimes: which ones are appropriate in RRCs?
    - Dutch disease in RRCs and interaction with regime choice
  - 1.5 hours Macroeconomic and Financial Policies to Deal with Resource Flows
    - Macro policy toolkit for resource-rich countries
    - Policy mix and sources of vulnerabilities
    - Country examples
  - 1.5 hours Workshop: Case Study of Coordination of Monetary, Exchange Rate and Fiscal Policies
    - Analyze Russia’s macroeconomic policies during a period of high world oil prices and a booming economy
    - Assess whether policy mix was appropriate
    - Regional customization: case study of Nigeria
- Day 7
  - 1.5 hours Participants’ Presentations: Fiscal Frameworks (participants present fiscal frameworks and fiscal regime for extractive industries in participants’ countries)
  - 1.5 hours Sovereign Wealth Funds (SWFs)
    - What form may SWFs take, and how do they differ from central-bank reserves?
    - Why might SWFs be desirable in RRCs?
    - Relationship to the budget
    - SWF’s asset allocation
  - 1.5 hours Transparency in the Management of Natural Resources
    - What is transparency and why is important?
    - Key elements of resource revenue management chain
    - What are good practices & policies that promote transparency?
  - 1.5 hours Energy Subsidy Reform
    - Energy subsidies: definition, size, and implications
    - Barriers to subsidy reform, and issues in reform design
    - Country experiences
- Day 8
  - 1.5 hours Quiz Game (review course content)
  - 1.5 hours Preparation of Participants’ Final Presentations
  - 3 hours Preparation of Participants’ Final Presentations
- Day 9
  - 3 hours Preparation of Participants’ Final Presentations
  - 1.5 hours Preparation of Participants’ Final Presentations
  - 1.5 hours Course Evaluation and Final Test
- Day 10
  - 1.5 hours Participants’ Final Presentations
  - 1.5 hours Concluding Session and Presentation of Certificates

### Reading list highlights (selected suggested and optional materials)
- L–1 Introduction to the Course
  - Suggested: Collier, Paul, 2013, “Under Pressure,” Finance & Development, December.
  - Suggested: Frankel J., 2012, “The Natural Resource Curse: A Survey of Diagnoses and Some Prescriptions,” in: Commodity Price Volatility and Inclusive Growth in Low-Income Countries, Chapter 2, available from Moodle.
  - Optional: McKinsey, 2013, Reverse the Resource Curse: Maximizing the Potential of Resource-Driven Economies, Executive Summary.
- L–2 Commodity Markets
  - Suggested: IMF, 2018, “Special Feature: Commodity Market Developments and Forecasts” in: World Economic Outlook, April, Chapter 1, pp. 55–61.
  - Suggested: Arezki, Rabah, and Olivier Blanchard, 2014, “Seven Questions About The Recent Oil Price Slump,” iMFdirect Global Economy Forum.
  - Optional: Kilian, Lutz, 2015, “How the shale oil revolution has affected US oil and gasoline prices,” VOX, CEPR’s Policy Portal.
- L–3 Economic Growth and Natural Resources
  - Suggested: Johnson, Simon, Jonathan Ostry, and Arvind Subramanian, 2006, “Levers for Growth,” Finance & Development 43.
  - Suggested: Romer, Paul, 2007, “Economic Growth,” in: The Concise Encyclopedia of Economics, ed. David R. Henderson (Indianapolis: Liberty Fund).
  - Optional: Van der Ploeg, Fredrick, and S. Poelhekke, 2009, “Volatility and the natural resource curse,” Oxford Economic Papers, 61(4): 727–760.
- L–4 Economic Diversification and Natural Resources
  - Suggested: Gelb A., 2011, “Economic Diversification in Resource Rich Countries,” in: Beyond the Curse: Policies to Harness the Power of Natural Resources, Chapter 4, available from Moodle.
  - Suggested: Papageorgiou, Chris, and Nikola Spatafora, 2012, Economic Diversification in LICs: Stylized Facts and Macroeconomic Implications, IMF Staff Discussion Note 12/13.
  - Optional: Hausmann, Ricardo, et al., 2011, The Atlas of Economic Complexity: Mapping Paths to Prosperity, Puritan Press: New Hampshire, U.S.
- L–5 Natural Resources and Inclusive Growth
  - Suggested: IMF, 2014, “Natural Resources Can Play Key Role in Inclusive Growth,” IMF Survey.
  - Suggested: Ianchovichina, Elena, and Susanna Lundstrom Gable, 2012, “What is Inclusive Growth?” in: Commodity Price Volatility and Inclusive Growth in Low-Income Countries, Chapter 8, available from Moodle.
- L–6 to L–8 Fiscal topics
  - L–6 Suggested: IMF, 2012, “Fiscal Regimes for Extractive Industries: Design and Implementation”.
  - L–7 Suggested: IMF, 2012, Macroeconomic Policy Frameworks for Resource-Rich Developing Countries, pp. 1, 11–15.
  - L–8 Suggested: IMF, 2012, Macroeconomic Policy Frameworks for Resource-Rich Developing Countries, pp. 18–29, “Analytical Frameworks”.
  - Optional: IMF, 2015, Fiscal Monitor: The Commodities Roller Coaster: A Fiscal Framework for Uncertain Times.

*IMF’s Institute for Capacity Development*

### Section 2

### mrc - Section 2

### L–9 Fiscal Frameworks: Case Studies: Botswana, Norway, and Chile
- Suggested readings:
  - Frankel, Jeffrey, 2012, “Chile’s Countercyclical Triumph,” Foreign Policy.
  - De Gregorio, Jose, and Felipe Labbe, 2012, “Copper, the Real Exchange Rate and Macroeconomic Fluctuations in Chile,” in: Beyond the Curse: Policies to Harness the Power of Natural Resources, Chapter 12.
  - IMF, 2016, “Norway: Selected Issues,” IMF Country Report 16/215.
- Optional readings:
  - Dabán, Theresa, 2011, “Strengthening Chile’s Rule-Based Fiscal Framework”, IMF Working Paper WP/11/17.

### L-10 Monetary and Exchange Rate Regimes in Resource-Rich Countries
- Suggested readings:
  - Catao, Luis A.V., 2007, “Why Real Exchange Rates?” Finance and Development 44(September): 46–47.
  - Ebrahim-zadeh, Christine, 2003, “Back to Basics: Dutch Disease: Too much wealth managed unwisely,” Finance and Development 40(1).
  - Ghosh, A.R., and Jonathan D. Ostry, 2009, “Choosing an Exchange Rate Regime,” Finance and Development 46(4).
- Note: French-language titles are provided in the source for two items.

### L-11 Macroeconomic and Financial Policies to Deal with Resource Flows
- Suggested readings and analytic frameworks:
  - IMF, 2012, Macroeconomic Policy Frameworks for Resource-Rich Developing Countries, Part IV, “Short- and Medium-term Macroeconomic Issues”, and Part V, “External Sector Assessments for Natural Resource Producers”.
  - IMF, 2012, Macroeconomic Policy Frameworks for Resource-Rich Developing Countries—Supplement 2, Part D, “Framework for Analyzing Short and Medium-Term Macroeconomic Management of Resource Windfalls”.
  - Anand, Rahul, and Eswar S. Prasad, 2012, “How Should Emerging Market and Low-Income Country Central Banks Respond to Commodity Price Shocks?” in: Commodity Price Volatility and Inclusive Growth in Low-Income Countries, Chapter 5.
- Optional reading:
  - Sommer, Martin, et al., 2016, “Learning to Live with Cheaper Oil: Policy Adjustment in MENA and CCA Oil-Exporting Countries,” IMF Departmental Paper Series 16/3.

### L-12 Sovereign Wealth Funds
- Suggested readings and guidance:
  - IMF, 2010, Economics of Sovereign Wealth Funds: Issues for Policymakers, Introduction.
  - IMF, 2012, “Management of Resource Funds and Country Experiences” in: Macroeconomic Policy Frameworks for Resource-Rich Developing Countries—Background Paper 1-Supplement 1, pp. 55–71.
  - IMF, 2014, “Sovereign Asset-Liability Management - Guidance for Resource-Rich Economies,” IMF Policy Paper.
- Optional readings addressing governance, investment strategy, and country experiences:
  - Al-Hassan, Abdullah, et al., 2018, “Commodity-based Sovereign Wealth Funds: Managing Financial Flows in the Context of the Sovereign Balance Sheet,” IMF Working Paper 18/26.
  - Halland, Havard, et al., 2016, “Strategic Investment Funds: Opportunities and Challenges,” World Bank Policy Research Working Paper 7851.
  - Arezki, Rabah, Adnan Mazarei, and Ananthakrishnan Prasad, 2015, “Sovereign Wealth Funds in the New Era of Oil,” IMF Blog.
  - Wills, Samuel, Rick van der Ploeg, Ton van den Bremer, 2014, “Norway is right to reassess its Sovereign wealth fund,” VOX, CEPR’s Policy Portal.
  - Al-Hassan, Abdullah, et al., 2013, “Sovereign Wealth Funds: Aspects of Governance Structures and Investment Management,” IMF Working Paper 13/231.
  - Venables, Anthony, and Samuel Wills, 2016, “Resource Funds: Stabilizing, parking, and inter-generational transfer,” OxCarre Working Paper 171, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.

### L–13 Transparency in the Management of Natural Resources
- Suggested resources and indices:
  - IMF, 2007, Guide on Resource Revenue Transparency.
  - Natural Resource Governance Institute, 2017, Resource Governance Index.
  - Extractive Industries Transparency Initiative, 2018, Progress Report.
- Optional readings on transparency, civil society, and fiscal transparency:
  - Heuty, Antoine, 2012, “The Role of Transparency and Civil Society in Managing Commodities for Inclusive Growth and Development,” in: Commodity Price Volatility and Inclusive Growth in Low-Income Countries, Chapter 18.
  - IMF, 2018, Fiscal Transparency Handbook.
  - Natural Resource Governance Institute, 2014, Natural Resource Charter.

### L-14 Energy Subsidy Reform
- Suggested readings on subsidy measurement and reform lessons:
  - Coady, David, and Baoping Shang, 2015, “Energy subsidies in developing countries: Treating the disease while symptoms abate,” VOX, CEPR’s Policy Portal.
  - Coady, David, et al., 2015, “How Large Are Global Energy Subsidies?” IMF Working Paper 15/105.
  - IMF, 2013, “Energy Subsidy Reform: Lessons and Implications,” IMF Policy Paper, pp. 6–25.
  - IMF, 2013, “Energy Subsidy Reform in Sub-Saharan Africa: Experiences and Lessons,” African Departmental Paper 13/2, April, Executive Summary, Introduction, and Chapter 1.
- Optional readings on regional experiences and stocktakes:
  - IMF, 2014, “Subsidy Reform in the Middle East and North Africa: Recent Progress and Challenges Ahead,” Middle East and Central Asia Departmental Paper, Executive Summary, Introduction, and Chapter 1.
  - IMF and Reforming Energy Subsidies website, a collection of IMF works on energy subsidies and their reform.
  - Di Bella, Gabriel, et al., 2015, “Energy Subsidies in Latin America and the Caribbean: Stocktaking and Policy Challenges,” IMF Working Paper 15/30.

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_Source: https://www.imf.org/-/media/files/icd/mrc.pdf_