Direct Distribution of Resource Revenues: Worth Considering?
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Disclaimer: This Staff Discussion Note represents the views of the authors and does not necessarily represent IMF views or IMF policy. The views expressed herein should be attributed to the authors and not to the IMF, its Executive Board, or its management. Staff Discussion Notes are published to elicit comments and to further debate.
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. 2014/005
Subject:
Currencies Environment Expenditure Income Money National accounts Natural resources Population and demographics
English
Publication Date:
June 10, 2014
ISBN/ISSN:
9781484367209/2617-6750
Stock No:
SDNEA2014005
Pages:
26
Please address any questions about this title to publications@imf.org