Macro-Fiscal Gains from Anti-Corruption Reforms in the Republic of Congo

Author/Editor:

Giovanni Melina ; Hoda Selim ; Concepcion Verdugo-Yepes

Publication Date:

June 3, 2019

Electronic Access:

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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.

Summary:

This paper argues that oil revenue management and public investment in Congo are vulnerable to corruption as a result of limited transparency and accountability. Corruption has potentially contributed to poor macro-fiscal outcomes. The paper acknowledges the authorities’ anti-corruption efforts made so far and proposes further critical reforms to reduce remaining vulnerabilities. Using a dynamic stochastic general equilibrium model results show that, depending on the reforms adopted, the potential additional growth can range between 0.8 to 1.8 percent per year over the next 10 years, and debt can decline by 2.25 to 3 percent of GDP per year over the same period. These results suggest that macrofiscal gains from anti-corruption reforms could be substantial even under conservative reform scenarios.

Series:

Working Paper No. 19/121

Subject:

English

Publication Date:

June 3, 2019

ISBN/ISSN:

9781498312042/1018-5941

Stock No:

WPIEA2019121

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

29

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