How to Design a Fiscal Strategy in a Resource-Rich Country

By Olivier Basdevant, John Hooley, Eslem Imamoglu

March 9, 2021

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Olivier Basdevant, John Hooley, and Eslem Imamoglu. How to Design a Fiscal Strategy in a Resource-Rich Country, (USA: International Monetary Fund, 2021) accessed November 21, 2024

Summary

This How to Note provides operational guidance for policymakers and IMF staff teams on designing—or revising—a fiscal strategy in resource-rich countries (RRC). Properly managed, resource revenue can support fiscal sustainability and development and equity objectives. Resource revenues also create significant stabilization challenges for fiscal policy because of their size, uncertainty, volatility, and finite nature. The guidance in this note is intended to be general and applicable to RRCs with a range of income levels, resource endowments, and macroeconomic contexts. It is designed primarily to help policymakers analyze the trade-offs associated with alternative fiscal paths and select the right fiscal strategy, given country-specific circumstances.

Subject: Expenditure, Fiscal policy, Fiscal stance, Fiscal sustainability, Natural resources

Keywords: Commodity revenue, FADHTN, HTN, Liquid asset, Resource consumption, Resource revenue, Resource wealth

Publication Details

Pages:

27
Volume:

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DOI:

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Issue:

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Series:

How-To Note No. 2021/001
Stock No:

HTNEA2021001
ISBN:

9781513568799
ISSN:

2522-7912

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