Direct Distribution of Resource Revenues: Worth Considering?

By Sanjeev Gupta, Alex Segura-Ubiergo, Enrique Flores

June 10, 2014

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Format: Chicago

Sanjeev Gupta, Alex Segura-Ubiergo, and Enrique Flores. Direct Distribution of Resource Revenues: Worth Considering?, (USA: International Monetary Fund, 2014) accessed December 21, 2024

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.

Subject: Currencies, Environment, Expenditure, Income, Money, National accounts, Natural resources, Population and demographics

Keywords: Cash transfers, Country authorities, Currencies, Direct redistribution, East Africa, Fiscal policy, Governments Bloated, Income, Middle East, Natural resource, Natural resources, North Africa, Resource curse, Resource exhaustibility, Resource revenue, Resource wealth, Resource wealth management, Revenues DDMs, SDN

Publication Details

Pages:

26
Volume:

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DOI:

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Issue:

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Series:

Staff Discussion Notes No. 2014/005
Stock No:

SDNEA2014005
ISBN:

9781484367209
ISSN:

2617-6750

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