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

By Giovanni Melina, Hoda Selim, Concha Verdugo Yepes

June 3, 2019

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Giovanni Melina, Hoda Selim, and Concha Verdugo Yepes. Macro-Fiscal Gains from Anti-Corruption Reforms in the Republic of Congo, (USA: International Monetary Fund, 2019) accessed December 22, 2024

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.

Subject: Commodities, Corruption, Crime, Expenditure, Oil, Oil, gas and mining taxes, Public investment and public-private partnerships (PPP), Public investment spending, Taxes

Keywords: Africa, Authorities in the Republic of Congo, Congo, Congolese authority, Corruption, DIGNAR, Firm, Gas and mining taxes, Global, Government, Government bureaucracy, Government contract, Government oil, Government share, Investment, Investment efficiency, Investment project cycle, Learning by doing, Oil, Oil curse, PFM, Public investment and public-private partnerships (PPP), Public investment efficiency, Public investment spending, Share of oil production, Share of profits, Small open economy DSGE Model, Sub-Saharan Africa, WP

Publication Details

Pages:

29
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2019/121
Stock No:

WPIEA2019121
ISBN:

9781498312042
ISSN:

1018-5941

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