DP8694 Natural resource wealth: the challenge of managing a windfall
|Author(s):||Frederick van der Ploeg, Anthony J Venables|
|Publication Date:||December 2011|
|Keyword(s):||absorptive capacity, Dutch disease, fiscal rules, managing windfalls, public investment, resource curse, volatility|
|JEL(s):||E60, F34, F35, F43, H21, H63, O11, Q33|
|Programme Areas:||International Macroeconomics, Development Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=8694|
Many countries have failed to use natural resource wealth to promote growth and development. They have been damaged by volatility of revenues, have failed to save a sufficiently high proportion of their resource revenues and failed to make high return investments to support diversification of their economies. This paper explores the reasons for these failures and discusses policies to improve performance.