Natural Resource Wealth: The Challenge of Managing a Windfall

Abstract:     
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.

Number of Pages in PDF File: 38

Keywords: absorptive capacity, Dutch disease, fiscal rules, managing windfalls, public investment, resource curse, volatility

JEL Classification: E60, F34, F35, F43, H21, H63, O11, Q33

working papers series