Natural Resource Wealth: The Challenge of Managing a Windfall

van der Ploeg, Rick; Venables, Anthony J.

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Natural Resource Wealth: The Challenge of Managing a Windfall

CEPR Discussion Paper No. DP8694

38 Pages Posted: 22 Dec 2011

See all articles by Rick van der Ploeg

Anthony J. Venables

University of Oxford; Centre for Economic Policy Research (CEPR)

Date Written: December 2011

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.

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

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

Suggested Citation: Suggested Citation

van der Ploeg, Frederick and Venables, Anthony J., Natural Resource Wealth: The Challenge of Managing a Windfall (December 2011). CEPR Discussion Paper No. DP8694, Available at SSRN: https://ssrn.com/abstract=1976036