Natural Resource Wealth: The Challenge of Managing a Windfall
38 Pages Posted: 22 Dec 2011
Date Written: December 2011
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