The Case for Direct Transfers of Resource Revenues in Africa

17 Pages Posted: 14 Dec 2013

See all articles by Shantayanan Devarajan

Shantayanan Devarajan

World Bank Middle East and North Africa Region

Marcelo M. Giugale

World Bank

Helene Ehrhart

Banque de France

Tuan Minh Le

World Bank

Huong Nguyen

World Bank - Africa Region

Date Written: July 11, 2013

Abstract

Noting that Africa’s resource-rich countries have not translated their wealth into sustained economic growth and poverty reduction, this paper shows that by transferring a portion of resource-related government revenues uniformly and universally as direct payments to the population, some countries could increase both private consumption and the provision of public goods, and thereby reduce poverty and enhance social welfare. We make the case based on theoretical considerations and explore how these direct dividend payments would look in practice in a group of selected African countries.

Keywords: Africa, extractive industries, poverty, public goods, direct dividend transfers

JEL Classification: H41, H5, I3, O10, O13, O15, Q3

Suggested Citation

Devarajan, Shantayanan and Giugale, Marcelo M. and Ehrhart, Helene and Le, Tuan Minh and Nguyen, Huong, The Case for Direct Transfers of Resource Revenues in Africa (July 11, 2013). Center for Global Development Working Paper No. 333. Available at SSRN: https://ssrn.com/abstract=2364568 or http://dx.doi.org/10.2139/ssrn.2364568

Shantayanan Devarajan (Contact Author)

World Bank Middle East and North Africa Region ( email )

1818 H Street, NW
Washington, DC 20433
United States

Marcelo M. Giugale

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States
202-473-7738 (Phone)
202-522-2112 (Fax)

Helene Ehrhart

Banque de France ( email )

Paris
France

Tuan Minh Le

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Huong Nguyen

World Bank - Africa Region ( email )

1818 H Street
Washington, DC 20433
United States

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