Direct Distribution of Resource Revenues: Worth Considering?

Gupta, Sanjeev; Segura-Ubiergo, Alex; Flores, Enrique

doi:10.5089/9781484367209.006

Cited by 16 publications

(9 citation statements)

References 30 publications

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“…For example, see Sala-i-Martín and Subramanian (2003), Sandbu (2006), Segal (2011), Moss (2011), Devarajan and others (2011), Rodríguez, Morales, and Monaldi (2012), and Giugale and Nguyen (2014). Gupta, Segura-Ubiergo, and Flores (2014) provide a survey of the issues and international experience and offer a preliminary assessment.…”

Section: Notesmentioning

confidence: 99%

Fiscal Management in Resource-Rich Countries: Essentials for Economists, Public Finance Professionals, and Policy Makers

Ossowski¹,

Halland²

2016

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World Bank Studies are published to communicate the results of the Bank's work to the development community with the least possible delay. The manuscript of this paper therefore has not been prepared in accordance with the procedures appropriate to formally edited texts. This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved.

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Section: Notesmentioning

confidence: 99%

Fiscal Management in Resource-Rich Countries: Essentials for Economists, Public Finance Professionals, and Policy Makers

Ossowski¹,

Halland²

2016

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“…First, scaling up too abruptly leads to inefficiencies. For example, selected projects may be of lower quality, making the entire process more inefficient (Pritchett, 2000;Dabla-Norris et al, 2012;Gupta et al, 2014, Qu et al, 2014. Second, increasing investment requires building fiscal buffers, so that in case of adverse shocks, such as an unexpected decrease in oil revenue, the investment plan could still be carried out without compromising fiscal stability.…”

Section: Introductionmentioning

confidence: 99%

How Public Investment Could Help Strengthen Iran's Growth Potential: Issues and Options

Sadeghi

2018

IMF Working Papers

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Public investment is key to growth in developing, oil-exporting countries, and oil revenue is an important source of finance for public investment. Looking at various approaches (gradual, aggressive, and conservative) to scaling up public investment in Iran under different oil price scenarios (baseline and adverse), this paper shows that because of absorptive capacity constraints and investment inefficiencies, the growth impact of an aggressive strategy is not significantly different from a conservative or a gradual design. Meanwhile, its costs, in terms of fiscal adjustment, are significantly higher, especially during periods when oil prices are low. Furthermore, an improvement in investment efficiency has a significant positive impact on growth outcomes and leads to higher private consumption and investment. Introducing an oil fund, on the other hand, can help contain the size of fiscal adjustments, although it results in a larger appreciation of real exchange rates and deterioration in the current account balance.

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“…Furthermore, if cash transfers can address urgent needs, they cannot secure lasting benefi ts. Thus, this model fails to address other causes of poverty, such as access to education and civil rights, and is not suffi cient to ensure economic well-being in the long run, therefore lacking intergenerational equity (Gupta et al 2014;Bunting and Truelove 1970;Hartwick 1977Hartwick , 1978.…”

Section: Assessing the Revenue Allocation Strategies According To Susmentioning

confidence: 99%

“…Diff erent operational defi nitions exist such as lump sum payments, conditional cash transfers, and dividends (see Segal 2012b for an in-depth discussion of DDM). This system is likely the simplest allocation model and presents the potential to reduce social and revenue inequalities, poverty-especially extreme poverty-and could provide greater social and income security to the most vulnerable (Gupta et al 2014;Standing 2008;Standing 2014;DFID 2011;Segal 2011Segal , 2012bGibson and O'Faircheallaigh 2010;O'Faircheallaigh 2010O'Faircheallaigh , 2012Moss 2010;Soares et al 2007;Schubert and Huijbregts 2006;Morley and Coady 2003;Bunting and Truelove 1970). Moreover, the DDM provides benefi ciaries with the freedom to decide how to spend the money, may it be for urgent needs or long-term investments (O'Faircheallaigh 2010(O'Faircheallaigh , 2012Moss 2010;Gibson and O'Faircheallaigh 2010;Weinthal and Jones Luong 2006;Palley 2003).…”

Section: Direct Payments To Individualsmentioning

confidence: 99%

“…Regarding governance and democracy, direct payments could certainly contribute to reducing corruption and rent-seeking behaviour, leading to a more responsible and transparent governance of the funds (Gupta, Segura-Ubiergobas, and Flores 2014;Segal 2012b, 345;Moss 2010;Weinthal and Jones Luong 2006;Palley 2003). Additionally, this model could have a positive impact on political participation and stronger institutions since it would increase the interest of citizens in the management of the resource revenues due to their personal stake in the profi t (Gupta et al 2014;Standing 2014;Devarajan et al 2011;Gillies 2010;Moss 2010;Weinthal and Jones Luong 2006;Mahon 2005;Birdsall and Subramanian 2004;Palley 2003;Sala-i-Martin and Subramanian 2003).…”

Section: Direct Payments To Individualsmentioning

confidence: 99%

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Impact and Benefit Agreement (IBA) Revenue Allocation Strategies for Indigenous Community Development

Rodon

Schott

Lemus-Lauzon³

2018

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This ar cle analyzes the diff erent modes of resource revenue alloca on and their impacts on Indigenous communi es and sustainable development. A er a literature review of the diff erent distribu on and investment models and their posi ve and nega ve impacts for communi es, we assess each model's level of sustainability. In the second sec on, we present the results of a survey and follow-up interviews conducted with twenty-one representa ves of the fortytwo Canadian First Na ons that had signed an Impact and Benefi t Agreement by 2016. In most surveyed communi es, the trust funds are directly managed by the poli cal authority thus providing no insula on from poli cal infl uence. The survey also shows that some Indigenous communi es are inves ng in programs that should be funded by the federal and provincial or territorial governments, which a ests to the chronic lack of investment in Indigenous communi es in Canada. Finally, whatever the choice of distribu on or investment strategy, in order to foster sustainable development communi es need to ensure that the lost natural capital-both non-renewable resources deple on and the environmental damage created by the opera ons-will be replaced for future genera ons.

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Direct Distribution of Resource Revenues: Worth Considering?

Cited by 16 publications

References 30 publications

Fiscal Management in Resource-Rich Countries: Essentials for Economists, Public Finance Professionals, and Policy Makers

Fiscal Management in Resource-Rich Countries: Essentials for Economists, Public Finance Professionals, and Policy Makers

How Public Investment Could Help Strengthen Iran's Growth Potential: Issues and Options

Impact and Benefit Agreement (IBA) Revenue Allocation Strategies for Indigenous Community Development

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