features distinguish the taxation of forestry from regular taxes: First, government plays a dual role as sovereign tax authority but also as the owner of the natural resource (forests); second, tax instrumentsintheforestrysectoraim at determining a price for the right to extract, compared to the goal of traditional taxes to raise a given amount of revenue while minimizing economic distortions, achieve equity, and keep administrative costs low.
63. The literature recognizes that in the ideal world of perfect markets and information, auctions would be the best
This Selected Issues and Statistical Appendix paper examines recent economic developments and medium-term outlook for Liberia. This paper focuses on economic developments during 2003 and 2004 and the medium-term challenges of reconstruction. The paper explores the pros and cons of adopting full (de jure) dollarization in Liberia. It reviews the theoretical arguments for and against adopting dollarization and the associated empirical evidence. The choices of monetary and exchange rate regimes made by other post-conflict countries are presented. The paper also assesses whether Liberia, in its current post-conflict situation, could benefit from dollarization.