This paper estimates the potential output (and the output gap) in Chile using several different methodologies. After a structural brake in 1998, the average growth rate of potential output in Chile declined from over 7 percent to 3-4 percent in the aggregate economy, but to less than 2 percent in the natural resource sector. The contributions to aggregate potential output growth of the natural resource sector and the non-natural resource sector are estimated, finding that the contribution to growth of the natural resource sector is non-linear-increasing during the 1990s, declining during the 2000s, and turning negative in the mid-2000s-despite the monotonic decrease in the share of natural resource output in aggregate output.
Mr. Ravi Balakrishnan, Sandra Lizarazo, Marika Santoro, Frederik G. Toscani, and Mr. Mauricio Vargas
and Poverty after the Commodity Boom
Box 6. Details of Natural Resource Revenue-Sharing in Latin America and Elsewhere
Table 1. Relationship between Commodity Export Prices and Inequality
Table 2. Commodity Terms of Trade and Income Share by Decile in Commodity Exporters
Table 3. Bolivia: Composition of Household Income per Capita
Table 4. Change in Value of NaturalResouce Production and Natural Resource Revenues in Brazilian Municipalities, 2000–10
Table 5. Impact of Natural Resource Boom on Producer Municipalities in Brazil
taxes payable by natural resource enterprises
Profits of fiscal monopolies Profits of natural resource fiscal monopolies
Taxes on use of goods and on permission to use goods or perform activities
Motor vehicle taxes Motor vehicle taxes pyable by naturalresouce enterprises
Othe r taxes on use of goods and on permi ssi on to use goods or perform activities Business and professional licenses payable by natural resource enterprises Pollution taxes payable by natural resource enterprises
Othe r taxes on
The paper presents an update on the status of the standard template to collect data on government revenues from natural resources, originally presented to the Executive Board in January 2014. The paper discusses: (i) the field-testing of the standard template in six countries, which confirmed the feasibility of applying it more broadly; (ii) the final version of the template based on outcomes of consultation with the international community and the field-testing visits; and (iii) the adoption of the template by the Extractive Industries Transparency Initiative (EITI) International Secretariat as a mandatory reporting requirement for its member countries. The standard template serves as a companion to the Guide to Analyze Natural Resources in the National Accounts. The standard template was developed to support fiscal policy formulation and analysis in resource-rich economies, which constitute about one third of the Fund’s membership. The standard template is based on the revenue classification of the Government Finance Statistics Manual 2014, thereby facilitating the collection of resource revenue data in methodologically sound, analytically relevant, and cross-country comparable format.
Mr. Ravi Balakrishnan, Sandra Lizarazo, Marika Santoro, Mr. Frederik G Toscani, and Mr. Mauricio Vargas
Over the past decades, inequality has risen not just in advanced economies but also in many emerging market and developing economies, becoming one of the key global policy challenges. And throughout the 20th century, Latin America was associated with some of the world’s highest levels of inequality. Yet something interesting happened in the first decade and a half of the 21st century. Latin America was the only region in the World to have experienced significant declines in inequality in that period. Poverty also fell in Latin America, although this was replicated in other regions, and Latin America started from a relatively low base. Starting around 2014, however, and even before the COVID-19 pandemic hit, poverty and inequality gains had already slowed in Latin America and, in some cases, gone into reverse. And the COVID-19 shock, which is still playing out, is likely to dramatically worsen short-term poverty and inequality dynamics. Against this background, this departmental paper investigates the link between commodity prices, and poverty and inequality developments in Latin America.