Despite its vast oil wealth, central Africa still struggles to sustain strong, inclusive economic growth and to generate sufficient employment opportunities, particularly for its fast-growing youth population. Drawing on new research, Oil Wealth in Central Africa lays out the macroeconomic and growth challenges facing the region; examines oil wealth management and its implications for poverty reduction; and includes four case studies that exemplify lessons learned.
for macroeconomic stability and will present many fiscal policy challenges in both advanced and emerging economies in coming years. This book provides insights into these challenges and potential policy responses, with cross-country analysis and case studies.
Oil Wealth in Central Africa: Policies for Inclusive Growth
Despite its vast oil wealth, central Africa still struggles to sustain strong, inclusive economic growth. This book lays out the macroeconomic and growth challenges facing the region; and examines oilwealthmanagement and its
resource wealth in natural resource abundant countries, and outlines a medium- and long-term policy strategy for oilwealthmanagement in Azerbaijan.
3. The development of a strong domestic banking system and liquid financial markets is a key ingredient to ensuring balanced and sustainable economic growth. Chapter III reviews the trends in monetization and financial deepening in Azerbaijan, and compares those trends with the rest of the BRO (Baltics, Russia and other countries of the Former Soviet Union). Despite Azerbaijan’s impressive achievements on the
fields projected to fall to less than 50 million barrels by 2020 ( Figure 11.3 , right panel).
OilWealthManagement—The Absence of Institutions
Despite Congo’s rising oil income and wealth, institutions for managing that wealth are weak at best. The national oil company (SNPC) was established in 1998 to oversee the country’s oil interests. However, oil continues to be perceived for the most part as a source of cash flow to finance spending rather than as wealth. No national oil strategy and no fiscal institutions govern the spending of oil wealth, and fiscal
2005 and is estimated to have been 37 percent in 2010.
This chapter analyzes oilwealthmanagement in Gabon to understand why, with its ample natural resources, the country has not attained a level of social welfare commensurate with its income level. Mainly, Gabon needs to adjust its economic and social policies by stepping up its efforts to diversify the economy and strengthen its social infrastructure. To ensure that the country receives value for the investment these steps require, the government needs to build solid fiscal institutions to anchor fiscal
This Selected Issues paper and Statistical Appendix for Azerbaijan aims to provide a guide to the management of Azerbaijan’s expected natural resource-generated windfall. The paper provides information on Azerbaijan’s endowment of oil and gas deposits and the projected revenue stream, and highlights the common characteristics of policies leading to the mismanagement of natural resource wealth in natural resource-abundant countries. It also outlines a medium- and long-term policy strategy for oil wealth management in Azerbaijan.
natural resource wealth in natural resource abundant countries. Section II-D explains the institutional arrangements of oil revenue management in Azerbaijan and estimates oil and gas revenue prospects for the country. Section II-E outlines a medium and long term policy strategy for oilwealthmanagement in Azerbaijan, building on the lessons in Section II-C. Section II-F concludes.
B. Economic Theory and Natural Resource Booms
10. Studies of past experiences of countries rich in exhaustible natural resources reveals that natural resource-driven booms have often
This paper discusses a few selected issues of the Nigerian economy—options and strategies for a fiscal rule for oil wealth management, enhancing the effectiveness of monetary policy, and recent developments and prospects of capital flow. Despite its diversified economy, Nigeria’s fiscal policy is heavily dependent on the oil sector. This paper explores options for a formalized rule-based approach to setting a “depoliticized” budget oil price. Two boom-and-bust episodes since early 2000 have highlighted the challenges in the current monetary policy framework. Nigeria has also been characterized by sizable capital outflows, which have diminished recently.