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Direct Distribution of Resource Revenues: Worth Considering?

Author

Listed:
  • Mr. Sanjeev Gupta
  • Mr. Alex Segura-Ubiergo
  • Enrique Flores

Abstract

Some scholars have argued that direct distribution of natural resource revenues to the population would help resource-rich countries escape the “resource curse.” This discussion note analyzes whether this proposal is a viable policy alternative for resource-rich countries. The first priority for policymakers is to establish fiscal policy objectives to support macroeconomic stability and development objectives. In this regard, the establishment of an adequate fiscal framework that informs decisions on how much to save and invest, or how to smooth out revenue volatility, and deal with exhaustibility issues should precede any discussion of direct distribution of resource wealth to the population.

Suggested Citation

  • Mr. Sanjeev Gupta & Mr. Alex Segura-Ubiergo & Enrique Flores, 2014. "Direct Distribution of Resource Revenues: Worth Considering?," IMF Staff Discussion Notes 2014/005, International Monetary Fund.
    • Handle: RePEc:imf:imfsdn:2014/005
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    Cited by:

    1. Anthony J. Venables, 2016. "Using Natural Resources for Development: Why Has It Proven So Difficult?," Journal of Economic Perspectives, American Economic Association, vol. 30(1), pages 161-184, Winter.
    2. Amir Sadeghi, 2018. "How Public Investment Could Help Strengthen Iran’s Growth Potential: Issues and Options," IMF Working Papers 2018/129, International Monetary Fund.
    3. Salehi-Isfahani, Djavad & Mostafavi-Dehzooei, Mohammad H., 2018. "Cash transfers and labor supply: Evidence from a large-scale program in Iran," Journal of Development Economics, Elsevier, vol. 135(C), pages 349-367.

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