Natural Resource Wealth: The challenge of managing a windfall

Nov 2011 | 75

Authors: Anthony Venables, Rick Van der Ploeg


Many countries have failed to use natural resource wealth to promote growth and development. They have been damaged by volatility of revenues, have failed to save a sufficiently high proportion of their resource revenues and failed to make high return investments to support diversification of their economies. This paper explores the reasons for these failures and discusses policies to improve performance.

JEL Codes: E60, F34, F35, F43, H21, H63, O11, Q33

Keywords: resource curse, managing windfalls, fiscal rules, volatility, absorptive capacity, Dutch disease, public investment


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