Countries with large nonrenewable resources can benefit significantly from them, but reliance on revenues from these sources poses major challenges for policy makers. If you are a senior ministry of finance official in a resource-rich country, what are the challenges that you would face and Consider some of the issues that you would likely encounter:
For many resource abundant countries, large and unpredictable fluctuations in fiscal revenues are a fact of life. Resource revenues are highly volatile and subject to uncertainty. Fiscal policies will need to be framed to support macroeconomic stability and sustainable growth, while sensibly managing fiscal risks. Also, there is a question of how to decouple public spending (which should be relatively stable) from the short-run volatility of resource prices.
These are some of the views and reports relevant to our readers that caught our attention this week.
"The future of development. What a title. It's fraught with hostages to fortune, bear traps and day dreams.
I pick 2030 as "the future". Partly because, 15 years after the first set of millennium development goal (MDG) targets I expect poverty (percent and numbers) in Asia to be much lower, and in Africa I expect the decline to be strong too. But partly because it is far enough away to think a bit more freely."
- The Guardian
- aid transparency
- Transparency International
- civil society
- Ars Technica
- Independent Commission for Aid Impact
- ICT Works
- Digital Diaspora
- economis growth
The global economic downturn and the consequent pessimistic outlook for exports in developing countries like Bangladesh have reinvigorated voices for protectionism. Even pro-trade minds have vented their skepticism about trade liberalization, as if the punch of the ongoing crisis could be shielded with the help of an embargo on trade with the rest of the world!
Such thoughts, derived from the gloomy prospects of exports, ignore the potential benefits drawn through the imports and disregard the lessons learned from history- that economic isolation leads to further impoverishment.