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Countries rich in natural resources are often looked at with envy: they face few financial constraints and that should speed their development path. But the reality is less rosy. Countries with an abundance of natural resources—typically oil, gas or minerals—have, on average, performed less well than comparable non-resource rich countries.
That raises one of the perennial questions in economic policymaking. How to manage the economic and social challenges that stem from resource wealth? Or, to borrow the words of Professor Thorvaldur Gylfason (University of Iceland), how to prevent “nature’s bounty” from “becoming the curse of the common people”? Continue reading
Filed under: Africa, Civil Society, International Monetary Fund, Low-income countries, Middle East | Tagged: development, distribution of profits, exchange rate regimes, exploration costs, fiscal policy, gas, good governance, High Level Seminar on Natural Resources, investment strategy, minerals, monetary policy, natural resources, oil, resource wealth, sovereign wealth funds, stable macroeconomic environment, technical assistance, training | 3 Comments »