Davis et al - Fiscal Challenges in Oil Producing Countries: An Overview

Davis, J. M., Ossowski, R., and Fedilino, A., Fiscal Challenges in Oil-Producing Countries: An Overview, in Fiscal Policy Formulation and Implementation in Oil Producing Countries (Davis, J.M., Ossowski, R., and Fedilino, A., (eds.) Washington D.C.: IMF 2003)

                                          

Developing countries with abundant oil and gas resources have often struggled to manage their resources optimally and translate the oil riches into sustainable wealth. The majority of these countries have continued to live dependently on oil revenues whilst battling with the difficult challenge of formulating and implementing efficient fiscal policies.

The editors of this book give a general overview of the fiscal challenges faced by oil producing countries in the management of their oil resources. Oil price volatility and its impact on fiscal revenue; the varied nature of oil producing countries; the challenge of designing and implementing sustainable fiscal policies; and the political and institutional context within which these policies are made are all examined in the book.

The editors divide the book into four parts. Part I examines fundamental macroeconomic and fiscal issues and institutional factors associated with fiscal policy formulation and implementation in oil producing countries [see Barnett, S. and Ossowski and Eifert, B., Gelb, A., and Tallroth, N. B summaries of relevant chapters 3 and 4 respectively].  Part II addresses more specific issues of oil revenue management, including the design of an effective fiscal regime [x-reference], the performance of state oil companies [Chapter 7] and the complex issues relating to the assignment of oil revenues in federal states [Chapters 8-10]. Part III focuses on institutional arrangements for dealing with oil price instability, in particular the use of oil funds and risk mitigating market instruments like hedging [Chapters 11-14]. Part IV concludes with pricing and subsidy issues relating to domestic petroleum.  Throughout the book offers recommendations for dealing with the issues it raises.

Comments
No comments.
button-icon
goxi