Resource Rents, Redistribution, and Halving Global Poverty: The Resource Dividend
AbstractSummary This paper considers the proposal that each country distributes its resource rents directly to citizens as a universal and unconditional cash transfer, or Resource Dividend, and estimates its potential impact on global poverty for the years 2000-06. Using a global dataset on resource rents and the distribution of income, I find that if every developing country implemented the policy then the number of people living below $1-a-day would be cut by between 27% and 66%, depending on the year and the assumptions made. Looking ahead, poverty could be better than halved as long as commodity prices do not drop below their 2004 level.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal World Development.
Volume (Year): 39 (2011)
Issue (Month): 4 (April)
Contact details of provider:
Web page: http://www.elsevier.com/locate/worlddev
global poverty inequality redistribution natural resource curse resource wealth income distribution;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dilip Ratha & Sanket Mohapatra & K. M. Vijayalakshmi & Zhimei Xu, 2007. "Remittance Trends 2007," World Bank Other Operational Studies 11024, The World Bank.
- Halvor Mehlum & Karl Moene & Ragnar Torvik, 2002.
"Institutions and the resource curse,"
GE, Growth, Math methods
- Mehlum, Halvor & Moene, Karl-Ove & Torvik, Ragnar, 2003. "Institutions and the resource curse," Memorandum 29/2002, Oslo University, Department of Economics.
- Halvor Mehlum & Karl Moene & Ragnar Torvik, 2004. "Institutions and the Resource Curse," DEGIT Conference Papers c009_012, DEGIT, Dynamics, Economic Growth, and International Trade.
- Halvor Mehlum & Karl Moene & Ragnar Torvik, 2002. "Institutions and the resource curse," Development and Comp Systems 0210003, EconWPA.
- Stijns, Jean-Philippe C., 2001.
"Natural Resource Abundance And Economic Growth Revisited,"
Berkeley Economics Dissertations-in-Progress Series
25127, University of California, Berkeley, Department of Agricultural and Resource Economics.
- Stijns, Jean-Philippe C., 2005. "Natural resource abundance and economic growth revisited," Resources Policy, Elsevier, vol. 30(2), pages 107-130, June.
- Jean-Philippe Stijns, 2001. "Natural Resource Abundance And Economic Growth Revisited," Development and Comp Systems 0103001, EconWPA.
- Thomas Palley, 2004. "Oil and the Case of Iraq," Challenge, M.E. Sharpe, Inc., vol. 47(3), pages 94-112, May.
- Emmanuel Skoufias & Vincenzo Di Maro, 2008.
"Conditional Cash Transfers, Adult Work Incentives, and Poverty,"
Journal of Development Studies,
Taylor & Francis Journals, vol. 44(7), pages 935-960.
- Skoufias, Emmanuel & di Maro, Vincenzo, 2006. "Conditional cash transfers, adult work incentives, and poverty," Policy Research Working Paper Series 3973, The World Bank.
- Giovanni Andrea Cornia & Frances Stewart, 1993.
"Two Errors of Targeting,"
Innocenti Occasional Papers, Economic Policy Series
iopeps93/54, UNICEF Innocenti Research Centre.
- Standing Guy, 2008. "How Cash Transfers Promote the Case for Basic Income," Basic Income Studies, De Gruyter, vol. 3(1), pages 1-30, July.
- Thomas Pogge, 2001. "Eradicating Systemic Poverty: Brief for a global resources dividend," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 2(1), pages 59-77.
- Gelbach Jonah B. & Pritchett Lant, 2002. "Is More for the Poor Less for the Poor? The Politics of Means-Tested Targeting," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 2(1), pages 1-28, July.
- Arvind Subramanian & Xavier Sala-i-Martin, 2003. "Addressing the Natural Resource Curse," IMF Working Papers 03/139, International Monetary Fund.
- Xavier Sala-i-Martin & Arvind Subramanian, 2013.
"Addressing the Natural Resource Curse: An Illustration from Nigeria,"
Journal of African Economies,
Centre for the Study of African Economies (CSAE), vol. 22(4), pages 570-615, August.
- Xavier Sala-i-Martin & Arvind Subramanian, 2003. "Addressing the Natural Resource Curse: An Illustration from Nigeria," NBER Working Papers 9804, National Bureau of Economic Research, Inc.
- Xavier Sala-i-Martín & Arvind Subramanian, 2003. "Addressing the natural resource curse: An illustration from Nigeria," Economics Working Papers 685, Department of Economics and Business, Universitat Pompeu Fabra.
- Xavier Sala-i-Martin & Arvind Subramanian, 2003. "Addressing the natural resource curse: An illustration from Nigeria," Discussion Papers 0203-15, Columbia University, Department of Economics.
- Dollar, David & Kraay, Aart, 2001.
"Growth is good for the poor,"
Policy Research Working Paper Series
2587, The World Bank.
- Ravallion, Martin, 2007. "How relevant is targeting to the success of an antipoverty program ?," Policy Research Working Paper Series 4385, The World Bank.
- Jeffrey D. Sachs & Andrew M. Warner, 1995.
"Natural Resource Abundance and Economic Growth,"
NBER Working Papers
5398, National Bureau of Economic Research, Inc.
- Ravallion, Martin, 2009.
"Why don't we see poverty convergence ?,"
Policy Research Working Paper Series
4974, The World Bank.
- Datt, Gaurav, 1998. "Computational tools for poverty measurement and analysis," FCND discussion papers 50, International Food Policy Research Institute (IFPRI).
- van Wijnbergen, Sweder J G, 1984. "The 'Dutch Disease': A Disease after All?," Economic Journal, Royal Economic Society, vol. 94(373), pages 41-55, March.
- Anne D. Boschini & Jan Pettersson & Jesper Roine, 2007.
"Resource Curse or Not: A Question of Appropriability,"
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 109(3), pages 593-617, 09.
- Boschini, Anne & Pettersson, Jan & Roine, Jesper, 2003. "Resource curse or not: A question of appropriability," Working Paper Series in Economics and Finance 534, Stockholm School of Economics.
- Anne D. Boschini & Jan Pettersson & Jesper Roine, 2006. "Resource curse or not: A question of appropriability," DEGIT Conference Papers c011_050, DEGIT, Dynamics, Economic Growth, and International Trade.
- Jan Gunning & Paul Collier, 1996. "Policy towards Commodity Shocks in Developing Countries," IMF Working Papers 96/84, International Monetary Fund.
- Christa N. Brunnschweiler & Erwin H. Bulte, 2006.
"The Resource Curse Revisited and Revised: A Tale of Paradoxes and Red Herrings,"
CER-ETH Economics working paper series
06/61, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
- Brunnschweiler, Christa N. & Bulte, Erwin H., 2008. "The resource curse revisited and revised: A tale of paradoxes and red herrings," Journal of Environmental Economics and Management, Elsevier, vol. 55(3), pages 248-264, May.
- Banerjee, Abhijit V & Duflo, Esther, 2003.
" Inequality and Growth: What Can the Data Say?,"
Journal of Economic Growth,
Springer, vol. 8(3), pages 267-99, September.
- Gareth Myles, 2000. "Taxation and economic growth," Fiscal Studies, Institute for Fiscal Studies, vol. 21(1), pages 141-168, March.
- Fabio Veras Soares & Rafael Perez Ribas & Rafael Guerreiro Osório, 2007. "Evaluating the Impact of Brazil?s Bolsa Família: Cash Transfer Programmes in Comparative Perspective," Publications 1, International Policy Centre for Inclusive Growth.
- Ning Ding & Barry C. Field, 2005. "Natural Resource Abundance and Economic Growths," Land Economics, University of Wisconsin Press, vol. 81(4).
- Ravallion, Martin, 2003.
"Targeted transfers in poor countries : revisiting the tradeoffs and policy options,"
Policy Research Working Paper Series
3048, The World Bank.
- Martin Ravallion, 2003. "Targeted transfers in poor countries : revisiting the trade-offs and policy options," Social Protection Discussion Papers 27869, The World Bank.
- Sandbu, Martin E., 2006. "Natural wealth accounts: A proposal for alleviating the natural resource curse," World Development, Elsevier, vol. 34(7), pages 1153-1170, July.
- Sudhir Anand & Paul Segal, 2008. "What Do We Know about Global Income Inequality?," Journal of Economic Literature, American Economic Association, vol. 46(1), pages 57-94, March.
- Shantayanan Devarajan, Hélène Ehrhart, Tuan Minh Le, Gaël Raballan, 2011. " Direct Redistribution, Taxation, and Accountability in Oil-Rich Economies- A Proposal- Working Paper 281," Working Papers 281, Center for Global Development.
- Segal, Paul, 2012.
"How to spend it: Resource wealth and the distribution of resource rents,"
Elsevier, vol. 51(C), pages 340-348.
- Paul Segal, 2011. "How to spend it: resource wealth and the distribution of resource rents," LSE Research Online Documents on Economics 55664, London School of Economics and Political Science, LSE Library.
- Lakner, Christoph & Milanovic, Branko, 2013. "Global income distribution : from the fall of the Berlin Wall to the great recession," Policy Research Working Paper Series 6719, The World Bank.
- Massimiliano Mazzanti & Roberto Zoboli, 2012. "A Political Economy Approach to Resource Taxation: Weak Sustainability, Revenue Recycling and Regional Planning," Working Papers 201202, University of Ferrara, Department of Economics.
- Nina Korte, 2011. "It’s Not Only Rents: Explaining the Persistence and Change of Neopatrimonialism in Indonesia," GIGA Working Paper Series 167, GIGA German Institute of Global and Area Studies.
- Mohammad Reza Farzanegan & Mohammad Habibpour, 2014.
"Direct Distribution of Rents and the Resource Curse in Iran: A Micro-econometric Analysis,"
MAGKS Papers on Economics
201425, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
- Mohammad Reza Farzanegan & Mohammad Habibpour, 2014. "Direct Distribution of Rents and the Resource Curse in Iran: A Micro-econometric Analysis," CESifo Working Paper Series 4824, CESifo Group Munich.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.