Ecuador: Fiscal Stabilization Funds and Prospects
AbstractAmongst a favorable economic environment, Ecuador's exceptional oil revenues have bolstered fiscal accounts. Several legal changes have created or modified funds or accounts aimed at saving, earmarking, or using oil-related revenues. This paper discusses oil-related fiscal policies, stabilization funds, and options in Ecuador. It reviews existing schemes, describes fiscal trends and underlying vulnerabilities, and offers trends and prospects for the oil-related funds and fiscal accounts. Assessing the weaknesses of the fiscal stabilization framework, it offers suggestions for improving efficiency in the use of exceptional fiscal revenues. It calls for enforceable fiscal responsibility rules, an enhanced accountability for oil revenues and the budget process, market mechanisms to hedge against oil price volatility, and a strengthened planning and prioritization of public investment.
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Bibliographic InfoPaper provided by Inter-American Development Bank in its series IDB Publications with number 73238.
Date of creation: Sep 2008
Date of revision:
Fiscal Policy; Public Administration & Policy Making; Petroleum; Coal & Natural Gas;
Other versions of this item:
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
- L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels
- L78 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Government Policy
- Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
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- Inter-American Development Bank (IDB) & World Bank (WB), 2004. "Ecuador: Creating Fiscal Space for Poverty Reduction: A Fiscal Management and Public Expenditure Review. Volume I," IDB Publications 5618, Inter-American Development Bank.
- Gordon, Roger & Li, Wei, 2009.
"Tax structures in developing countries: Many puzzles and a possible explanation,"
Journal of Public Economics,
Elsevier, vol. 93(7-8), pages 855-866, August.
- Roger Gordon & Wei Li, 2005. "Tax Structure in Developing Countries: Many Puzzles and a Possible Explanation," NBER Working Papers 11267, National Bureau of Economic Research, Inc.
- Andrés Mejía Acosta & Vicente Albornoz & María Caridad Araujo, 2006. "The Political Economy of the Budget Process: The Case of Ecuador," IDB Publications 31798, Inter-American Development Bank.
- María Lorena Marí del Cristo & Marta Gómez-Puig, 2013. "“Fiscal sustainability and fiscal shocks in a dollarized and oil-exporting country: Ecuador”," IREA Working Papers 201306, University of Barcelona, Research Institute of Applied Economics, revised Apr 2013.
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