Oil Revenue Assignments: Country Experiences and Issues
AbstractBased on country experiences, the paper assesses policy options to assign oil revenues to subnational governments (SNGs). The literature recommends that oil revenues be centralized. Given political economy considerations, this paper suggests that a possible alternative is to assign stable oil-tax bases to oil-producing SNGs, supplementing these with predictable transfers from the center. Although commonly used, oil revenue-sharing arrangements are the least preferable solution, as they complicate macroeconomic management and do not provide stable financing. Revenue sharing also does not diffuse separatist tendencies, since oil-producing SNGs would still be better off by keeping their oil revenues in full.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 02/203.
Date of creation: 01 Nov 2002
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- Ehtisham Ahmad & Ali M. Mansoor, 2002. "Indonesia: Managing Decentralization," IMF Working Papers 02/136, International Monetary Fund.
- Hjort, Jonas, 2006. "Citizen funds and Dutch Disease in developing countries," Resources Policy, Elsevier, vol. 31(3), pages 183-191, September.
- Atsushi Iimi, 2006. "Did Botswana Escape from the Resource Curse?," IMF Working Papers 06/138, International Monetary Fund.
- Grant Bishop & Anwar Shah, 2008. "Fiscal Federalism and Petroleum Resources in Iraq," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0826, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
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