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Financial mechanism to invest in knowledge from natural resource revenues: Experiences from Bolivia, Chile, Colombia and Peru

Author

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  • Iizuka, Michiko

    (UNU-MERIT, Maastricht University)

  • Vargas, Fernando

    (UNU-MERIT, Maastricht University)

  • Baumann, Jakob

Abstract

In resource-rich emerging countries, management of revenues from natural resources (NR) plays a critical role in transforming their economies. In this paper, a conceptual framework is constructed for an institution to promote the economic diversification through investing in knowledge, based on the literature from management of natural resources, industrial policy and public management. Existing financial mechanisms in Bolivia, Chile, Colombia and Peru, where NR revenues are invested in knowledge to enhance productivity (natural resources for knowledge, or NR4K funds), are examined applying the framework. The analysis identified that NR4K in these countries currently fall short of achieving their intended purpose of transitioning their economies toward increased diversification. These require complementary public policies to enhance capabilities, coordinate between stakeholders and initiate experimental investments.

Suggested Citation

  • Iizuka, Michiko & Vargas, Fernando & Baumann, Jakob, 2017. "Financial mechanism to invest in knowledge from natural resource revenues: Experiences from Bolivia, Chile, Colombia and Peru," MERIT Working Papers 2017-042, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2017042
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    File URL: https://unu-merit.nl/publications/wppdf/2017/wp2017-042.pdf
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    Cited by:

    1. Sergio Peláez, 2018. "Ciclo de recursos naturales y política fiscal bajo preferencias inconsistentes," Coyuntura Económica, Fedesarrollo, vol. 48(1-2), pages 13-78, December.

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    More about this item

    Keywords

    Natural resources; STI policy; Natural resource fund; NR4K; Latin America; Bolivia; Chile; Colombia; Peru;
    All these keywords.

    JEL classification:

    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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