Publication:
The Political Economy of Fiscal Policy and Economic Management in Oil Exporting Countries

Simple item page
dc.contributor.authorEifert, Benn
dc.contributor.authorGelb, Alan
dc.contributor.authorBorje Tallroth, Nils
dc.date.accessioned2014-08-01T19:54:25Z
dc.date.available2014-08-01T19:54:25Z
dc.date.issued2002-10
dc.description.abstractDespite massive oil rent incomes since the early 1970s, the economic performance of oil-exporting countries-with notable exceptions-is poor. While there is extensive literature on the management of oil resources, analysis of the underlying political determinants of this poor performance is more sparse. Drawing on concepts from the comparative institutionalist tradition in political science, the authors develop a generalized typology of political states that is used in analyzing the political economy of fiscal and economic management in oil-exporting countries with widely differing political systems. In assessing performance, the authors focus on issues of long-term savings, economic stabilization, and efficient use of oil rents. The comparisons of country experiences suggest that countries with strong, mature, democratic traditions have advantages in managing oil rents well because of their ability to reach consensus, their educated and informed electorates, and a high level of transparency that facilitates clear decisions on how to use rents over a long horizon. Yet even these systems, ensuring cautious use of oil income is a continuing struggle. Traditional and modernizing autocracies have also demonstrated their ability to sustain long decision horizons and implement developmental policies. But resistance to transparency and the danger of oil-led spending and expenditure commitments becoming the major legitimizing force behind the state may pose risk to the long-term sustainability of their current development strategies. In contrast, little positive effect can be expected from the politically unstable, predatory autocracies, which typically have very short policy horizons and sometimes the characteristics of "roving bandit" regimes. Factional democracies, with weak political parties and highly personalized politics, present particular challenges because they lack a sufficiently effective political system to create a consensus among strong competing interests. Special attention will be needed to increase transparency and raise public awareness in these countries. And oil rent makes it more difficult to sustain a constituency in favor of sound, longer-run economic management because it weakens incentives for agents to support checks and balances that impinge on their individual plans to appropriate the rents. The country comparisons further demonstrate that technical solutions-such as the establishment of oil stabilization funds and budgetary reforms-to enhance transparency and efficiency in the use of oil rents will not work well unless constituencies can be developed in support of such measures.en
dc.identifierhttp://documents.worldbank.org/curated/en/2002/10/2031707/political-economy-fiscal-policy-economic-management-oil-exporting-countries
dc.identifier.doi10.1596/1813-9450-2899
dc.identifier.urihttps://hdl.handle.net/10986/19225
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 2899
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectAGGREGATE DEMAND
dc.subjectAGRICULTURE
dc.subjectALTERNATIVE INVESTMENTS
dc.subjectAUTHORITY
dc.subjectBORROWING
dc.subjectBUDGET DEFICIT
dc.subjectBUDGET MANAGEMENT
dc.subjectBUDGET PROCESS
dc.subjectBUREAUCRACY
dc.subjectCASH PAYMENTS
dc.subjectCENTRAL GOVERNMENT
dc.subjectCITIZENS
dc.subjectCIVIL LIBERTIES
dc.subjectCOAL
dc.subjectCOAL GASIFICATION
dc.subjectCOMPARATIVE ANALYSIS
dc.subjectCOMPETITIVENESS
dc.subjectCOMPUTABLE GENERAL EQUILIBRIUM MODEL
dc.subjectCONSENSUS
dc.subjectCONSTITUENCIES
dc.subjectCONSTITUENCY
dc.subjectCONSTITUTION
dc.subjectCORRUPTION
dc.subjectCREDIT RATINGS
dc.subjectDEBT
dc.subjectDECENTRALIZATION PROCESS
dc.subjectDEFICITS
dc.subjectDEMOCRACY
dc.subjectDEMOCRATIC INSTITUTIONS
dc.subjectDEVELOPED COUNTRIES
dc.subjectDEVELOPMENT STRATEGIES
dc.subjectDISCOUNT RATES
dc.subjectDIVIDENDS
dc.subjectECONOMIC CONDITIONS
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC INCENTIVES
dc.subjectECONOMIC PERFORMANCE
dc.subjectECONOMISTS
dc.subjectEFFICIENT USE
dc.subjectEMPLOYMENT
dc.subjectENTITLEMENTS
dc.subjectEQUILIBRIUM
dc.subjectEXCHANGE RATE
dc.subjectEXPANSIONARY FISCAL
dc.subjectEXPENDITURE
dc.subjectEXPLOITATION
dc.subjectEXPORTS
dc.subjectFINANCIAL VIABILITY
dc.subjectFISCAL
dc.subjectFISCAL CRISES
dc.subjectFISCAL CRISIS
dc.subjectFISCAL DECENTRALIZATION
dc.subjectFISCAL DEFICITS
dc.subjectFISCAL DISCIPLINE
dc.subjectFISCAL POLICIES
dc.subjectFISCAL POLICY
dc.subjectFISCAL RESOURCES
dc.subjectFISHERIES
dc.subjectFORECASTS
dc.subjectFOREIGN LOANS
dc.subjectFUEL
dc.subjectFUEL PRICE
dc.subjectFUELS
dc.subjectFULL EMPLOYMENT
dc.subjectGDP
dc.subjectGDP PER CAPITA
dc.subjectGENERAL EQUILIBRIUM MODEL
dc.subjectGOVERNMENT BUDGET CONSTRAINTS
dc.subjectGOVERNMENT EXPENDITURES
dc.subjectGOVERNMENT REVENUE
dc.subjectGOVERNMENT SERVICES
dc.subjectGOVERNMENT SPENDING
dc.subjectGOVERNMENT'S BUDGET
dc.subjectHUMAN CAPITAL
dc.subjectINCOME
dc.subjectINCOME DISTRIBUTION
dc.subjectINFLATION
dc.subjectLABOR MARKETS
dc.subjectLACK OF CLARITY
dc.subjectLACK OF TRANSPARENCY
dc.subjectLEGITIMACY
dc.subjectLEGITIMIZATION
dc.subjectLIVING STANDARDS
dc.subjectLOCAL GOVERNMENTS
dc.subjectMARGINAL VALUE
dc.subjectMEMBERS OF PARLIAMENT
dc.subjectMONETARY POLICIES
dc.subjectMONETARY POLICY
dc.subjectMORAL HAZARD
dc.subjectNATIONAL CONSENSUS
dc.subjectNATIONAL GOVERNMENTS
dc.subjectNATIONAL INCOME
dc.subjectNATIONS
dc.subjectOIL
dc.subjectOIL EXPORTERS
dc.subjectOIL EXPORTING
dc.subjectOIL EXPORTING COUNTRIES
dc.subjectOIL EXPORTS
dc.subjectOIL INDUSTRY
dc.subjectOIL MARKETS
dc.subjectOIL PRICES
dc.subjectOIL PRODUCERS
dc.subjectOIL PRODUCING COUNTRIES
dc.subjectOIL RESERVES
dc.subjectOIL REVENUES
dc.subjectOPPOSITION PARTIES
dc.subjectPER CAPITA INCOME
dc.subjectPOLITICAL ECONOMY
dc.subjectPOLITICAL ELITES
dc.subjectPOLITICAL INSTITUTIONS
dc.subjectPOLITICAL POWER
dc.subjectPOLITICIANS
dc.subjectPOPULATION GROWTH
dc.subjectPOPULISM
dc.subjectPRICE INCREASES
dc.subjectPRIVATE SECTOR
dc.subjectPRODUCERS
dc.subjectPROPERTY RIGHTS
dc.subjectPROVEN RESERVES
dc.subjectPUBLIC DEBT
dc.subjectPUBLIC EMPLOYMENT
dc.subjectPUBLIC EXPENDITURES
dc.subjectPUBLIC FINANCE
dc.subjectPUBLIC INVESTMENT
dc.subjectPUBLIC OFFICIALS
dc.subjectPUBLIC RESOURCES
dc.subjectPUBLIC REVENUES
dc.subjectPUBLIC SECTOR
dc.subjectPUBLIC SECTOR DEFICIT
dc.subjectPUBLIC SECTOR WAGES
dc.subjectPUBLIC SPENDING
dc.subjectPUBLIC WELFARE
dc.subjectRENT- SEEKING BEHAVIOR
dc.subjectRENT-SEEKING BEHAVIOR
dc.subjectREPRESENTATIVES
dc.subjectREVENUE MANAGEMENT
dc.subjectREVENUE SOURCES
dc.subjectREVENUE VOLATILITY
dc.subjectROADS
dc.subjectSAVINGS
dc.subjectSOCIAL PROGRAMS
dc.subjectSTAGFLATION
dc.subjectSTATE ENTERPRISES
dc.subjectSTATE INSTITUTIONS
dc.subjectSTATE POWER
dc.subjectSTREAMS
dc.subjectSTRUCTURAL ADJUSTMENT
dc.subjectTAX
dc.subjectTAX ADMINISTRATION
dc.subjectTAX BURDEN
dc.subjectTAX REVENUES
dc.subjectTAXATION
dc.subjectTRANSPARENCY
dc.subjectURBAN POPULATION
dc.subjectVOTERS
dc.subjectWAGES
dc.subjectWEALTH
dc.subjectWORLD DEMAND
dc.titleThe Political Economy of Fiscal Policy and Economic Management in Oil Exporting Countriesen
dspace.entity.typePublication
okr.crossref.titleThe Political Economy of Fiscal Policy and Economic Management in Oil-Exporting Countries
okr.date.disclosure2002-10-31
okr.date.doiregistration2025-04-10T09:18:58.575261Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2002/10/2031707/political-economy-fiscal-policy-economic-management-oil-exporting-countries
okr.globalpracticeGovernance
okr.globalpracticeEnergy and Extractives
okr.guid247121468766485195
okr.identifier.doi10.1596/1813-9450-2899
okr.identifier.externaldocumentum000094946_0210180511040
okr.identifier.internaldocumentum2031707
okr.identifier.reportWPS2899
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2002/11/01/000094946_0210180511040/Rendered/PDF/multi0page.pdfen
okr.region.administrativeAfrica
okr.sectorEnergy and mining :: Oil and gas
okr.topicEconomic Theory and Research
okr.topicEnergy::Energy and Environment
okr.topicEnvironmental Economics and Policies
okr.topicPublic Sector Development::Decentralization
okr.topicPayment Systems and Infrastructure
okr.topicGovernance::National Governance
okr.topicPublic Sector Economics and Finance
okr.unitOffice of the Chief Economist, Africa Region
okr.volume1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
multi0page.pdf
Size:
2.51 MB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
multi0page.txt
Size:
110.48 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Policy Research Working Papers