Mineral-Rich Countries and Dutch Disease : Understanding the Macroeconomic Implications of Windfalls and the Development Prospects, The Case of Equatorial Guinea

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Toto Same, Achille
dc.date.accessioned
2012-05-31T15:35:33Z
dc.date.available
2012-05-31T15:35:33Z
dc.date.issued
2008-04
dc.date.lastModified
2017-12-14T05:42:31Z
dc.description.abstract
Referring to the original context of Dutch Disease, the term refers to the fears of de-industrialization that gripped the Netherlands as a result of the appreciation of the Dutch currency that followed the discovery of natural gas deposits. Expansion of petroleum exports in the 1960s not only crowded out other exports, it actually reduced other exports disproportionately and fueled the fears of dire consequences for Dutch manufacturing. In the case of Equatorial Guinea, the secondary sector represents about 2 percent of the gross domestic product, manufacturing represents less than 1 percent, and oil represents more than 95 percent. The negative impact of the Dutch Disease in this context would be limited given the structure of the economy and on the contrary may even be a good thing because it fuels the structural transformational process of the economy, which is needed in Equatorial Guinea. This paper argues that the ongoing Dutch Disease is a natural and necessary reallocation of resources in the economy of Equatorial Guinea. The magnitude of negative macroeconomic consequences of the Dutch Disease depends on the country's economic structure and stage of development. In a country where the manufacturing sector barely exists or where the non-oil primary sector is structurally deficient, as has been the case of Equatorial Guinea, there is little to fear about the disease. The oil boom is a blessing, given that oil revenues when properly managed can play a special and critical role in overall economic development and poverty reduction in low-income countries. To promote good governance in the management of the country's oil wealth, the government may wish to adhere to clear standards of accountability and transparency; especially by complying with the Extractive Industries Transparency Initiative (EITI++).
en
dc.identifier
http://documents.worldbank.org/curated/en/2008/04/9362493/mineral-rich-countries-dutch-disease-understanding-macroeconomic-implications-windfalls-development-prospects-the-case-equatorial-guinea
dc.identifier.uri
http://hdl.handle.net/10986/6747
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper No. 4595
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
ABSORPTIVE CAPACITY
dc.subject
ACCOUNTABILITY
dc.subject
ACCOUNTING
dc.subject
ADMINISTRATIVE FEES
dc.subject
ADVERSE CONSEQUENCE
dc.subject
ADVERSE CONSEQUENCES
dc.subject
ADVERSE IMPACT
dc.subject
AGRICULTURE
dc.subject
ANNUAL EXPENSES
dc.subject
APPROVAL PROCEDURE
dc.subject
ASSET MANAGEMENT
dc.subject
AUDITING
dc.subject
AUDITS
dc.subject
BANK ACCOUNTS
dc.subject
BANK OF CENTRAL AFRICAN STATES
dc.subject
BANK POLICY
dc.subject
BUDGET DEFICIT
dc.subject
CAPACITY BUILDING
dc.subject
CAPITAL EXPENDITURE
dc.subject
CAPITAL GOODS
dc.subject
CAPITAL GOODS INDUSTRIES
dc.subject
CAPITAL INVESTMENT
dc.subject
CAPITAL MARKETS
dc.subject
CASH MANAGEMENT
dc.subject
CENTRAL BANK
dc.subject
CENTRALIZATION
dc.subject
CHECKS
dc.subject
COMMERCIAL BANK
dc.subject
COMMERCIAL BANKS
dc.subject
COMMODITIES
dc.subject
COMPARATIVE ADVANTAGE
dc.subject
COMPETITIVENESS
dc.subject
COMPREHENSIVE DEVELOPMENT
dc.subject
CONTINGENCY
dc.subject
CONTRIBUTION
dc.subject
CREDITS
dc.subject
CURRENCY
dc.subject
CURRENT ACCOUNT
dc.subject
CURRENT ACCOUNT DEFICIT
dc.subject
CURRENT EXPENDITURES
dc.subject
DEBT
dc.subject
DEBT BURDENS
dc.subject
DEPOSIT
dc.subject
DEPOSITS
dc.subject
DEVALUATION
dc.subject
DEVELOPING COUNTRIES
dc.subject
DEVELOPMENT ECONOMICS
dc.subject
DEVELOPMENT STRATEGY
dc.subject
DOMESTIC CURRENCY
dc.subject
DOMESTIC ECONOMY
dc.subject
DOMESTIC INFLATION
dc.subject
DURABLE
dc.subject
DUTCH DISEASE
dc.subject
ECONOMETRIC EVIDENCE
dc.subject
ECONOMIC ACTIVITIES
dc.subject
ECONOMIC ACTIVITY
dc.subject
ECONOMIC DEVELOPMENT
dc.subject
ECONOMIC DEVELOPMENTS
dc.subject
ECONOMIC GROWTH
dc.subject
ECONOMIC MANAGEMENT
dc.subject
ECONOMIC OUTLOOK
dc.subject
ECONOMIC PERFORMANCE
dc.subject
ECONOMIC RESEARCH
dc.subject
ECONOMIC STRUCTURE
dc.subject
ECONOMICS RESEARCH
dc.subject
EMPLOYMENT
dc.subject
EXCHANGE RATE VOLATILITY
dc.subject
EXPENDITURE
dc.subject
EXPENDITURE RESTRAINT
dc.subject
EXPENDITURES
dc.subject
EXPORT EARNINGS
dc.subject
EXPORT REVENUES
dc.subject
EXPORTER
dc.subject
EXPORTERS
dc.subject
EXPORTS
dc.subject
FAVORABLE TERMS
dc.subject
FINANCIAL ASSETS
dc.subject
FINANCIAL STATEMENTS
dc.subject
FINANCIAL TRANSACTIONS
dc.subject
FISCAL BALANCE
dc.subject
FISCAL DISCIPLINE
dc.subject
FISCAL MANAGEMENT
dc.subject
FISCAL POLICY
dc.subject
FISCAL POSITION
dc.subject
FISCAL SURPLUS
dc.subject
FORECASTS
dc.subject
FOREIGN ASSETS
dc.subject
FOREIGN DIRECT INVESTMENT
dc.subject
FOREIGN EXCHANGE
dc.subject
FOREIGN EXCHANGE EARNING
dc.subject
FOREIGN EXCHANGE EARNINGS
dc.subject
FOREIGN INVESTMENT
dc.subject
FOREIGN RESERVES
dc.subject
FORMAL EDUCATION
dc.subject
GDP
dc.subject
GDP PER CAPITA
dc.subject
GLOBAL ECONOMY
dc.subject
GOVERNANCE ISSUES
dc.subject
GOVERNMENT ACCOUNTS
dc.subject
GOVERNMENT EXPENDITURE
dc.subject
GOVERNMENT REVENUE
dc.subject
GOVERNMENT REVENUES
dc.subject
GOVERNMENT SPENDING
dc.subject
GROSS DOMESTIC PRODUCT
dc.subject
GROSS REVENUES
dc.subject
HUMAN CAPITAL
dc.subject
HUMAN DEVELOPMENT
dc.subject
HUMAN RESOURCE
dc.subject
ILLITERACY
dc.subject
IMBALANCE
dc.subject
IMPORT
dc.subject
IMPORTS
dc.subject
INCOME
dc.subject
INCOME FLOWS
dc.subject
INCOME TAX
dc.subject
INCOMES
dc.subject
INDUSTRIALIZATION
dc.subject
INFLATION
dc.subject
INFLATION DIFFERENTIAL
dc.subject
INFRASTRUCTURE INVESTMENT
dc.subject
INSTRUMENT
dc.subject
INTERNATIONAL AUDITING STANDARDS
dc.subject
INTERNATIONAL BANK
dc.subject
INVESTING
dc.subject
INVESTMENT ACCOUNTS
dc.subject
INVESTMENT PROGRAM
dc.subject
INVESTMENT PROJECTS
dc.subject
LEGAL FRAMEWORK
dc.subject
LEVEL OF COMMITMENTS
dc.subject
LIQUIDITY
dc.subject
LOW-INCOME
dc.subject
LOW-INCOME COUNTRIES
dc.subject
MACROECONOMIC RISKS
dc.subject
MARKET PRICES
dc.subject
MOBILIZATION OF RESOURCES
dc.subject
MODEL CONTRACTS
dc.subject
MONETARY FUND
dc.subject
NATIONAL SAVINGS
dc.subject
NATURAL RESOURCE
dc.subject
NATURAL RESOURCES
dc.subject
OIL BOOM
dc.subject
OIL EXPORT
dc.subject
OIL EXPORTER
dc.subject
OIL EXPORTING COUNTRIES
dc.subject
OIL EXPORTS
dc.subject
OIL PRICE
dc.subject
OIL PRICES
dc.subject
OIL PRODUCING COUNTRIES
dc.subject
OIL RESOURCE
dc.subject
OIL RESOURCES
dc.subject
OIL REVENUE
dc.subject
OIL REVENUES
dc.subject
OIL-EXPORTING COUNTRIES
dc.subject
PAYMENT OBLIGATIONS
dc.subject
PAYMENT ORDER
dc.subject
POLITICAL ECONOMY
dc.subject
POLITICAL INSTABILITY
dc.subject
POLITICAL STABILITY
dc.subject
POOR GROWTH PERFORMANCE
dc.subject
POVERTY REDUCTION
dc.subject
PRIMARY COMMODITIES
dc.subject
PRIVATE CAPITAL
dc.subject
PRIVATE CONSUMPTION
dc.subject
PRIVATE HOUSING
dc.subject
PRIVATE INVESTMENT
dc.subject
PRODUCTION INPUTS
dc.subject
PRODUCTIVITY
dc.subject
PROFIT SHARING
dc.subject
PROFITABILITY
dc.subject
PUBLIC AGENCIES
dc.subject
PUBLIC ENTERPRISES
dc.subject
PUBLIC EXPENDITURE
dc.subject
PUBLIC FINANCE
dc.subject
PUBLIC FINANCE LAW
dc.subject
PUBLIC FINANCES
dc.subject
PUBLIC FUNDS
dc.subject
PUBLIC INVESTMENT
dc.subject
PUBLIC INVESTMENTS
dc.subject
PUBLIC SERVICES
dc.subject
REAL EFFECTIVE EXCHANGE RATE
dc.subject
REAL EXCHANGE RATE
dc.subject
REAL EXCHANGE RATE APPRECIATION
dc.subject
REAL GDP
dc.subject
REAL SECTOR
dc.subject
RECURRENT COST
dc.subject
RECURRENT EXPENDITURE
dc.subject
RENTS
dc.subject
RESERVE
dc.subject
RESERVE FUND
dc.subject
RESERVES
dc.subject
RESOURCE ALLOCATION
dc.subject
RESOURCE MOVEMENT EFFECT
dc.subject
RESPONSIBILITIES
dc.subject
RETURN
dc.subject
SALE
dc.subject
SALES
dc.subject
SAVINGS RATE
dc.subject
SECURITIES
dc.subject
SHAREHOLDER
dc.subject
SLOWDOWN
dc.subject
SOURCES OF INCOME
dc.subject
STATE ENTERPRISES
dc.subject
STATUTORY REQUIREMENT
dc.subject
STRUCTURAL ADJUSTMENT
dc.subject
SUPERVISORY BOARD
dc.subject
SURPLUSES
dc.subject
TAX
dc.subject
TAX OBLIGATION
dc.subject
TAX REVENUES
dc.subject
TECHNICAL ASSISTANCE
dc.subject
TOTAL EXPORTS
dc.subject
TOTAL REVENUE
dc.subject
TRADE SECTORS
dc.subject
TRADING
dc.subject
TRADING PARTNER
dc.subject
TRADING SYSTEM
dc.subject
TRANSPARENCY
dc.subject
TREASURY
dc.subject
TREASURY INVESTMENT
dc.subject
WEALTH
dc.subject
WORLD DEVELOPMENT INDICATOR
dc.subject
WORLD MARKET
dc.title
Mineral-Rich Countries and Dutch Disease : Understanding the Macroeconomic Implications of Windfalls and the Development Prospects, The Case of Equatorial Guinea
en
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.doctype
Publications & Research
okr.docurl
http://documents.worldbank.org/curated/en/2008/04/9362493/mineral-rich-countries-dutch-disease-understanding-macroeconomic-implications-windfalls-development-prospects-the-case-equatorial-guinea
okr.globalpractice
Macroeconomics and Fiscal Management
okr.globalpractice
Finance and Markets
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-4595
okr.identifier.externaldocumentum
000158349_20080416110842
okr.identifier.internaldocumentum
9362493
okr.identifier.report
WPS4595
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2008/04/16/000158349_20080416110842/Rendered/PDF/wps4595.pdf
en
okr.region.administrative
Africa
okr.region.country
Equatorial Guinea
okr.topic
Finance and Financial Sector Development :: Currencies and Exchange Rates
okr.topic
Economic Theory and Research
okr.topic
Banks and Banking Reform
okr.topic
Finance and Financial Sector Development :: Debt Markets
okr.topic
Macroeconomics and Economic Growth
okr.unit
Development Research Group (DECRG)
okr.volume
1 of 1

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