How to use oil revenues efficiently
Author
Source
Economic Research Forum : Working Paper Series
Issue
Vol. 2018, Issue 1172-1274 (31 Dec. 2018), pp.0-21, 22 p.
Publisher
Economic Research Forum for the Arab Countries Iran and Turkey
Publication Date
2018-12-31
Country of Publication
Egypt
No. of Pages
22
Main Subjects
Topics
Abstract EN
Oil-rich countries systematically misallocate public expenditures relative to non-oil countries--by favoring consumption over capital, and within consumption, inefficient subsidies and public-sector wages over targeted transfers.
Furthermore, for given levels of expenditure, value-for-money is considerably less in oil-rich countries.
This paper argues that the reason for this inefficiency is that oil revenues go directly to the government without passing through the hands of the citizens, as is the case with tax revenues.
As a result, governments in oil countries are less accountable for public expenditure, which leads to inefficient spending.
To improve public-spending efficiency, we propose that all oil revenues be distributed directly to citizens, and the resources that government needs be raised through taxation.
We show that such a scheme improves the efficiency of public spending.
We consider possible obstacles to such a reform and show that they have been overcome by technology, politics, and global events.
American Psychological Association (APA)
Devarajan, Shantayanan. 2018. How to use oil revenues efficiently. Economic Research Forum : Working Paper Series،Vol. 2018, no. 1172-1274, pp.0-21.
https://search.emarefa.net/detail/BIM-836460
Modern Language Association (MLA)
Devarajan, Shantayanan. How to use oil revenues efficiently. Economic Research Forum : Working Paper Series No. 1172-1274 (Dec. 2018), pp.0-21.
https://search.emarefa.net/detail/BIM-836460
American Medical Association (AMA)
Devarajan, Shantayanan. How to use oil revenues efficiently. Economic Research Forum : Working Paper Series. 2018. Vol. 2018, no. 1172-1274, pp.0-21.
https://search.emarefa.net/detail/BIM-836460
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 19-21
Record ID
BIM-836460