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Fiscal indicators for resource-rich and resource-poor low- and middle-income countries are compared using annual data from 1996 to 2012. Resource richness is defined by export composition: fuel greater than a 25 percent share and/or ores and metals greater than a 10 percent share. Fuel exporters have a significantly better general government fiscal balance than the rest of the sample, and higher revenues and expenditures, which are approximately evenly split between extra consumption expenditure and extra capital expenditure. Only about a quarter of their extra revenue goes into extra consumption expenditure, and this proportion has been lower since 2005. Fuel exporters' expenditure reacts with a lag to oil price fluctuations. There are no significant differences between ores and metals exporters and resource-poor countries, or between new and old resource exporters, in aggregate expenditures and revenues. Ores and metals exporters spend more on investment and less on government consumption. Some individual country cases are briefly discussed.

Currencies and Exchange Rates --- Debt Markets --- Economic Theory & Research --- Emerging Markets --- Finance and Financial Sector Development --- Fiscal Balance --- Fuel --- Government Expenditure --- Government Revenue --- Macroeconomics and Economic Growth --- Markets & Market Access --- Metals --- Natural Resources --- Oil --- Ores --- Private Sector Development

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This paper analyses the evolution of fiscal and monetary variables in Ghana, from the discovery of oil in 2007 through to 2014. It documents the deterioration of fiscal and monetary discipline over this period, which resulted in a rebound of debt, a deterioration of the external balance, and a decrease in public investment. The paper goes on to analyse the potential causes of this deterioration, including the political economy context, and the fiscal and monetary institutional framework. The suggested causes include the politics of Ghana's dominant two-party system. Finally, the paper discusses what Ghana could have done differently to avoid the various damaging effects associated with the oil discovery. It does not aim to provide specific fiscal policy recommendations for Ghana, but rather to give an empirical account of Ghana's experience that may be useful for other countries that discover oil.

Fiscal Consolidation --- Macroeconomic Policy --- Oil

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Sovereign wealth funds represent a large and growing pool of savings. An increasing number of these funds are owned by natural resource-exporting countries and have a variety of objectives, including intergenerational equity and macroeconomic stabilization. Traditionally, these funds have invested in external assets, especially securities traded in major markets. But the persistent infrastructure financing gap in developing countries has motivated some governments to encourage their sovereign wealth funds to invest domestically. This paper proposes some basic elements of a conceptual framework to create a system of checks and balances to help ensure that the sovereign wealth funds do not undermine macroeconomic management or become a vehicle for politically driven "investments." First, the risks and opportunities of domestic investment by sovereign wealth funds are analyzed. Central issues are the relationship of sovereign wealth fund financing to the budget process and to the procurement systems of sector ministries, as well as the establishment of appropriate benchmarks and safeguards to ensure the integrity of investment decisions. The paper argues that a well-governed sovereign wealth fund, with a sound mandate and professional management and staffing, can possibly improve the quality of the public investment program. But its mandate should not duplicate that of other government institutions with investment mandates, such as the budget, the national development bank, the investment authority, and state-owned enterprises. Establishing rules on the type of investment (for example, commercial and/or quasi-commercial) and its modalities (for example, no controlling stakes, leveraging private investment) is one way to ensure separation between the activities of the sovereign wealth fund and those of other institutions. The critical issue remains that of limiting the sovereign wealth fund's investment scope to that appropriate for a wealth fund. If investments that generate quasi-market returns are permitted, the size of the home bias should be clearly stipulated and these investments should be reported separately.

Access to Finance --- Capital Stock --- Debt Markets --- Domestic Investment --- Emerging Markets --- Finance and Financial Sector Development --- Fiscal Policy --- Infrastructure Investment --- Intergenerational Equity --- Investment & Investment Climate --- Macroeconomic Policy --- Macroeconomics and Economic Growth --- Non Bank Financial Institutions --- Private Sector Development --- Project Evaluation --- Public Finance --- Public Investment --- Public Private Partnerships --- Sovereign Wealth Fund --- SWF --- Wealth Management

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Depuis quelques dizaines d'annees, les pays en developpement riches en ressources naturelles utilisent ces dernieres en tant que garanties pour obtenir acces a des sources de financement pour leurs investissements et contourner les obstacles qu'ils rencontrent lorsqu'ils s'efforcent d'obtenir des prets traditionnels aupres des banques ou des capitaux sur les marches financiers. Differents modeles de financement sont issus de ces efforts, parmi lesquels le modele des infrastructures financees par des ressources naturelles (IFR) qui est une variante des modeles de prets garantis par le petrole lances en Afrique par plusieurs banques occidentales. Dans le cadre d'une transaction basee sur le modele des infrastructures financees par des ressources naturelles (IFR), un pret contracte pour financer la construction immediate d'une infrastructure est garanti par la valeur actuelle nette de flux de revenus qui seront generes a l'avenir par l'extraction d'hydrocarbures ou de minerais. Le modele a ete employe dans plusieurs pays africains pour des contrats d'une valeur totale de l'ordre de 30 milliards de dollars, selon des informations publiques. Ce rapport, qui se compose d'une etude preparee par Hunton and Williams LLP, specialiste du financement de projets a l'echelle mondiale, et de commentaires formules par six economistes et decideurs de reputation internationale presente une analyse des marches d'infrastructures financees par des ressources naturelles (IFR) sous l'angle du financement de projets. Il a pour objet de provoquer une reflexion de fond et de servir de base a de nouveaux travaux de recherche sur le role du modele IFR, les risques qu'il pose et les perspectives qu'il offre, sans pour autant pretendre presenter des opinons des contrats IFR qui auraient l'aval de la Banque mondiale. Il est le fruit d'un effort motive par la conviction que, si les pays doivent continuer de solliciter des transactions IFR ou de recevoir des propositions spontanees, il incombe aux representants de l'Etat de pouvoir faire la difference entre de bonnes et de mauvaises operations, d'evaluer les compromis qui sont inevitables, et d'agir en consequence. Ce rapport vise a apporter certains eclairages qui permettront de determiner comment assujettir, dans le cadre de la politique publique, les transactions IFR au meme degre d'examen que tout autre instrument que les autorites de pays a faible revenu ou a revenu intermediaire (tranche inferieure) pourraient souhaiter utiliser pour mobiliser des financements a l'appui du developpement.

French Translation --- Industries Extractives --- Infrastructures --- Petroleum Finance --- Resource-Backed Finance --- Resources for Infrastructure

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