Raising and Sharing Revenues from Natural Resources : A Review of Country Practices
Natural resources offer opportunities, but also bring challenges. They have generally been linked to a series of negative outcomes like economic decline, corruption, and conflict. Oil and minerals reserves, in particular, are often very spatially c...
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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2015/08/24919978/raising-sharing-revenues-natural-resources-review-country-practices http://hdl.handle.net/10986/22478 |
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okr-10986-22478 |
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oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
SURCHARGES EFFICIENCY LOSSES SUB-NATIONAL GOVERNMENTS REVENUE SHARING DURABLE GOODS INTERGENERATIONAL EQUITY RENEWABLE RESOURCES ENVIRONMENTAL DAMAGES SAL CITY PUBLIC ECONOMICS CENTRAL GOVERNMENT SPENDING PRODUCERS RESOURCE MANAGEMENT PROPERTY RIGHTS LOCAL GOVERNMENTS FINANCIAL RESOURCES CURRENT EXPENDITURES TIMBER TAX BASES EMISSIONS POLITICAL ECONOMY REVENUES ENVIRONMENTAL ISSUES POLITICAL DECENTRALIZATION REVENUE MANAGEMENT FISCAL POLICY INCENTIVES PROVINCES PUBLIC BUDGETS TAX FEDERAL SYSTEMS EXPLOITATION ACTIVITIES TAXABLE INCOME CONDITIONALITY SECTOR MINISTRY DEVELOPED COUNTRIES MUNICIPALITIES TOXIC SUBSTANCES SUBNATIONAL ECONOMIC ACTIVITY PRESENT VALUE REVENUE VOLATILITY INTERMEDIATION MINISTRY EXPLOITATION OIL PRICES FEDERAL COUNTRIES OIL INTERGOVERNMENTAL RELATIONS PUBLIC FINANCE MANAGEMENT DISTRICT PROVINCIAL GOVERNMENT TAX LIABILITIES OPTIONS EXTERNALITIES MINISTRY OF ENERGY TRANSFERS OPEC CENTRALIZATION DEBT TAX BASE PUBLIC FINANCE CENTRAL GOVERNMENTS FORESTRY EXPENDITURE CUTS SUBNATIONAL GOVERNMENT TAX REVENUES DIVIDENDS PRICE SUBSIDIES NATURAL RESOURCES SUBSIDIES EFFICIENCY INFRASTRUCTURE TAXES ENTITLEMENTS CAPITAL CONSTRAINTS EXPENDITURE RESOURCES SUB-NATIONAL NET REVENUES TAX INSTRUMENTS EQUITY POTENTIAL INVESTORS TAX CREDIT ECONOMIC IMPACT TAX RATE ENVIRONMENTAL POLICY FISCAL FRAMEWORK PUBLIC EXPENDITURE DISTRICT ASSEMBLIES MARKET PRICES PROVINCE POLICY MAKERS CREDIT CENTRAL GOVERNMENT MINES LEVEL OF GOVERNMENT EXPENDITURES PUBLIC GOVERNANCE PROPERTY TAX RATES SUBNATIONAL UNITS BLOCK GRANTS OPPORTUNITY COSTS FEDERAL SYSTEM OF GOVERNMENT TAX LIABILITY ENVIRONMENT TAX SHARING ECONOMICS TAX REVENUE DISCOUNT RATES ELECTRICITY PRICES TAXATION ECONOMIC DEVELOPMENT TRADE TAX PURPOSES LAND MUNICIPALITY MINISTRY OF FINANCE FISCAL MANAGEMENT CONSTITUTIONAL MANDATE POVERTY TAX REVENUE SHARING COAL SUBNATIONAL GOVERNMENTS SUSTAINABLE EXPLOITATION MACROECONOMIC IMPACT TAXPAYERS TAX ADMINISTRATION FEDERALISM DECENTRALIZATION REVENUE POLICY OBJECTIVES TAX TREATMENT COMMUNITY POLICY FORMULATION ENVIRONMENTAL POLICY INSTRUMENTS PROFITS PUBLIC GOOD FISCAL DECENTRALIZATION DISTRICTS PRICES OIL SECTOR PRODUCTION COSTS ECONOMIES REVENUE FLUCTUATIONS PUBLIC GOODS |
| spellingShingle |
SURCHARGES EFFICIENCY LOSSES SUB-NATIONAL GOVERNMENTS REVENUE SHARING DURABLE GOODS INTERGENERATIONAL EQUITY RENEWABLE RESOURCES ENVIRONMENTAL DAMAGES SAL CITY PUBLIC ECONOMICS CENTRAL GOVERNMENT SPENDING PRODUCERS RESOURCE MANAGEMENT PROPERTY RIGHTS LOCAL GOVERNMENTS FINANCIAL RESOURCES CURRENT EXPENDITURES TIMBER TAX BASES EMISSIONS POLITICAL ECONOMY REVENUES ENVIRONMENTAL ISSUES POLITICAL DECENTRALIZATION REVENUE MANAGEMENT FISCAL POLICY INCENTIVES PROVINCES PUBLIC BUDGETS TAX FEDERAL SYSTEMS EXPLOITATION ACTIVITIES TAXABLE INCOME CONDITIONALITY SECTOR MINISTRY DEVELOPED COUNTRIES MUNICIPALITIES TOXIC SUBSTANCES SUBNATIONAL ECONOMIC ACTIVITY PRESENT VALUE REVENUE VOLATILITY INTERMEDIATION MINISTRY EXPLOITATION OIL PRICES FEDERAL COUNTRIES OIL INTERGOVERNMENTAL RELATIONS PUBLIC FINANCE MANAGEMENT DISTRICT PROVINCIAL GOVERNMENT TAX LIABILITIES OPTIONS EXTERNALITIES MINISTRY OF ENERGY TRANSFERS OPEC CENTRALIZATION DEBT TAX BASE PUBLIC FINANCE CENTRAL GOVERNMENTS FORESTRY EXPENDITURE CUTS SUBNATIONAL GOVERNMENT TAX REVENUES DIVIDENDS PRICE SUBSIDIES NATURAL RESOURCES SUBSIDIES EFFICIENCY INFRASTRUCTURE TAXES ENTITLEMENTS CAPITAL CONSTRAINTS EXPENDITURE RESOURCES SUB-NATIONAL NET REVENUES TAX INSTRUMENTS EQUITY POTENTIAL INVESTORS TAX CREDIT ECONOMIC IMPACT TAX RATE ENVIRONMENTAL POLICY FISCAL FRAMEWORK PUBLIC EXPENDITURE DISTRICT ASSEMBLIES MARKET PRICES PROVINCE POLICY MAKERS CREDIT CENTRAL GOVERNMENT MINES LEVEL OF GOVERNMENT EXPENDITURES PUBLIC GOVERNANCE PROPERTY TAX RATES SUBNATIONAL UNITS BLOCK GRANTS OPPORTUNITY COSTS FEDERAL SYSTEM OF GOVERNMENT TAX LIABILITY ENVIRONMENT TAX SHARING ECONOMICS TAX REVENUE DISCOUNT RATES ELECTRICITY PRICES TAXATION ECONOMIC DEVELOPMENT TRADE TAX PURPOSES LAND MUNICIPALITY MINISTRY OF FINANCE FISCAL MANAGEMENT CONSTITUTIONAL MANDATE POVERTY TAX REVENUE SHARING COAL SUBNATIONAL GOVERNMENTS SUSTAINABLE EXPLOITATION MACROECONOMIC IMPACT TAXPAYERS TAX ADMINISTRATION FEDERALISM DECENTRALIZATION REVENUE POLICY OBJECTIVES TAX TREATMENT COMMUNITY POLICY FORMULATION ENVIRONMENTAL POLICY INSTRUMENTS PROFITS PUBLIC GOOD FISCAL DECENTRALIZATION DISTRICTS PRICES OIL SECTOR PRODUCTION COSTS ECONOMIES REVENUE FLUCTUATIONS PUBLIC GOODS Brosio, Giorgio Singh, Raju Jan Raising and Sharing Revenues from Natural Resources : A Review of Country Practices |
| relation |
MFM Global Practice discussion paper,no. 5; |
| description |
Natural resources offer opportunities,
but also bring challenges. They have generally been linked
to a series of negative outcomes like economic decline,
corruption, and conflict. Oil and minerals reserves, in
particular, are often very spatially concentrated, and their
discovery becomes a potential source of conflict between the
governments, the people of the producing areas, and those of
the rest of the country. But can this increased risk of
conflict be prevented? Are there ways for the government to
change this course of events? This paper tries to contribute
to this discussion by looking at the international practices
in raising and sharing natural resource revenues (NRR) among
different levels of government. The study observes that
sharing NRR with subnational governments of the producing
areas is the prevailing practice worldwide. There is a
rationale to compensate the subnational government of the
producing areas for the negative environmental, social, and
economic impact of production activities. Assignment to all
- including the non-producing - subnational governments is
less frequent, although it is increasingly used
(particularly in Latin America). This option increases the
number of stakeholders and gives them incentives to exert
control. This is a relevant argument, particularly in
countries with a weak capacity of public scrutiny of
government activities. The volatility of revenue or the low
absorption capacity of small government units may
nevertheless create problems. Similarly, the allocation of
NRR to individuals with direct transfers, a complement to
the intergovernmental allocation rather than an alternative,
can increase the welfare of citizens by increasing their
scrutiny of NRR use by government. |
| format |
Working Paper |
| author |
Brosio, Giorgio Singh, Raju Jan |
| author_facet |
Brosio, Giorgio Singh, Raju Jan |
| author_sort |
Brosio, Giorgio |
| title |
Raising and Sharing Revenues from Natural Resources : A Review of Country Practices |
| title_short |
Raising and Sharing Revenues from Natural Resources : A Review of Country Practices |
| title_full |
Raising and Sharing Revenues from Natural Resources : A Review of Country Practices |
| title_fullStr |
Raising and Sharing Revenues from Natural Resources : A Review of Country Practices |
| title_full_unstemmed |
Raising and Sharing Revenues from Natural Resources : A Review of Country Practices |
| title_sort |
raising and sharing revenues from natural resources : a review of country practices |
| publisher |
World Bank, Washington, DC |
| publishDate |
2015 |
| url |
http://documents.worldbank.org/curated/en/2015/08/24919978/raising-sharing-revenues-natural-resources-review-country-practices http://hdl.handle.net/10986/22478 |
| _version_ |
1764451225672089600 |
| spelling |
okr-10986-224782021-04-23T14:04:09Z Raising and Sharing Revenues from Natural Resources : A Review of Country Practices Brosio, Giorgio Singh, Raju Jan SURCHARGES EFFICIENCY LOSSES SUB-NATIONAL GOVERNMENTS REVENUE SHARING DURABLE GOODS INTERGENERATIONAL EQUITY RENEWABLE RESOURCES ENVIRONMENTAL DAMAGES SAL CITY PUBLIC ECONOMICS CENTRAL GOVERNMENT SPENDING PRODUCERS RESOURCE MANAGEMENT PROPERTY RIGHTS LOCAL GOVERNMENTS FINANCIAL RESOURCES CURRENT EXPENDITURES TIMBER TAX BASES EMISSIONS POLITICAL ECONOMY REVENUES ENVIRONMENTAL ISSUES POLITICAL DECENTRALIZATION REVENUE MANAGEMENT FISCAL POLICY INCENTIVES PROVINCES PUBLIC BUDGETS TAX FEDERAL SYSTEMS EXPLOITATION ACTIVITIES TAXABLE INCOME CONDITIONALITY SECTOR MINISTRY DEVELOPED COUNTRIES MUNICIPALITIES TOXIC SUBSTANCES SUBNATIONAL ECONOMIC ACTIVITY PRESENT VALUE REVENUE VOLATILITY INTERMEDIATION MINISTRY EXPLOITATION OIL PRICES FEDERAL COUNTRIES OIL INTERGOVERNMENTAL RELATIONS PUBLIC FINANCE MANAGEMENT DISTRICT PROVINCIAL GOVERNMENT TAX LIABILITIES OPTIONS EXTERNALITIES MINISTRY OF ENERGY TRANSFERS OPEC CENTRALIZATION DEBT TAX BASE PUBLIC FINANCE CENTRAL GOVERNMENTS FORESTRY EXPENDITURE CUTS SUBNATIONAL GOVERNMENT TAX REVENUES DIVIDENDS PRICE SUBSIDIES NATURAL RESOURCES SUBSIDIES EFFICIENCY INFRASTRUCTURE TAXES ENTITLEMENTS CAPITAL CONSTRAINTS EXPENDITURE RESOURCES SUB-NATIONAL NET REVENUES TAX INSTRUMENTS EQUITY POTENTIAL INVESTORS TAX CREDIT ECONOMIC IMPACT TAX RATE ENVIRONMENTAL POLICY FISCAL FRAMEWORK PUBLIC EXPENDITURE DISTRICT ASSEMBLIES MARKET PRICES PROVINCE POLICY MAKERS CREDIT CENTRAL GOVERNMENT MINES LEVEL OF GOVERNMENT EXPENDITURES PUBLIC GOVERNANCE PROPERTY TAX RATES SUBNATIONAL UNITS BLOCK GRANTS OPPORTUNITY COSTS FEDERAL SYSTEM OF GOVERNMENT TAX LIABILITY ENVIRONMENT TAX SHARING ECONOMICS TAX REVENUE DISCOUNT RATES ELECTRICITY PRICES TAXATION ECONOMIC DEVELOPMENT TRADE TAX PURPOSES LAND MUNICIPALITY MINISTRY OF FINANCE FISCAL MANAGEMENT CONSTITUTIONAL MANDATE POVERTY TAX REVENUE SHARING COAL SUBNATIONAL GOVERNMENTS SUSTAINABLE EXPLOITATION MACROECONOMIC IMPACT TAXPAYERS TAX ADMINISTRATION FEDERALISM DECENTRALIZATION REVENUE POLICY OBJECTIVES TAX TREATMENT COMMUNITY POLICY FORMULATION ENVIRONMENTAL POLICY INSTRUMENTS PROFITS PUBLIC GOOD FISCAL DECENTRALIZATION DISTRICTS PRICES OIL SECTOR PRODUCTION COSTS ECONOMIES REVENUE FLUCTUATIONS PUBLIC GOODS Natural resources offer opportunities, but also bring challenges. They have generally been linked to a series of negative outcomes like economic decline, corruption, and conflict. Oil and minerals reserves, in particular, are often very spatially concentrated, and their discovery becomes a potential source of conflict between the governments, the people of the producing areas, and those of the rest of the country. But can this increased risk of conflict be prevented? Are there ways for the government to change this course of events? This paper tries to contribute to this discussion by looking at the international practices in raising and sharing natural resource revenues (NRR) among different levels of government. The study observes that sharing NRR with subnational governments of the producing areas is the prevailing practice worldwide. There is a rationale to compensate the subnational government of the producing areas for the negative environmental, social, and economic impact of production activities. Assignment to all - including the non-producing - subnational governments is less frequent, although it is increasingly used (particularly in Latin America). This option increases the number of stakeholders and gives them incentives to exert control. This is a relevant argument, particularly in countries with a weak capacity of public scrutiny of government activities. The volatility of revenue or the low absorption capacity of small government units may nevertheless create problems. Similarly, the allocation of NRR to individuals with direct transfers, a complement to the intergovernmental allocation rather than an alternative, can increase the welfare of citizens by increasing their scrutiny of NRR use by government. 2015-08-18T18:41:33Z 2015-08-18T18:41:33Z 2015-08 Working Paper http://documents.worldbank.org/curated/en/2015/08/24919978/raising-sharing-revenues-natural-resources-review-country-practices http://hdl.handle.net/10986/22478 English en_US MFM Global Practice discussion paper,no. 5; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper |