Sudden Influxes of Resource Wealth to the Economy : Avoiding 'Dutch Disease'

Sudden Influxes of Resource Wealth to the Economy : Avoiding 'Dutch Disease'

Dutch Disease is a condition in which a sudden increase of resource wealth from an extractive sector (such as oil, gas, coal, or mining) undermines other areas of the economy (such as agriculture, manufacturing, or tradeable services), shrinking th...

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Bibliographic Details
Main Author: Mendez Ramos, Fabian
Format: Brief
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
DUTCH DISEASE
EXCHANGE RATE
COMMODITY PRICES
NATURAL RESOURCE WEALTH
DEBT
Online Access:http://documents.worldbank.org/curated/en/518791586875176017/Sudden-Influxes-of-Resource-Wealth-to-the-Economy-Avoiding-Dutch-Disease
http://hdl.handle.net/10986/33614
id okr-10986-33614
recordtype oai_dc
spelling okr-10986-336142021-05-25T10:54:43Z Sudden Influxes of Resource Wealth to the Economy : Avoiding 'Dutch Disease' Mendez Ramos, Fabian DUTCH DISEASE EXCHANGE RATE COMMODITY PRICES NATURAL RESOURCE WEALTH DEBT Dutch Disease is a condition in which a sudden increase of resource wealth from an extractive sector (such as oil, gas, coal, or mining) undermines other areas of the economy (such as agriculture, manufacturing, or tradeable services), shrinking them while spurring an appreciation in the real exchange rate. Although this may have some positive effects in the short run, Dutch Disease episodes can potentially lead to sectoral concentration and lower economic growth in the long run. This policy brief takes a systematic look at this macroeconomic phenomenon, collects evidence for 83 countries from 1998 to 2017, and summarizes policies that aim to prevent or mitigate Dutch Disease and some of its effects. A long-term perspective to prevent excessive dependence on natural resources and promote broad-based growth should include improvements in institutional governance of natural resource wealth, development of the financial sector to provide risk management products, and diversification of the economy through selective taxes and provision of public goods. 2020-04-17T15:52:01Z 2020-04-17T15:52:01Z 2020-04 Brief http://documents.worldbank.org/curated/en/518791586875176017/Sudden-Influxes-of-Resource-Wealth-to-the-Economy-Avoiding-Dutch-Disease http://hdl.handle.net/10986/33614 English Research and Policy Briefs,no. 31; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Brief
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic DUTCH DISEASE
EXCHANGE RATE
COMMODITY PRICES
NATURAL RESOURCE WEALTH
DEBT
spellingShingle DUTCH DISEASE
EXCHANGE RATE
COMMODITY PRICES
NATURAL RESOURCE WEALTH
DEBT
Mendez Ramos, Fabian
Sudden Influxes of Resource Wealth to the Economy : Avoiding 'Dutch Disease'
relation Research and Policy Briefs,no. 31;
description Dutch Disease is a condition in which a sudden increase of resource wealth from an extractive sector (such as oil, gas, coal, or mining) undermines other areas of the economy (such as agriculture, manufacturing, or tradeable services), shrinking them while spurring an appreciation in the real exchange rate. Although this may have some positive effects in the short run, Dutch Disease episodes can potentially lead to sectoral concentration and lower economic growth in the long run. This policy brief takes a systematic look at this macroeconomic phenomenon, collects evidence for 83 countries from 1998 to 2017, and summarizes policies that aim to prevent or mitigate Dutch Disease and some of its effects. A long-term perspective to prevent excessive dependence on natural resources and promote broad-based growth should include improvements in institutional governance of natural resource wealth, development of the financial sector to provide risk management products, and diversification of the economy through selective taxes and provision of public goods.
format Brief
author Mendez Ramos, Fabian
author_facet Mendez Ramos, Fabian
author_sort Mendez Ramos, Fabian
title Sudden Influxes of Resource Wealth to the Economy : Avoiding 'Dutch Disease'
title_short Sudden Influxes of Resource Wealth to the Economy : Avoiding 'Dutch Disease'
title_full Sudden Influxes of Resource Wealth to the Economy : Avoiding 'Dutch Disease'
title_fullStr Sudden Influxes of Resource Wealth to the Economy : Avoiding 'Dutch Disease'
title_full_unstemmed Sudden Influxes of Resource Wealth to the Economy : Avoiding 'Dutch Disease'
title_sort sudden influxes of resource wealth to the economy : avoiding 'dutch disease'
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/518791586875176017/Sudden-Influxes-of-Resource-Wealth-to-the-Economy-Avoiding-Dutch-Disease
http://hdl.handle.net/10986/33614
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