Recognizing that resource-rich developing countries (RRDCs) have distinct characteristics that make advice based on traditional consumption/savings/investment frameworks inadequate, the paper develops a new macrofiscal framework and policy analysis tools for RRDCs. Five key innovations are presented: 1) A fiscal sustainability framework that accounts for the growth- and revenue enhancing impact of public investment; 2) A sustainable investment tool for RRDCs to analyze the fiscal and macroeconomic implications of saving/investment scaling up scenarios; 3) A set of proposed fiscal indicators for RRDC staff reports to measure the savings from and use (consumption or investment) of resource flows; 4) A new toolkit for designing fiscal rules that smooth revenue volatility and assess long-term fiscal sustainability; and 5) A framework that generates current account benchmarks for external sustainability analysis in RRDCs.

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International Monetary Fund