Ideas to Action:

Independent research for global prosperity

Tag: Oil

 

Can the Venezuelan Opposition Create Citizen-Owners to Unseat the Chavistas?

This is a joint post with Stephanie Majerowicz. Venezuelan President Hugo Chavez hasn’t appeared in public since his cancer surgery last December and, given his sharply deteriorating health, it seems a safe bet that the country will be having another national election sooner rather than later. When that happens, the opposition will have a rare opportunity outflank the populist Chavistas and offer voters a share in the country’s oil wealth through direct payments of part of the revenue (see the recent WSJ article). Such a program has the twin advantages of being potentially hugely popular and of reducing corruption, strengthening accountability and curbing waste. Here at CGD we call this idea “oil-to-cash.”

India Leading the Way on Biometric ID—and Now Replacing Subsidies with Cash

The Washington Post reported yesterday that India will, starting Jan 1st in 51 districts, pay cash directly into the accounts of poor families as it begins unraveling its convoluted web of food, fuel and other subsidies. India’s been toying with this idea for a while, so it’s good news that it’ll finally kick-off in the New Year. Many others will be watching.

Dodd-Frank, the EU, and the Resource Curse

British Prime Minister David Cameron’s op-ed  in the Wall Street Journal lays out his anti-poverty vision. As my colleague Todd Moss notes, this type of serious, top-down and bottom-up debate about development issues doesn’t make the US look especially good by comparison.

Oil 2 Cash in Iraq -- Johnny West

Johnny West is a man of many talents. An expert on oil, civil society, and governance in the Middle East who works as an advisor to the UNDP, he is fluent in Arabic, spent more than two decades in the Middle East as a journalist for Reuters, and has just published a highly readable book recounting his journey through the Arab Spring.

You’ve Heard of Herman Cain’s 9-9-9. Here’s Nigeria’s 20-20-20 (And This One Might Fly)

Lately I’ve been thinking Nigeria should be a little bit more like, of all places, Iran. Yes, Iran. And maybe Alaska.  Here’s how.

Africa’s most populous nation has been a massive underperformer since independence. It’s earned hundreds of billions of dollars from petroleum exports, but the average Nigerian has little to show for it. At least three decades were lost; average incomes in the mid-2000s were the same as in the mid-1970s. More recently, the economic data has been brighter. And there is always hope that the country has finally turned a corner.

Implementing Oil-to-Cash – Todd Moss

When a poor country finds oil, bad things often get worse. Countries rich in extractable natural resources, especially oil, frequently suffer from crummy governance, high poverty, endemic corruption and conflict. Is it possible to beat this oil curse? My guest on the Wonkcast this week, Todd Moss, CGD vice president for programs and senior fellow, says yes. He argues that a government that transfers some or all of its oil revenue to citizens in a universal, transparent, and regular taxable payment, could strengthen the social contract, fight corruption, and lay the foundation for future prosperity.

Nigerians Demand Cheap Gas, But Fuel Subsidies Are NOT Pro-Poor

This is a joint post with Stephanie Majerowicz.

Last Sunday the government of Nigeria scrapped fuel subsidies, leading to an immediate doubling of petrol prices. This set off violent protests across the country, threats of strikes by trade unions, and was even lamented by western pundits as a sign of government indifference to the poor. Economists of course view the move as a valiant step toward fixing a deeply dysfunctional budget system. Fuel subsidies were (directly and indirectly) draining the treasury, at a cost of up to US$8bn per year, equivalent to over 25% of the federal budget.

The rub will be if the government can make the case that there’s a better way to spend its resources than through fuel subsidies. Nigerian protesters could be forgiven for being skeptical. Many see cheap gas as the only tangible benefit from their country’s vast oil wealth.

Libya: Can Oil and Democracy Mix?

Libya’s oil puts at risk its hopes of becoming a democracy.  If easy oil money is captured by a few people, and they then control politics, Libya will end up  looking more like Angola and less like Norway. 

Implications of Ghana’s New Middle-Income Status – Todd Moss

Ghana’s recent recalculation of its GDP led to an overnight $500 per capita jump, putting in motion unexpectedly rapid graduation from the International Development Association (IDA) and ultimately a new relationship with the World Bank. In this week’s Wonkcast, I speak with Todd Moss, vice president for programs and senior fellow at CGD, about his recent trip to the newly categorized lower-middle income country, the implications of IDA graduation, and a sudden influx of oil wealth.

Nigeria, SWFs, and the Resource Curse? Two New Papers

This is a joint post with Stephanie Majerowicz

Nigeria, perhaps the world’s poster child for the oil curse, is the latest country to deploy a sovereign wealth fund as a tool to try to better manage national income. At the same time, Nigeria is struggling with depleted savings and growing fiscal concerns, even in a time of high oil prices. Will the sovereign wealth fund help Nigeria get back on track? What are the chances it won’t be raided by politicians with short-time horizons, as in the past? Could cash transfers help? Two new background papers from CGD’s Oil2Cash Initiative look at these questions from different perspectives.

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