Ideas to Action:

Independent research for global prosperity

Oil-to-Cash: Fighting the Resource Curse through Cash Transfers

1/28/13

Todd Moss, senior fellow and vice president for programs at the Center for Global Development, demonstrates how leaders of poor countries can beat the resource curse -- the paradox that countries that strike it rich often suffer from high poverty, dismal governance, and terrible corruption. His policy option, called Oil-to-Cash, helps foster a social contract in resource-rich countries by directly distributing natural resource revenues. Under this proposal, a government would transfer some or all of the revenue from natural resource extraction to citizens in a universal, transparent, and regular payment--and, importantly, then tax part of it back.