Managing Natural Resource Wealth

It is an historical fact that, on average, resource-rich developing countries, and especially those with oil, perform more poorly than less-endowed countries when it comes to achieving sustainable growth and poverty reduction. Much analysis has been done on the so-called 'resource curse', yet the issue continues to challenge the development community, particularly given the recent surge in oil and commodities prices. Natural resource wealth has been exploited for personal profit, undermining key institutional capacities in already weakened states and threatening domestic stability. CGD's research will build practical knowledge and policy recommendations on how to manage windfall gains from oil and other key mineral revenues to support sustainable growth and poverty reduction in fragile states and will provide concrete lessons and recommendations for shifting the balance toward effective use of natural resources for the public good. Specifically, CGD will seek to consolidate lessons and recommendations on production and management of income flows into the state, macroeconomic management under conditions of significant resource wealth flows, and the use of oil wealth.