Investor Presentaiton
Main takeaways
Bringing structural transformation back into the resource revenue management debate
The suitability of different resource revenue management strategies is highly context-dependent
The standard policy advice has been dominated by short-termism and the lack of a perspective on economic development and
structural transformation. Mainstream approaches have often addressed only the symptoms of commodity dependence (e.g.
vulnerability to commodity price volatility) rather than its root causes (insufficiently diversified productive structures).
The best fiscal stabilisation is economic diversification
The state has a key role to play in shaping the accumulation of productive capabilities related to the emergence of new
exports by reinvesting a share of resource revenues.
• The failure to engage in creative imagination of alternative realities may inevitably lead to maintaining the status quo, where the
risks are serious and tangible.
The alternative resource revenue management model that we propose is more suited to the context of commodity-dependent
developing countries. It also enables the alignment of the dual objectives of short-term stabilization and long-term diversification.
The context of climate change and COVID-19: Reinvesting non-renewable resource revenues in green industries?
Divestment from fossil fuels has started...Low carbon innovation is on its way. What will happen to fossil fuel economies if no
serious action is taken?
Fossil fuel-dependent economies need to undergo a sustainable structural transformation. Investing fossil fuel revenues in
renewable energies leads to a “virtuous circle” of diversification.
⚫ Clean energy deployment is a necessity as demand will focus on goods with low carbon production processes.View entire presentation