The International Monetary Fund and the World Bank recently released a first of its kind joint publication that focuses much needed attention on the administration of revenues from natural resources. The publication entitled Administering Fiscal Regimes for the Extractive Industries: A Handbook fills a void that previously was neglected. While ample research has been conducted on fiscal policies that best enable sustainable growth from its revenues, this is not the case for their administration. This gap is significant since a fiscal regime is only as effective as the administrative capacity of the public institutions charged with its collection.
“This joint publication is one of the first of its kind to address the complex challenges of managing fiscal revenues from the extractive industries,” said Katherine Baer, Division Chief, Revenue Administration Division at the International Monetary Fund.
The publication focuses attention on effectively administering revenues from natural resources. It provides policymakers and officials in developing and emerging market countries with practical guidelines to establish a robust institutional framework, organization and procedures for administering natural resource revenue. It also highlights the importance of transparency in the face of ever-increasing demands from both domestic and international constituencies for clarity and accountability in the administration of public revenues from natural resources. Lastly, it provides recommendations on how developing countries can strengthen their managerial and technical capacity to administer these revenues.