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Begin New Search Topic Natural Resources Political Geography Ghana

11. How Should Donors Respond to Resource Windfalls in Poor Countries?

Author:
Alan Gelb, Anton Dobronogov, and Fernando Brant Saldanha
Publication Date:
07-2014
Content Type:
Working Paper
Institution:
Center for Global Development (CGD)
Abstract:
Natural resources are being discovered in more countries, both rich and poor. Many of the new and aspiring resource exporters are low-income countries that are still receiving substantial levels of foreign aid. Resource discoveries open up enormous opportunities, but also expose producing countries to huge trade and fiscal shocks from volatile commodity markets if their exports are highly concentrated. A large literature on the "resource curse" shows that these are damaging unless countries manage to cushion the effects through countercyclical policy. It also shows that the countries least likely to do so successfully are those with weaker institutions, and these are most likely to remain as clients of the aid system. This paper considers the question of how donors should respond to their clients' potential windfalls. It discusses several ways in which the focus and nature of foreign aid programs will need to change, including the level of financial assistance. The paper develops some ideas on how a donor like the International Development Association might structure its program of financial transfers to mitigate volatility. The paper outlines ways in which the International Development Association could use hedging instruments to vary disbursements while still working within a framework of country allocations that are not contingent on oil prices. Simulations suggest that the International Development Association could be structured to provide a larger degree of insurance if it is calibrated to hedge against large declines in resource prices. These suggestions are intended to complement other mechanisms, including self-insurance using Sovereign Wealth Funds (where possible) and the facilities of the International Monetary Fund.
Topic:
Economics, International Trade and Finance, Natural Resources, and Foreign Aid
Political Geography:
Uganda, Kenya, Tanzania, and Ghana

12. Forecasting Ghana's Oil Revenues for the 2015 Budget Using a Fiscal Model of the Jubilee Field

Author:
David Mihalyi
Publication Date:
12-2014
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
In order to help Ghanaian MPs and the general public understand the potential impact of volatile petroleum prices on the implementation of the 2015 budget, we have built an oil revenue forecasting model. The tool uses only publicly available data and information. It is provided in Microsoft Excel (.xlsx), and released under an open licence so that it can be used by anyone. It can also be edited ,refined, and updated as events in Ghana and the world evolve. This modeling was only made possible due to the advanced state of oil sector disclosures in Ghana: contracts for the most important producing oil field (the Jubilee oil field) are published, the country is EITI compliant, national laws require transparency and regular reporting, and international oil companies such as Tullow and Kosmos disclose further key information.
Topic:
Oil, Natural Resources, Budget, and Revenue Management
Political Geography:
Africa and Ghana

13. Africa's Booming Oil and Natural Gas Exploration and Production: National Security Implications for the United States and China

Author:
David E. Brown
Publication Date:
12-2013
Content Type:
Working Paper
Institution:
The Strategic Studies Institute of the U.S. Army War College
Abstract:
The frenetic search for hydrocarbons in Africa has become so intense and wide ranging that there is planned or ongoing oil and gas exploration in at least 51 of the continent's 54 countries. Knowledge about Africa's geology is improving rapidly, generating great optimism about the continent's energy future. Onshore and offshore rifts and basins created when the African continent separated from the Americas and Eurasia 150 million years ago are now recognized as some of the most promising hydrocarbon provinces in the world. Offshore Angola and Brazil, Namibia and Brazil, Ghana and French Guyana, Morocco and Mexico, Somalia and Yemen, and Mozambique and Madagascar are just a few of the geological analogues where large oil fields have been discovered or are be-lieved to lie. One optimistic but quite credible scenario is that future discoveries in Africa will be around five timestheir current level based on what remains un-explored on the continent versus currently known sub-soil assets. If proven true, this could have a pro-foundly positive impact on Africa's future growth and strategic position in the global economy.
Topic:
Economics, Human Rights, and Natural Resources
Political Geography:
Africa, United States, China, America, Eurasia, Asia, Brazil, Yemen, Mozambique, Mexico, Morocco, Somalia, Angola, Ghana, Namibia, Guyana, and Moldavia