Wealth, Welfare and Sustainable Growth and Development: Challenges of Economic- and Fiscal Policies in Resource-Producing Countries

For Resource-Producing countries (RPCs), there are two main challenges for economic management: • How should economic- and fiscal policies be designed and executed efficiently to sustain growth and development in the face of exhaustability? • How should Ministries of Planning and Finance in these countries measure economic performance? It is concluded that establishing clear guidelines for sustainable fiscal policies and transparent saving instruments, adjusted to the level of development and national circumstances, is essential for longer term growth and sustainable development in all RPCs. Sustainable fiscal policies should contain the following elements: • Effective rent capture by governments; • Saving rules and fiscal guidelines to limit discretionary use of resource revenues domestically; • A savings instrument regarding resource revenues, preferably a Natural Resource Fund; • Effective public management.