Reforming Fiscal Institutions in Resource-Rich Arab Economies: Policy Proposals

Mohaddes, Kamiar; Nugent, Jeffrey B.; Selim, Hoda

doi:10.24149/gwp346

Working Paper

Reforming Fiscal Institutions in Resource-Rich Arab Economies: Policy Proposals

Abstract: This paper traces the evolution of fiscal institutions of Resource-Rich Arab Economies (RRAEs) over time since their pre-oil days, through the discovery of oil to their build-up of oil exports. It then identifies challenges faced by RRAEs and variations in their severity among the different countries over time. Finally, it articulates specific policy reforms, which, if implemented successfully, could help to overcome these challenges. In some cases, however, these policy proposals may give rise to important trade-offs that will have to be evaluated carefully in individual cases.

Keywords: Fiscal policy; fiscal institutions; fiscal sustainability; public spending; efficiency; budget transparency; fiscal rules; volatility; oil curse; Arab World; oil exporters; Middle East; North Africa;