Prospects and Future of Reforms: Resources Monetization
Natural resources depletion should be offset by manufactured and human capital increase. But there are still wide discrepancies between countries, particularly between North African and Gulf hydrocarbons exporters. Pricing resources below their “social cost” often lead to inefficient consumption, even if this under-pricing contributed to industrial and private sector development. The application of the theoretical framework to two major hydrocarbon exporting countries of the region, Saudi Arabia and Qatar, turns that Saudi Arabia has been building wealth more rapidly than Qatar, a high income country. The two countries seem to be improving the way they manage their economies and their resources.
KeywordsSustainable wealth Resources monetization Fuel pricing Capital
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