Macroeconomic Management in a Mineral-Rich Economy
This note authored by Keith Jefferis considers some of the macroeconomic challenges and choices that face mineral economies, and explain how they can go well or badly. It draws on the experience of Botswana, which has been one of the more successful economies in Africa, to a large extent because of the way in which mineral wealth has been used and invested, and makes some suggestions as to how some of the challenges facing mineral economies could be resolved in the case of South Sudan. The focus is on ways of minimising the adverse impact of exogenous shocks and achieving sustained, high and equitable growth rates of living standards. This entails coordinated sets of policy instruments: fiscal policy, monetary policy and exchange rate policy.