… for oil revenues. In a paper co-authored with World Bank Senior Economists Tuan Minh Le and Gaël Raballand, Shanta says
accountability, and hence public-expenditure efficiency, can be increased by transferring oil revenues to citizens and then taxing them to finance public spending ... We conclude that, while it may be difficult to implement such a proposal in existing oil producers, there is scope for introducing it in some of Africa’s new oil producers.
[For more papers from the 2010 Oxford Economic Development in Africa conference, go here.]
Now, how long before the World Bank make the logical leap from decisions they have very little influence over (how developing country governments choose to use their own revenues) to decisions which they do (how rich countries choose to spend their aid in poor countries).
Oil and aid are both money into the government coffers (directly, or indirectly, via fungability), removing the need for government to bother tax people and face any accountability for its actions. In places where there is low accountability and low efficiency of government spending, why not strengthen the hand of citizens rather than the state, and give our aid money directly to the poor.
Cut out the middle-man.