News Column

World Bank and IMF Launch Policy Guidelines On Oil and Mineral Resources

August 25, 2014

Richard Mungai

THE World Bank and the International Monetary Fund have launched guidelines for developing countries on the administration of public revenues derived from petroleum, natural gas and the extractive sectors.

Some of the guidelines in the handbook include suggestions on the practical challenges that developing countries face when trying to retain adequate staff and capacity to handle the complex nature of natural resource revenue administration.

"The resource rich countries' must have relatively competitive salaries dedicated to revenue administration in order to retain personnel. Tactics such as training, performance management and recruitment practices can help the government retain the professionals needed," the book says.

Kenya has had several discoveries of hydrocarbons and minerals in Turkana and Coast regions respectively, which makes it a potential beneficiary of the book. The government says it has already commercialized the Kwale mineral sands adding that the potential of oil in Turkana is still increasing.

The handbook titled 'Administering Fiscal Regimes for Extractive Industries' was authored by Jack Calder, who is the former deputy director of the United Kingdom's oil taxation office.

The bank said the publication provides policymakers and officials in the emerging markets with practical guidelines to establish a robust institutional framework, organisation and procedures for administering natural resource revenue.

"This publication makes an important contribution to knowledge on best practices that can help direct extractive industry revenues towards poverty alleviation and boosting shared prosperity. World Bank director for energy and extractives global practice, Charles Feinstein said during the launch.

The IMF said the book will enable governments to establish strong legal frameworks, modern procedures, and more effective management for administering natural resources revenues.

"Getting hold of the potential revenues from the extractive industries in a fair, effective and transparent way is critical in achieving economic development and macroeconomic stability that we are all looking for," IMF fiscal affairs deputy director, Michael Keen said.

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Source: AllAfrica

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