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Dutch Disease and Spending Strategies in a Resource-Rich Low-income Country : The Case of NigerThis paper examines spending plans
 suggested by the recent literature regarding Dutch disease
 and examines their implications to Niger relative to its
 expanding mineral sector. The key to the benefits of
 significant mineral revenue lies with the productivity and
 supply responses of spending. If significant output gain is
 ensured, then there is little difference across the spending
 plans in their effects on real consumption. The overshooting
 of relative prices of the non-tradable sector or the
 shrinking share of traded sectors in gross domestic product
 is also ameliorated with greater supply flexibility. Growth
 paths of alternative spending strategies differ markedly in
 timing and pattern when spending does not raise
 productivity. As a caution against expectations that
 exaggerate the benefits of mineral revenue under all
 circumstances, the more aggressive spending plan may result
 in a boom-bust cycle if fiscal adjustments and debt
 repayments are necessary for any significant borrowing
 against future revenue and productivity gains are not
 realized. Using extractive industries revenue for transfers
 to households would have a greater effect on poverty
 reduction in the short and medium term but the long-run
 gains from investment in human and physical capital are
 likely to offset the initial lack of pro-poor bias.
 Different strategies differ significantly with regard to
 risks and required technical implementation capacity and
 political capacity to sustain a chosen course of action.
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A Growth and Adjustment Strategy for PakistanThis paper is divided into four
 sections. The first provides a quick overview of the current
 political and economic situation, focusing in particular on
 the stagnation of growth and deepening macroeconomic
 imbalances, and a fast approaching balance of payments
 crisis. The second section focuses on ways to improve
 macro-economic balances especially public finances not only
 by increasing revenues but restructuring expenditures
 including reductions in subsidies to the non-poor and
 increasing the effectiveness of public spending. The third
 section focuses on critical elements in reviving growth. The
 paper argues for a comprehensive growth strategy which
 focuses on governance as a central issue. Reversing the
 decline of public institutions and improving the quality of
 governance will provide confidence in the country's
 economic future and will result in increasing domestic
 investment. Other elements of the strategy must involve
 improving the energy situation; correcting the long neglect
 of exports and using international trade as a driver of
 growth (including opportunities that may become available
 by the intended normalization of trade with India);
 reversing the decline on growth rate of agriculture both by
 supporting diversification in the cropping pattern;
 processing of agricultural products, and more economical use
 of inputs (especially water); a new push on human
 development including quality of education in public
 schools, skills training and a new emphasis on adult
 literacy; and, a new compact with the private sector that
 phases out economic rents, reduces the burden of unnecessary
 or ineffective regulation not excluding labor legislation,
 and strengthens incentives for investment and productivity
 improvements especially in moving up the value added chain.
 Finally, the fourth section presents a summary of key
 actions that government could take along with a timeline for implementation.
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Mineral-Rich Countries and Dutch Disease : Understanding the Macroeconomic Implications of Windfalls and the Development Prospects, The Case of Equatorial GuineaReferring to the original context of Dutch Disease, the term refers to the fears of de-industrialization that gripped the Netherlands as a result of the appreciation of the Dutch currency that followed the discovery of natural gas deposits. Expansion of petroleum exports in the 1960s not only crowded out other exports, it actually reduced other exports disproportionately and fueled the fears of dire consequences for Dutch manufacturing. In the case of Equatorial Guinea, the secondary sector represents about 2 percent of the gross domestic product, manufacturing represents less than 1 percent, and oil represents more than 95 percent. The negative impact of the Dutch Disease in this context would be limited given the structure of the economy and on the contrary may even be a good thing because it fuels the structural transformational process of the economy, which is needed in Equatorial Guinea. This paper argues that the ongoing Dutch Disease is a natural and necessary reallocation of resources in the economy of Equatorial Guinea. The magnitude of negative macroeconomic consequences of the Dutch Disease depends on the country's economic structure and stage of development. In a country where the manufacturing sector barely exists or where the non-oil primary sector is structurally deficient, as has been the case of Equatorial Guinea, there is little to fear about the disease. The oil boom is a blessing, given that oil revenues when properly managed can play a special and critical role in overall economic development and poverty reduction in low-income countries. To promote good governance in the management of the country's oil wealth, the government may wish to adhere to clear standards of accountability and transparency; especially by complying with the Extractive Industries Transparency Initiative (EITI++).