Prices of oil and minerals can go really high. A country may benefit given the right fiscal regime. During the boom cycle in the latter half of the previous decade, many resource-rich countries saw their budgets swelling (and their dictators happy). Along with it came their spending as well.
Then the unexpected happened. Prices reached all-time lows since 2011. Resource-dependent countries are now struggling with a fiscal crisis caused by their lack of diversification and prudence in spending in the past.
What can governments do about this? Plan for the long-term.
Hey there! I'm Marco from the Philippines. I write mostly about natural resource governance, open data, and good governance.