Why we need financial modeling

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. ​

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