Economics of Natural Resources in Latin America

Osmel Manzano is Regional Economic Advisor for the Country Department for Belize, Central America, Mexico, Panama and Dominican Republic at the Inter-American Development Bank, USA. He is responsible for the economic work and macroeconomic monitoring of the IADB in Central America, Mexico and the Dominican Republic.Fernando Navajas is Professor of economics at the Universities of Buenos Aires and La Plata and Chief Economist at FIEL, Argentina. He is currently President of the Argentine Association of Political Economy and Director of the Applied Economics Institute of the National Academy of Economic Science of Argentina.Andrew Powell is Principal Advisor in the Research Department (RES) of the Inter-American Development Bank, USA. He has published numerous academic papers in leading economic journals in areas including commodity markets, risk management, the role of multilaterals, regulation, banking and international finance.

• Chapter 1: The Taxation of Non-Renewable Resources in Latin America: Introduction and Overview Commodity prices, the super-cycle and implications for fiscal revenues Recent literature on non-renewables Institutions and instruments: gaps in relation to best practices What next for resource tax systems in Latin America? ConclusionsChapter 2: The effects of commodity taxation on sector performance Methodological approach Results Concluding remarksChapter 3: Towards efficient taxation of minerals: The case of copper in Chile The role of copper in Chilean Development Mining sector today Deacon’s Model Data and parameters Relevant Tax Regimes in the Case of Chile Simulations of the scenarios Concluding remarksChapter 4: Two sectors, two approaches: resource taxation in Peru Institutional Setting The Model Data Results Introducing depreciation in Deacon’s Model Concluding remarksChapter 5: Not all fields are created equal: The challenge of oil taxation in Venezuela The Theory on Oil Production and Taxes. The Venezuelan Case Estimating the Effects upon Oil Exploitation of the Tax Rules A brief review of the performance sector Concluding RemarksChapter 6: Regulation and State Intervention in Non-Renewable Natural Resources: the cases of the oil and gas sectors in Argentina. Some facts about the oil and gas sectors in Argentina after the 2001-2002 crisis. Making sense of regulations: a dynamic political-economy agency model of state intervention in the gas market Self-enforcing equilibrium characterization with no exports, positive imports and positive subsidies. Rationalizing facts on Argentina’s oil and gas in the 2000’s with the model results. Some policy implications. Concluding remarksChapter 7: Oil Sector Performance and Institutions in Latin America Analytical Framework Empirical Evidence Concluding RemarksChapter 8: Transparency Matters The Evolution of the EITI Prior Research Data and Measurement Issues Empirical Model and Estimation Methodology Findings Case Studies: Nigeria and Peru Concluding Remarks