Macro-Fiscal Gains from Anti-Corruption Reforms in the Republic of Congo

Download or read book Macro-Fiscal Gains from Anti-Corruption Reforms in the Republic of Congo written by Mr.Giovanni Melina and published by International Monetary Fund. This book was released on 2019-06-03 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper argues that oil revenue management and public investment in Congo are vulnerable to corruption as a result of limited transparency and accountability. Corruption has potentially contributed to poor macro-fiscal outcomes. The paper acknowledges the authorities’ anti-corruption efforts made so far and proposes further critical reforms to reduce remaining vulnerabilities. Using a dynamic stochastic general equilibrium model results show that, depending on the reforms adopted, the potential additional growth can range between 0.8 to 1.8 percent per year over the next 10 years, and debt can decline by 2.25 to 3 percent of GDP per year over the same period. These results suggest that macrofiscal gains from anti-corruption reforms could be substantial even under conservative reform scenarios.