Managing future oil revenue in Uganda for agricultural development and poverty reduction: A CGE analysis of challenges and options

With the recent discovery of crude oil reserves along the Albertine Rift, Uganda is set to establish itself as an oil producer in the coming decade. Total oil reserves are believed to be two billion barrels, with recoverable reserves estimated at 0.8-1.2 billion barrels. At peak production, likely t...

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Autores principales: Wiebelt, Manfred, Pauw, Karl, Matovu, John Mary, Twimukye, Evarist, Benson, Todd
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2011
Materias:
Acceso en línea:https://hdl.handle.net/10568/154662
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author Wiebelt, Manfred
Pauw, Karl
Matovu, John Mary
Twimukye, Evarist
Benson, Todd
author_browse Benson, Todd
Matovu, John Mary
Pauw, Karl
Twimukye, Evarist
Wiebelt, Manfred
author_facet Wiebelt, Manfred
Pauw, Karl
Matovu, John Mary
Twimukye, Evarist
Benson, Todd
author_sort Wiebelt, Manfred
collection Repository of Agricultural Research Outputs (CGSpace)
description With the recent discovery of crude oil reserves along the Albertine Rift, Uganda is set to establish itself as an oil producer in the coming decade. Total oil reserves are believed to be two billion barrels, with recoverable reserves estimated at 0.8-1.2 billion barrels. At peak production, likely to be reached by 2017, oil output will range from 120,000 to 210,000 barrels per day, with a production period spanning up to 30 years. Depending on the exact production levels, the extraction period, the future oil price, and revenue sharing agreements with oil producers, the Ugandan government is set to earn revenue equal to 10-15 percent of GDP at peak production. The discovery of crude oil therefore has the potential to provide significant stimulus to the Ugandan economy and address its development objectives. However, this is subject to careful management of oil revenues to avoid the potential pitfall of a sudden influx of foreign exchange. Dominating the concerns is the potential appreciation in the real exchange rate and subsequent loss of competitiveness in the nonresource tradable goods sectors such as agriculture or manufacturing (Dutch Disease). These sectors are often major employers in developing countries and the engines of growth. Several mitigation measures can be employed by government to counter Dutch Disease, including measures that directly counter the real exchange rate appreciation or measures that offer direct support to traditional export sectors in the form of subsidies.
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spelling CGSpace1546622025-11-06T07:05:09Z Managing future oil revenue in Uganda for agricultural development and poverty reduction: A CGE analysis of challenges and options Wiebelt, Manfred Pauw, Karl Matovu, John Mary Twimukye, Evarist Benson, Todd economic competition petroleum computable general equilibrium models With the recent discovery of crude oil reserves along the Albertine Rift, Uganda is set to establish itself as an oil producer in the coming decade. Total oil reserves are believed to be two billion barrels, with recoverable reserves estimated at 0.8-1.2 billion barrels. At peak production, likely to be reached by 2017, oil output will range from 120,000 to 210,000 barrels per day, with a production period spanning up to 30 years. Depending on the exact production levels, the extraction period, the future oil price, and revenue sharing agreements with oil producers, the Ugandan government is set to earn revenue equal to 10-15 percent of GDP at peak production. The discovery of crude oil therefore has the potential to provide significant stimulus to the Ugandan economy and address its development objectives. However, this is subject to careful management of oil revenues to avoid the potential pitfall of a sudden influx of foreign exchange. Dominating the concerns is the potential appreciation in the real exchange rate and subsequent loss of competitiveness in the nonresource tradable goods sectors such as agriculture or manufacturing (Dutch Disease). These sectors are often major employers in developing countries and the engines of growth. Several mitigation measures can be employed by government to counter Dutch Disease, including measures that directly counter the real exchange rate appreciation or measures that offer direct support to traditional export sectors in the form of subsidies. 2011 2024-10-01T14:02:59Z 2024-10-01T14:02:59Z Working Paper https://hdl.handle.net/10568/154662 en https://doi.org/10.1007/978-3-319-60714-6_3 Open Access application/pdf International Food Policy Research Institute Wiebelt, Manfred; Pauw, Karl; Matovu, John Mary; Twimukye, Evarist; Benson, Todd. 2011. Managing future oil revenue in Uganda for agricultural development and poverty reduction: A CGE analysis of challenges and options. IFPRI Discussion Paper 1122. https://hdl.handle.net/10568/154662
spellingShingle economic competition
petroleum
computable general equilibrium models
Wiebelt, Manfred
Pauw, Karl
Matovu, John Mary
Twimukye, Evarist
Benson, Todd
Managing future oil revenue in Uganda for agricultural development and poverty reduction: A CGE analysis of challenges and options
title Managing future oil revenue in Uganda for agricultural development and poverty reduction: A CGE analysis of challenges and options
title_full Managing future oil revenue in Uganda for agricultural development and poverty reduction: A CGE analysis of challenges and options
title_fullStr Managing future oil revenue in Uganda for agricultural development and poverty reduction: A CGE analysis of challenges and options
title_full_unstemmed Managing future oil revenue in Uganda for agricultural development and poverty reduction: A CGE analysis of challenges and options
title_short Managing future oil revenue in Uganda for agricultural development and poverty reduction: A CGE analysis of challenges and options
title_sort managing future oil revenue in uganda for agricultural development and poverty reduction a cge analysis of challenges and options
topic economic competition
petroleum
computable general equilibrium models
url https://hdl.handle.net/10568/154662
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