The paper offers an effort to define, measure and statistically analyze the factors that explain effective stabilisation funds. While the paper confirms the suspicion that stabilization funds are not the panacea for protecting resource dependent economies from the volatility of commodity prices or ensuring long term investment, it suggests that successful stabilization funds occur where the state is able to enforce the rule of law and protect democratic liberties.
This is a two-page summary of a forthcoming IDS Working Paper.
Brighton, UK: Institute of Development Studies, 2 pp.
Research Summary 30. The Political Economy of Stabilisation Funds: Measuring their Effectiveness in Resource-Dependent Countries.