Dealing with Dutch Disease

• Published in: World Bank - Economic Premise no. 16; pp. 1 - 7
• Main Authors: Canuto, Otaviano, Vostroknutova, Ekaterina, Brahmbhatt, Milan
• Format: Journal Article
• Language: English
• Published: The World Bank 2010
• Series: World Bank - Economic Premise
• Subjects: agriculture; aid; capital; comodities; Dutch disease; manufacturing; minerals; natural resources; oil; shock; volatility; wealth

This note looks at so-called Dutch disease, a phenomenon reflecting changes in the structure of production in the wake of a favorable shock (such as a large natural resource discovery, a rise in the international price of an exportable commodity, or the presence of sustained aid or capital inflows)....