Presalt Oil Discoveries (Fajnzylber et al.)

Presalt oil discoveries and the long-term development of Brazil by Pablo Fajnzylber, Daniel Lederman and Julia Oliver published by World Bank (4/2013). “Newly discovered oil reserves off the coast of Brazil present a unique opportunity for the country to boost an already successful trajectory of growth and developmente. This note examines potencial choices for the government when it contemplates how to disburse this newfound wealth. This review suggest that Brazil would be well served by saving a large amount of the windfall, ensuring that the country’s increased wealth reaches the poor, puting in place strong fiscal planning to guide efficient investment, and building the country’s research and development capacity.”