In resource-dependent countries, naturalresources constitute one of the main assets available forfinancing local governments because the economy is notgreatly diversified. The goal of this note is to highlightdifferent critical dimensions of intergovernmental fiscalrelations in these settings, present a survey of the rangeof arrangements used for managing resource rents acrossmultiple levels of government, and synthesize basicprinciples or considerations in the implementation ofrevenue-sharing systems across different contexts. Thedesign and implementation of measures to improveintergovernmental management of the oil, gas, and miningsector must consider the core policy objectives, fiscalcontext, and overall political structure. Paying attentionto the constraints and political economy drivers that shapeintergovernmental relations is critical to identify thefeasible reforms and alternatives to improve performancethat are available in a given country.
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