Natural Resources and Violent Conflict - WaterWiki.net

60 swanson, oldgard, and lundeThe fiscal transparency code can be used as one step in the fiscalmodule of a ROSC. The ROSC is a joint effort by the IMF and WorldBank to summarize the extent to which a country observes certain internationallyrecognized standards and codes. The IMF has identified11 areas and associated standards, based in large part on the fiscaltransparency code and on the Code of Good Practices on Transparencyin Monetary and Financial Policies.ROSCs are prepared and published at the request of a World Bankor an IMF member country, and countries are not under a formalobligation to request them. ROSCs can be used in policy discussionswith national authorities and by the private sector (including ratingagencies) for risk assessment. The information in a ROSC is extensivebut varies by country. 17The fiscal transparency code makes specific recommendations onthe publication of fiscal information. The following recommendedpractices are relevant to resource revenue transparency (IMF 2001c):• The public should be provided with full information on the past,current, and projected fiscal activity of government.• The budget documentation, final accounts, and other fiscal reportsfor the public should cover all budgetary and extrabudgetary activitiesof the central government, and the consolidated fiscal positionof the central government should be published.• The central government should publish full information on thelevel and composition of its debt and financial assets.• A commitment should be made to the timely publication of fiscalinformation.• The publication of fiscal information should be a legal obligationof government.• Procedures for the execution and monitoring of approved expenditureand for the collection of revenue should be clearly specified.Although the fiscal transparency code and fiscal ROSC do notspecifically address resource revenue, they emphasize good practicerelated to all significant sources of revenue. Therefore, the more significantresource revenues are in a country’s overall revenue picture,the more the ROSC is likely to focus on these revenues. For example,if revenues accrue to an extrabudgetary fund, a ROSC would highlightthe need to make the operation of this fund transparent. In addition,the IMF’s Government Finance Statistics Manual, which the fiscal transparencycode recommends using, suggests how data on revenues fromnatural resources should be reported (IMF 2001b). Among othercountries, Azerbaijan has prepared a ROSC, including the element offiscal transparency. Box 3.1 shows some findings from the Azerbaijan