Mineral Wealth Accounting (LINGO Incentives)

Treating non-renewable minerals as a shared inheritance rather than “windfall revenues” constitutes a paradigm shift in managing mineral resources, including oil, gas and coal. Taking intergenerational equity into account and emphasizing the maintenance of capital is essential to ensure that future generations inherit the same wealth as the current generation. The precautionary principle and polluter pays principle as well as a protection of environmental and community interests spring from this approach. Proceeds from mineral extraction should be invested with the long term in mind, alongside improved government accounting practices, promoting sustainable management that benefits all stakeholders and prevents corruption. The IMF is working on integrating the accounting of resource depletion into government finance standards.

Resources :

•  GOA Foundation (2021) IMF & other international standard setters examining government accounting for mineral wealth, Press Notes and Blog, December 2021