ABSTRACT
Indonesia and Nigeria are agricultural-based, primary commodity-exporting countries which experienced a large transfers of wealth, brought about by two major oil booms over 1972-82. Papua New Guinea (PNG) experienced major booms in the same period. This chapter examines whether the divergent economic performance of these countries was the result of unequal magnitude of the resources booms, or the different policy measures adopted and implemented by the respective governments. It briefly discusses the nature and magnitude of the oil booms in Indonesia and Nigeria during 1972-82. The chapter provides a description of policy responses by the Indonesian and Nigerian governments. It provides a comparative study of the oil booms in Indonesia and Nigeria with that of the resources booms in PNG, and attempts to compare the magnitude of the booms and the different policy measures adopted in response. It analyses the effects of these booms on domestic inflation, real exchange rates and employment and wages movements.
