Analysing Policy Impact in Preparation for Post-Hydrocarbon Era of Brunei Darussalam

Brunei Darussalam (hereafter Brunei), a small and open economy highly dependent on hydrocarbon revenues, is facing the inevitable fate of the economic depletion of its oil and gas resources. With limited success in its diversification efforts for the past decades, Brunei will face a challenging future. In this chapter, using a recursive dynamic, computable general equilibrium (CGE) model called BRUGEM, we attempt to elucidate such a post-hydrocarbon scenario. We also outline an alternative (policy) scenario in which unspecified policy options are put in place to revive economic growth in Brunei through improved productivity performance.