Simulations made by the World Banks Global Practice for Macroeconomic and Fiscal Management in 2015 suggested that if oil prices in 2015 were to be a third below their average level in 2014, the impact among oil exporters would be highly variable, since these exporters were not equally prepared to cope with the fall in oil prices. Not all of them used effectively the good times of $100-plus/bbl (barrel of oil). The effect of cheaper oil on any one resource-rich country depended on whether it created the external and fiscal buffers to cushion a fall in oil prices. And these macroeconomic buffers help protect the poor. Without buffers, an abrupt loss of resource export earnings means slower or negative growth, higher inflation, and less government revenuethat is, potentially lower employment, higher prices, and less social assistance, resulting in more poverty (Giugale 2015). (a) Discuss in depth, what complicates fiscal risk management in resource rich countries. [20 marks] (b) Taking Zambia as a case study, suggest ways in which these risks can be managed.