Re: Natural Resource Curse and Citizen Revenue Distribution Funds

["Gernot Koehler" <gktbg1@xxxxxxxxxx>]

An interesting proposal. Should be appealing to post(-)Keynesians.

The proposal is presented not only as an alternative to the model of
top-heavy, corrupt, government-owned oil industry, but also as an
alternative to the model of "privatization" (throwing oil production and
distribution to the wolves of the multinational oil industry).

Gernot Köhler, Ph.D.
(Canada and Germany, presently writing from quaint old university town of
Tuebingen in Germany)

In response to:
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Natural Resource Curse and Citizen Revenue Distribution Funds
by Thomas I. Palley      23 July 2003

      Dear Colleagues,

      Please find attached a discussion paper "Combating the Natural
Resource Curse with Citizen Revenue Distribution Funds: Oil and the Case of
Iraq."
      Such funds can contribute to lasting economic and political
transformation. However, it is critical that any decision to create a fund
be taken by the Iraqi people, through legitimate democratic
institutions.Only this can ensure lasting political legitimacy.

      I hope you find the paper of interest.
      Sincerely,

      Tom Palley

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quote from the paper:

DISCUSSION PAPER

Combating the Natural Resource Curse with Citizen Revenue Distribution
Funds: Oil and the Case of Iraq

Executive Summary

Iraq provides another example of the natural resource curse, whereby natural
resource revenues cause economic stagnation and detrimental political
outcomes, rather than growth and development. This paper examines the idea
of an oil revenue distribution fund (ORDF) that would directly distribute
part of Iraq's oil revenues to Iraqis. Such a fund can unleash positive
lasting economic and political transformation. However, it is critical that
the decision about creating a fund be made by the Iraqi people, through
legitimate democratic institutions. Only this can ensure lasting political
legitimacy.

On the economic side, an ORDF can empower citizens to lead economic growth.

Oil rich countries frequently suffer from economic activity skewed toward
excessive government, which also promotes corruption and conflict. An ORDF
can help rectify this. On the political side, it will give ownership to
citizens, thereby creating an incentive for political engagement to protect
that ownership. . . .
[end quote]