20.01.2014 - Israel approves the creation of a sovereign wealth fund
The creation of a sovereign wealth fund in Israel was approved on Wednesday by the Knesset Science and Technology Committee. The bill included an additional detail stipulating that the special committee in charge with managing the fund’s budget will be led by the Knesset House Committee Chairman. The creation of the sovereign wealth fund is essential to prevent the eventual negative repercussions of a substantial inflow of revenues from the sale of natural gas to export markets. The phenomenon is commonly known as ‘Dutch Disease’ and is one of the negative effects of an energy boom. The increase of wealth could cause a strengthening of the local currency - the Shekel - to the detriment of other industries that could lose in competitiveness...............................................Full Article: Source
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