| For many years Africa has been susceptible to the volatile nature of the commodities markets, resulting in long periods of economic stagnation, accompanied by reductions in social spending and living standards. To counteract these effects, countries like Botswana have created sovereign wealth funds to better manage the revenue from the extractive industries and invest in long-term development.
Policy instruments like deploying sovereign wealth funds might seem obvious to adopt but many governments often face opposition to their creation, even if they are a proven mechanism to better distribute the surplus of the extractive industries. The creation of a sovereign wealth fund directly affect such elites as the revenues of the national natural resources are more transparently and better distributed amongst the population...............................................Full Article: Source
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