| The Sovereign Wealth Fund (SWF) was first publicly discussed immediately before the May 2015 election when Exxon disclosed a “significant” find of oil reserves. In theory, the SWF or simply put, an account where the savings derived from a country’s natural resources are deposited so that they may be used for investment (almost always foreign investment) and budgetary stabilisation measures, is one where the citizens after hearing its explanation would shake their heads and say “yes – that is a good idea”.
It is almost always discussed as a measure to ostensibly avoid the potential pitfalls of the over-referenced but universally false ‘Dutch disease.’ Cde Bharrat Jagdeo, the Leader of the Opposition, is right that a more careful analysis and understanding of comparative fundamental economic indicators will cause one to conclude that a SWF, especially one fashioned on the Canadian and/or Norwegian model, is not what Guyana needs. Why?..............................................Full Article: Source |