The Political Economy of Natural Resource Funds (International Political Economy Series)

This book aims to foster a better understanding of the particular challenges faced by resource-dependent countries or jurisdictions in managing their resource revenues through natural resource funds (NRFs). It explores the varieties of natural resource management strategies as dictated primarily by domestic politics, and how the potential negative distributional consequences of resource wealth management (the resource curse) may add political dimensions and potential conflicts to decisions about NRFs in ways that other sovereign wealth funds (SWFs) do not experience. By bridging the existing academic and practical knowledge gap arising from the limited attention given to the domestic politics of NRFs and state-society relations, this edited book is a valuable resource for academics, policymakers, and civil society actors in resource-driven economies and especially those interested in learning from comparative experiences of natural resource wealth management through NRFs. Eyene Okpanachi is Marie Curie Fellow at the University of South Wales. He was previously Banting Postdoctoral Fellow at the University of Victoria and Vanier Canada Graduate Scholar at the University of Alberta. Reeta Chowdhari Tremblay is Professor of Comparative Politics and former Provost/Vice President Academic at the University of Victoria, Canada. She is Past President of the Canadian Political Science Association (CPSA). Preface Contents Notes on Contributors List of Figures List of Tables Introduction: The Political Economy of Natural Resource Funds (NRFs) References The Alaska Permanent Fund and the Alberta Heritage Savings Trust Fund: Divergent Paths, Divergent Outcomes Introduction Pre-Establishment Phase—The Alberta Heritage Savings Trust Fund (AHSTF) Pre-Establishment phase—The Alaska Permanent Fund Establishment Stage: The AHSTF and the APF Organization, Governance, and Investment of the AHSTF and the APF Natural Resource Funds in Operation—Alaska and Alberta Conclusion References The Entanglements of Natural Resource Funds: Fundo Soberano de Angola and Domestic Political Interests Introduction Early Post-War Angola: How Economic Fragility Shaped the Angola Fund Governing the Angola Fund The Objectives of the Angola Fund Angola’s Fund Investment and Risk Management Framework The Political Entanglements of the Angola Fund Conclusion References Botswana’s Natural Resource Fund (The Pula Fund) Introduction Botswana: Pre-Establishment Stage Establishment Stage Rules and Structures Governance of the Pula Fund Objectives of the Pula Fund Investment and Risk Management Framework Natural Resource Funds (NRFs) in Operation: Political Struggles over the Funds, Continuity, and Change Conclusion References Chile: A Successful Story in Latin America? Introduction The Chilean Economy: An Overview of the Past 40 Years Chile’s NRFs: Process of Establishment, Characteristics, and Performance Operation of the ESSF The Use of the ESSF: Three Case Studies 2009: The “Successful” Use of the ESSF to Navigate the GFC 2014: The Debate Around the Use of the ESSF to Capitalize CODELCO 2016: Another Announcement of the Use of the ESSF, Another Back Down Conclusion: Is Chile a Successful Case of Management and Use of SWFs? References Saving Today’s Bread for Tomorrow’s Consumption? The Politics of Trade-offs in the Governance of Ghana’s Petroleum Funds Introduction Establishment Stage Rules and Structures Structure—Institutional Framework and Governance Structure Parliament The Public Interest and Accountability Committee (PIAC) Bank of Ghana Investment Advisory Committee (IAC) The Ministry of Finance The Auditor General Objectives Investment and Risk Management Framework Process of Allocation and Spending into the Funds Natural Resource Funds (NRFs) in Operation: Political Struggles over the Funds, Continuity, and Change Summary, Conclusion, and Recommendations References To Save or Not to Save: State Governments and the Construction of Privilegde Over the Creation of Oil Funds in Nigeria Introduction The Political Economy of Nigeria's Oil Dependency and the Challenges of Managing Oil Wealth Responding to Oil Price Volatility through the Creation of an Oil Fund—The Excess Crude Account (ECA) Political Opposition to the Excess Crude Account and the Creation of the Sovereign Wealth Fund Nigeria’s Sovereign Wealth Fund: The Nigeria Sovereign Investment Authority (NSIA) NSIA Funds Allocation Investment Rules and Strategies Withdrawal Rules Governance of the NSIA Governing Council Board of Directors Natural Resource Funds (NRFS) in Operation: Performance, Political Struggles over the Funds, Continuity, and Change Conclusion References A Less Than Sovereign Wealth Fund: Norway’s Government Pension Fund, Global Introduction The Origins of the Fund Did Norway Need a Fund? What Should It Look Like? An Evolving Fund Make-Up Management Operational Overview Operational Snapshot Unique Context Dynamism Size Market Influence Stabilization Performance Conclusion References Old Fund, New Mandate: Saudi Arabia’s Public Investment Fund (PIF) Introduction Oil and Social Contract in Saudi Arabia Saudi Arabia’s Sovereign Wealth from a Historical Perspective 2030 Economic Vision, Rebranding the Public Investment Fund as the Saudi SWF Relaunching the Public Investment Fund Saudi Arabia’s SWF: An Assessment Conclusion References The Timor-Leste Petroleum Fund: From Buying Peace to White Elephants Introduction Background Pre-establishment Stage Establishment Stage Operations Sustainable Management Under Stress: July 2005–August 2011 Infrastructure Investment Management Undermining Rationale: September 2011–September 2018 Equity Investment Management Under New Economic Order: From January 2019 Natural Resources Funds (NRFs) in Operation: Political Struggles Over the Funds, Continuity, and Change Conclusion References Practices and Models: Prospects for Commodity-Based SWFs Introduction Creating a Natural Resource Fund Governing Structures of NRFs Allocating Strategic Assets of NRFs Conclusion References Correction to: The Political Economy of Natural Resource Funds Correction to: E. Okpanachi and R. Chowdhari Tremblay (eds.), The Political Economy of Natural Resource Funds, International Political Economy Series, https://doi.org/10.1007/978-3-030-78251-1 Index