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Maybe Australia should follow Norway sovereign fund idea: "I don't think anyone expected the fund to ever reach $1 trillion when the first transfer of oil reve
by RobertoG 8y ago
Maybe Australia should follow Norway sovereign fund idea:
"I don't think anyone expected the fund to ever reach $1 trillion when the first transfer of oil revenue was made in May 1996."
From:
https://money.cnn.com/2017/09/19/investing/norway-pension-fund-trillion-dollars/index.html https://money.cnn.com/2017/09/19/investing/norway-pension-fu...
- pytester 8y agoIn theory every country rich in natural resources should follow Norway's example but in practice the presence of natural resources tends to exert a strong corrupting influence on both the economy and the political system: https://en.wikipedia.org/wiki/Resource_curse https://en.wikipedia.org/wiki/Resource_curse
- RobertoG 8y agoIn theory you are right but, in practice, that only happens because they don't follow Norway's example :-)
- marvin 8y agoNorway only dodged this because we had a supremely visionary Iraqi visit the authorities, and managed to convince them of this danger while the industrial influence was still small enough for government to manage. It's a remarkably lucky coincidence.
- fireflies_ 8y agoDo you have any resources about this? It sounds like a fascinating story.
- maaaats 8y agoFarouk al-Kasim. It's a fascinating story, glad I found this in webarchive as it's now behind a paywall. http://web.archive.org/web/20100123225932/http://www.ft.com/cms/s/2/99680a04-92a0-11de-b63b-00144feabdc0.html http://web.archive.org/web/20100123225932/http://www.ft.com/...
- bscphil 8y agoThank you, this is fascinating!
- netsharc 8y agoHoly moly, what a story. I remember reading it a few years ago, and what a crazy example of butterfly effect. The one Norwegian girl who decided she wanted to be an au-pair in London, and met an Iraqi boy there, changed the whole country.
- aerophilic 8y agoI really enjoyed the story... but find myself wondering what was the specific “magic” that made it work. Nowadays everything is “setup” for the cooperation of public and private, but what are the key “ingredients” to make it happen? The fact that this worked out, is it something unique to that situation, or cannot be duplicated? The part I find most enticing is this idea of the government shouldering 50% of the risk, and industry only having to do 15%. If anyone could expand on this, I would appreciate it.
- patrickk 8y ago> Nowadays everything is “setup” for the cooperation of public and private, but what are the key “ingredients” to make it happen? Norweigans trust their government, corruption is low, there's strong institutions already in place (a point specifically mentioned by al-Kasim in the Planet Money podcast) to ensure a competent and transparent execution of the plan. There's not many places in the world where all those factors exist sadly.
- LMYahooTFY 8y agoIs there a source of information you could point me to that explains more of this story?
- maaaats 8y agoSee my link to a sibling comment of yours
- aembleton 8y agoPlanet Money made an episode about this http://www.podcasts.com/npr_planet_money_podcast/episode/301_norways_got_advice_for_libya http://www.podcasts.com/npr_planet_money_podcast/episode/301...
- sseppola 8y agoThanks!
- the-dude 8y agoDutch disease : https://en.wikipedia.org/wiki/Dutch_disease https://en.wikipedia.org/wiki/Dutch_disease
- ethbro 8y agoAlso the "resource curse". Although a more accurate formulation seems to be the "sudden resource curse". E.g. how the discovery that citrus prevents scurvy and the subsequent spike in prices likely led to the emergence of the Sicilian mafia
- Ecolog 8y agoNorway - the country that avoided the oil curse
- deleted 8y ago[deleted]
- pxi 8y agoInterestingly there's a connection between WA and Norway that not everyone is entirely pleased about: https://www.fightforthebight.org.au/ https://www.fightforthebight.org.au/
- healsjnr1 8y agoWe would love to. Trust me, we really really would. But the is such huge amount of great mongering about corporate add mineral taxes that no major party will attack it. The Minerals Council of Australia is incredibly well funded and hugely politically influential.
- askvictor 8y agoNah, we're far too short sighted for that sort of thing.