Suriname’s new “Royalties for Everyone” program aims to distribute oil wealth to all citizens, providing each with $750 in a savings account to support poverty alleviation. With anticipated earnings of $10 billion from offshore oil deposits in the coming years, the government seeks to avoid the pitfalls associated with resource abundance by creating a sovereign wealth fund.
Suriname’s President Chan Santokhi has introduced a groundbreaking initiative titled “Royalties for Everyone” aimed at distributing the benefits from the nation’s newly discovered oil and gas reserves. With expectations to generate approximately $10 billion over the next two decades from its offshore oil deposits, this program intends to allocate $750 to each citizen in a savings account, accruing a seven percent annual interest. This ambitious plan is framed against the backdrop of Suriname’s poverty rates, where nearly 20% of the population currently faces financial hardships.
In recent developments, TotalEnergies has unveiled a substantial $10.5 billion oil project set to commence production by 2028, anticipating an output of 220,000 barrels per day. President Santokhi emphasized the importance of ensuring equitable distribution of wealth deriving from this natural resource, asserting that “everyone shall benefit from this opportunity and no one will be left behind.” Furthermore, he acknowledged the lessons learned from other resource-rich nations, pledging to avert the so-called “Dutch disease” by establishing a sovereign wealth fund to manage the oil revenue effectively.
The discovery of significant offshore crude oil reserves has positioned Suriname to potentially transform its economic landscape. With a population of approximately 600,000, the country has historically struggled with poverty, and the introduction of oil royalties represents a strategic effort to alleviate economic disparities. Countries facing similar windfalls, such as Venezuela and Algeria, have often encountered economic pitfalls referred to as the “oil curse.” However, Suriname’s government appears committed to leveraging its resources wisely by observing the successes of nations like Norway, which established a robust sovereign wealth fund to buffer against economic fluctuations and ensure long-lasting benefits from oil revenues.
In conclusion, Suriname’s initiative to distribute oil royalties aims to empower its citizens and alleviate poverty while managing the potential economic hazards associated with newfound oil wealth. President Chan Santokhi’s commitment to equitable wealth distribution, along with the establishment of a sovereign wealth fund, demonstrates a proactive approach to harnessing natural resources for the broader benefit of the nation. The success of this initiative will depend on effective management of these resources and a continued focus on inclusive growth.
Original Source: www.thejakartapost.com
