Blog Post

10 Aug
By: Tanika Jones 0

Green Paper – Managing Future Petroleum Revenues and Establishment Of A Fiscal Rule and Sovereign Wealth Fund

Introduction

  1. This Green Paper is being issued by Government to present preliminary proposals to stimulate discussion. It details specific issues, and then points out possible courses of action in terms of policy and legislation.
  2. This Green Paper on petroleum revenue management and establishment of a fiscal rule and a sovereign wealth fund (SWF) is prepared at the request of His Excellency President David Granger. It is intended to capture key issues for consideration, including the mechanisms to ensure sustainable use of petroleum revenues to achieve a diversified and green economy, with a specific predisposition to avoid mismanagement of the national patrimony (i.e. “natural resource curse”). Cabinet has offered its comments and related amendments, and authorised the laying of the Green Paper in the National Assembly. Feedback will inform the next stage of the process, which is the presentation of the sovereign wealth fund legislation to the National Assembly, before end 2018.
  3. Section I is structured to provide a background relating to petroleum exploration activities in Guyana and the genesis of the SWF, with specific mention of the technical support received from international experts. It then goes on to discuss further key considerations which elaborate the necessity and benefits of establishing a SWF. Special attention is placed on discussing the Dutch Disease, the presource curse and the resource curse as key risks associated with natural resource revenues of this magnitude. Section II will discuss the mechanics of the proposed SWF for Guyana, including the fiscal rule, and will be followed by Section III – concluding remarks – which includes issues for consideration.
Green Paper – Managing Future Petroleum Revenues and Establishment Of A Fiscal Rule and Sovereign Wealth Fund

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