The Future We Need
Across the world, there are many intergenerational funds whose corpus is invested in perpetuity to safeguard the principal and then generate real returns. The country’s 28 states and eight Union territories could set up such funds.
GoG’s new draft GIOPF scheme, CEC’s report with two suggestions, and Goa Foundation’s reservation.
Alaska is continuing its nearly two year long discussion to balance the budget. There are essentially four alternatives (a) sell more oil at low prices, treat receipts are revenue; (b) reduce expenditure; (c) raise taxes, especially introduce an income tax; and (d) raid the Permanent Fund. The discussion has now centered around either an income tax or raiding the Permanent Fund.
We’ve been inspired by Alaska’s Permanent Fund Dividend. With its current budget crisis, we can witness in real time how politicians will try to steal from future generations. Our member, Rahul Basu, writes on how Alaska should view its problems. We hope their Permanent Fund Dividend is restored.
Intergenerational Equity Case Study: Iron-ore Mining in Goa is a new paper by our member, Rahul Basu. “The public trust doctrine makes natural resources a part of the commons, owned equally by all, and legally owned by the state. The resources and opportunities that the present generation have inherited must be available to future generations in perpetuity. In the Goa …
The Economic Survey of India 2016-17 discusses permanent funds in the context of the Goenchi Mati Movement. It also acknowledges the input of our member, Rahul Basu.
The Alaska Permanent Fund and Dividend is under threat again from the politicians. Alaska only deposits 25% of their money from oil into the Permanent Fund. The balance 75% is the largest funding source for the budget. The commodity boom resulted in a large increase in the budget. Expenditure increased with a lag from less than $3 bn in 2005 to …
The Navajo people have established a Permanent Trust Fund under Navajo Tribal Law. Here’s a short history of the Navaho Permanent Trust Fund. In 2014, the Navajo Nation won $554 million in a settlement with the US government over mismanagement of their natural resources. We have already reported on Mendha-Lekha and the Alaska Native and Regional Cooperatives. Will other indigenous peoples set up …
Our movement has been inspired by the permanent funds of Norway and Alaska. In a norwegian article titled “With Oil Fund as a model“, Kenneth Bo Nielsen describes the Goenchi Mati proposal, and considers whether there are aspects for Norway to learn from. The Norwegian newpaper, Bergens Tidende, has published the article.
The Pew Charitable Trusts are doing a series of studies on the fiscal health of US states. Their paper, “From Volatile Severance Taxes to Sustained Revenue” discusses how money received from minerals is a significant cause of volatility in the state government budgets. They also discuss how minerals deplete and often they leave nothing once the minerals are exhausted. While they suggest greater …