Stabilization and Savings Funds to Manage Natural Resource Revenues: Kazakhstan and Azerbaijan Versus Norway

22 Pages Posted: 28 Feb 2011  

Matthias Luecke

The Kiel Institute for the World Economy; CASE - Center for Social and Economic Research

Abstract

Do the sovereign wealth funds of Kazakhstan and Azerbaijan promote the sustainable use of government oil revenues? We review the operational rules and performance of the two funds and compare them to Norway's Government Pension Fund – Global. The key challenges are to stabilize government expenditures despite volatile resource prices, build up a capital stock to draw on after the resource is depleted, and to save and spend resource revenues transparently. We conclude that the institutional framework of a resource fund may indeed enhance transparency and public scrutiny, limit discretionary control, and sustain public support for long-term savings of resource revenues.

Suggested Citation

Luecke, Matthias, Stabilization and Savings Funds to Manage Natural Resource Revenues: Kazakhstan and Azerbaijan Versus Norway. Comparative Economic Studies, Vol. 53, No. 1, pp. 35-56, 2011. Available at SSRN: https://ssrn.com/abstract=1768571 or http://dx.doi.org/10.1057/ces.2010.28

Matthias Lücke (Contact Author)

The Kiel Institute for the World Economy ( email )

P.O.Box 4309
Kiel, D-24100
Germany
+49-431-8814-497 (Phone)

HOME PAGE: http://www.ifw-members.ifw-kiel.de/Members/matthias_luecke_ifw_kiel_de/matthias_luecke_ifw_kiel_de/v

CASE - Center for Social and Economic Research ( email )

Sienkiewicza 12
Warsaw, 00-010
Poland

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