Sovereign Wealth Fund (SWF) Policy Options for Philippine Off-shore Energy Resources


ASOG Working Paper Series 21-026

70 Pages Posted: 1 Oct 2021

See all articles by Emerson M. Sanchez

Emerson M. Sanchez

University of Canberra

Jayson Lamchek

Australian National University (ANU)

Mark Bryan Manantan

Pacific Forum

Date Written: September 30, 2021

Abstract

This study aims to stimulate discussion of the country’s policy framework for managing existing and potential energy resources. It argues that a well-designed Sovereign Wealth Fund (SWF) can positively transform the country’s management of proceeds from energy resources as well as bolster Philippine sovereignty over those resources. Towards this goal, we set three specific tasks: (1) to provide a survey of the literature on SWF, with a focus on instructive examples from the region; (2) to derive policy standards and other lessons from selected case studies of SWFs in the region, particularly Singapore, East Timor and Indonesia and (3) using these lessons, to discuss policy options for a Philippine SWF.

Existing discussion of SWF in the Philippines tends to start with a privileged set of putative universal or international norms for the design of SWFs, namely, the so-called Santiago Principles promoted under the aegis of a working group of the International Monetary Fund. Instead of presuming global consensus, the study unpacks the historical and political backgrounds of SWFs of the three case studies.

The study formulated the insights derived from the case studies in terms of policy standards, political conditions, and consequences. The paper then applied these insights to the question of designing a Philippine SWF. It approached this question by reimagining the Malampaya Fund as a SWF, thus laying down policy options that avoided resource plunder and promoted better outcomes in terms of transparency, governance, and benefit to Filipinos. Finally, it provided a discussion of the potential contribution of SWF to Philippine sovereignty, with a specific commentary on the management of the yet-to-be developed resources of the Philippine Rise.

Keywords: Sovereign Wealth Fund, Santiago Principles, Malampaya, Philippines, Benham Rise

Suggested Citation

Sanchez, Emerson M. and Lamchek, Jayson and Manantan, Mark Bryan, Sovereign Wealth Fund (SWF) Policy Options for Philippine Off-shore Energy Resources
 (September 30, 2021). ASOG Working Paper Series 21-026, Available at SSRN: https://ssrn.com/abstract=3933724 or http://dx.doi.org/10.2139/ssrn.3933724

Emerson M. Sanchez (Contact Author)

University of Canberra ( email )

Canberra, Australian Capital Territory 2601
Australia

Jayson Lamchek

Australian National University (ANU) ( email )

Canberra, Australian Capital Territory 2601
Australia

Mark Bryan Manantan

Pacific Forum ( email )

003 Bishop Street, Suite 1150,
Honolulu, HI 96813
United States

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