Suriname’s President Chan Santokhi launched the “Royalties for Everyone” program to distribute wealth from new oil reserves among citizens. Expected to generate $10 billion over the coming decades, the initiative includes a $750 grant to each citizen, with a 7% annual interest. This strategy aims to combat poverty while establishing a sovereign wealth fund to manage the anticipated oil revenue responsibly, avoiding the traps experienced by other resource-rich nations.
The President of Suriname announced a new initiative titled “Royalties for Everyone” which aims to distribute wealth generated from recently discovered oil and gas reserves among the nation’s citizens. In his recent address, President Chan Santokhi emphasized that the initiative intends to address poverty levels in Suriname, where nearly 20% of the population currently lives below the poverty line. The country, with an estimated population of 600,000, anticipates making approximately $10 billion from offshore oil over the next two decades.
The announcement follows TotalEnergies’ recent $10.5 billion investment in an oil project off Suriname’s coast, expected to yield a production capacity of 220,000 barrels per day starting in 2028. To ensure collective benefit, each citizen will receive an initial grant of $750 into a savings account that accrues an annual interest of seven percent. President Santokhi assured all Surinamese that this initiative will prevent anyone from being left behind as the country navigates its newfound resources.
Historically, nations endowed with abundant natural resources have faced economic challenges, often referred to as the Oil Curse or Dutch Disease, which Suriname is cognizant of. Learning from the experiences of other countries that failed to translate oil wealth into social and economic prosperity, the Surinamese administration has established a sovereign wealth fund to manage the influx of oil revenues judiciously and for future generations.
This initiative comes at a time when Suriname’s oil sector is poised for significant development, with expectations of substantial profits from offshore crude oil deposits. The collaboration with TotalEnergies is a crucial step towards tapping into these resources, which have the potential to drastically alter the economic landscape of Suriname. As the country prepares for this transformation, equitable distribution of wealth becomes a priority, especially considering that a considerable portion of its population currently lives in poverty. The focus on creating a sovereign wealth fund exemplifies a strategic approach to resist the pitfalls other oil-rich nations have encountered.
In conclusion, Suriname’s initiative to provide oil royalties to its citizens is a strategic move aimed at fostering economic justice and lifting a significant portion of the population out of poverty. As the country braces for an influx of oil revenue, careful planning and management through sovereign wealth approaches could help Suriname avoid the economic traps often faced by resource-dependent nations. The President’s commitment to inclusivity and shared prosperity can potentially create a more resilient economy.
Original Source: www.thejakartapost.com
