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Stabilization and savings funds to manage natural resource revenues: Kazakhstan and Azerbaijan vs. Norway

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  • Lücke, Matthias

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

  • Lücke, Matthias, 2010. "Stabilization and savings funds to manage natural resource revenues: Kazakhstan and Azerbaijan vs. Norway," Kiel Working Papers 1652, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1652
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    References listed on IDEAS

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    Cited by:

    1. International Monetary Fund, 2011. "Republic of Kazakhstan: Selected Issues," IMF Staff Country Reports 2011/151, International Monetary Fund.
    2. Kyle, Steven C., 2014. "Mineral Revenues and Countercyclical Macroeconomic Policy in Kazakhstan," Working Papers 180170, Cornell University, Department of Applied Economics and Management.

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    More about this item

    Keywords

    resource-based development; sovereign wealth fund;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels

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