Show Summary Details

Page of

PRINTED FROM OXFORD HANDBOOKS ONLINE (www.oxfordhandbooks.com). © Oxford University Press, 2018. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a title in Oxford Handbooks Online for personal use (for details see Privacy Policy and Legal Notice).

date: 24 March 2019

Abstract and Keywords

Historically, a key purpose of sovereign wealth funds (SWFs) has been to help manage and minimize a range of negative economic and political consequences of natural resource wealth, often lumped together as the “resource curse.” This chapter asks to what extent SWFs—specifically “resource funds”—can mitigate the resource curse. It discusses the available empirical evidence for the effectiveness of resource funds as well as the relationship between societal governance and the effectiveness of resource funds. The available findings suggest that wider societal governance is of significantly greater importance for tackling the resource curse than the existence of a resource fund. Bad governance in a country prevents even the most transparent and robust resource funds from becoming an effective policy instrument. Conversely, resource funds can be successful in countries with effective societal institutions such as sound fiscal rules, good quality of government budget documentation, free civil society and independent media.

Keywords: sovereign wealth fund, resource fund, stabilization fund, savings fund, Dutch Disease, resource-rich, governance

Access to the complete content on Oxford Handbooks Online requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.

Please subscribe or login to access full text content.

If you have purchased a print title that contains an access token, please see the token for information about how to register your code.

For questions on access or troubleshooting, please check our FAQs, and if you can''t find the answer there, please contact us.