Thomas I. Palley in
2004 proposed a direct distribution of oil funds to Iraqis. He
discussed the advantages and disadvantages of this plan and at the end
of his analysis, he concludes that for Iraq after Saddam , direct allocation of oil rent is much more better or practical than Alaska experience. In Alaska,
the oil revenues invested in financial assets and securities and every
year eligible citizens get a dividends of these investments. That is
principal amount remain in the fund and guarantee the future trend of
funds from investment. That would satisfy the equality of
inter-generations.
However, Palley, does not believe that Iraqis
environment and institutions are at the proper level and quality of
doing similar policy like Alaska.
Currently
among Iranian scholars and some politicians, this discussion has
emerged. What will be the costs and benefits of direct allocation of
oil rents to Iranians? Why Alaska efficient system (http://www.apfc.org/alaska/dividendPrgrm.cfm) of managing oil rents can not (or might not) be carry out in Iran?
In Iran,
alternative policies for managing oil wealth which have experienced by
the government are "establishing stabilization oil account" in 2000 and
more recently in new government of Ahmadinejad issuing "Justice Shares"
among specific groups of society. However, both of them , proved real
shortfalls. Stabilization Account which initially aimed to protect the
government main revenues from external shocks in oil markets ( about
80% of Iranian foreign exchange revenues come from oil exports and 20
percent of GDP is Oil GDP) was more or less successful , at least for
some initial years after establishment. This can be the reason behind
one of our results in this study showing insignificant
response of government expenditures to asymmetric oil price shocks.
However, lack of transparency and accountability of state on withdraw
from OSF has made this key tool inefficient. Justice Shares plan also
proved very challenging for managing and lack of developed capital
market and culture and knowledge of trading in stock exchange market
has not benefited target groups of this plan.
However, the topic
of direct distribution of oil revenues has remained to a large extent
unexplored. As far as I am aware, there is not a clear theoretical or
empirical study or even a real experiment of this plan in a country.
You can read the paper of Thomas I. Palley here.