Alaska Permanent Fund for Citizens---A Recommended Approach for Iraq

Geophilos ^ | May 20, 2004 | Alanna Hartzok

[tvn]

In 1976 voters in Alaska approved a constitutional amendment creating the Alaska Permanent Fund. It required that at least 25 percent of all mineral lease bonuses, royalties, and rentals be deposited in a fund used only for income-producing investments. At the urging of Republican Governor Jay S. Hammond (1974-82), the state legislature enacted into law the innovative concept of permanent fund dividends to distribute part of the earnings directly to Alaska citizens.

The Alaska Permanent Fund is a case study in a new concept of the role of government - that of agent to equitably distribute resource rents to the people, thereby securing democratic common heritage rights to land and natural resources.

After a court challenge, the legislature implemented the plan in early 1982: any adult who had lived in Alaska at least six months was to receive dividends of $1,000. For future years it promised smaller amounts based on distribution of half the earnings of the permanent fund in any given year.

Those who received dividends each year from 1982 - 2000 received a total of $18, 511. There were 582,105 citizens who received a total of $1,143,172,725 in dividends in the year 2000, which amounted to an individual dividend of $1963 per person. Overall, the dividend program has dispersed more than $10 billion into the Alaskan economy. The principle of the Fund exceeds $26 billion.

[tvn]

Iraq's 2004 oil revenues are expected to total $15-20 billion (US), up from approximately $5 billion (US) in 2003. As in Alaska, an Iraq Permanent Fund for the direct benefit of all citizens could be established by the new government. Citizens seeing the prospect of receiving money from their government, rather than paying money to it, are much more likely to be willing and enthusiastic supporters of the new authority. Fortunately, the country has significant oil resources, which can be used to benefit all Iraqis. Currently, Iraq's per capita gross domestic product is $2,500.

Note: The Alaska Permanent Fund dividend payment in 2002 was $1540 per recipient and $1107 in 2003. These payments provided an annual income of approximately $8,000 per household across the state.

[RedBloodedAmerican]

Good idea, IMO. But who will mind the books?

[Jabba the Nutt]

To me, not setting up an Iraqi Peoples Oil Trust is the single biggest mistake the Bush Administration has made. Now, we are buying off Tribal Sheikhs, Baathist Generals and others. That continues the tribalism of Iraqi society, where individuals and families are dependent on their leaders, clans or tribes for their living. Let's empower the individual and families by setting up an account for every Iraqi national.

There is so much that would come out of this, it's amazing. The Bushies have been letting the Colin Powell PC Police run the occupation. It's not a disaster, but its not a success either.

[ChinaThreat]

I LOVE ALASKA!!!! The last bastion of American Spirit!

[RedBloodedAmerican]

Give it a little time; it hasn't been that long since Saddam was removed, and the transition isn't until later. If Bush had set up a fund, you would hear the "Bush is in it for oil" people (both Republicans and Demodingdongs) crying on the rooftops.

[RedBloodedAmerican]

Me, too. I'd live there if I could. Southeast area.

[Eska]

The PFD is nice but has its downside. Buys supplies and new snowmachines and helps many families but,,, Allows many people to become lazy, have 8-9 kids, and work our expanding system of socialism. Get several kids on social security disability for this or that, medicare, and all the free give aways. Bad for the community.

We live in a bush community. People use to trap, commercial fish, dredge gold claims, cut wood, seasonal employment, ect. Feds make parks, stop all economic activity, put half the town on welfare, and they all become democrats, no joke. Probably half the white people around here are on the dole.

Better to use the PFD money to fund something like old folks homes, college education, or something that would benefit everyone equally. It does make business go thru the roof every Oct.

If America started that in Iraq; they'd luv us. Funny that none of the politicals ever bring this up. Few years back , state had vote on using some of pfd money for govt; people voted it down by 87%, scared politicals off for a couple of years. Politicians will eventually get their hands on it, drives them crazy; but we will sure have fun keeping it out of their hands for as long as possible.