Posted on 09/13/2004 5:28:47 PM PDT by tvn
A Way to End the Insurgency- Give All Iraqis an Interest in the Country's Vast Oil Resources.
Real peace will come to Iraq when its citizens join together to support their central government. This can best be done by giving all Iraqis a real financial interest in their country's oil resources. With such a program in place, citizens will find it in their own interest to support the government and assist in preventing the insurgency.
This is far from a new idea as such a citizen benefit has already been established in the State of Alaska.
The following proposal by the LAS AMERICAS COMPANIES is designed to win the minds and hearts of the Iraqi people through the annual distribution of a share of their nation’s oil resources. This is not a new idea, but rather one derived from the successful experience of the State of Alaska, which annually distributes a portion of the state’s’ income from oil production directly to its citizens. It stands to reason that Iraqis will vote their support of a government proposing to make each citizen a true partner in sharing the country’s oil riches.
1. The Alaska Permanent Fund
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 establishing a permanent fund to distribute part of the state’s oil earnings directly to Alaska citizens as dividends.
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 its citizens, thereby providing them with common heritage rights to land and natural resources.
After a court challenge, the Alaska legislature implemented the plan in early 1982. The Fund originally provided that any adult who had lived in Alaska at least six months was to receive dividends of $1,000. For future years, it promised annual dividends based on distribution of half the earnings of the permanent fund in any given year.
Alaska citizens who received a total of $18, 511 in dividends each year from 1982 - 2000. 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. 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.
Overall, the dividend program has dispersed more than $10 billion into the Alaskan economy. The principle of the Fund currently exceeds $26 billion. The Alaska Fund is the first to recognize the full rights of citizens to share directly in the income from public assets.
2. Proposed Iraqi Citizens' Oil Fund
In 2004, Iraq's oil revenues, which have reached over $15 billion through July, are projected to total over $20 billion (US), up from approximately $5 billion (US) in 2003. These revenues are expected to increase in successive years.
As in Alaska, an Iraqi Citizens' Oil 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, Iraq has significant oil resources, which can be used to benefit all Iraqis. Currently, Iraq's per capita gross domestic product is $2,500. Under the prior government, average individual annual income was estimated to be less than $60 (US).
The Citizen's Oil Fund would give each Iraqi citizen a true stake in the economic foundation of newly established country. Each citizen could become a direct partner in Iraq’s economic and political future.
The Iraqi Citizen's Oil Fund would require that the principle of individual ownership be a primary hallmark of the new government. Citizens who are guaranteed economic power by the government will naturally support the newly established system. And, citizen-owners will be highly motivated to join together to devote their efforts to building their country’s future stability and prosperity.
Note: An alternative approach could place all of Iraq's oil resources in a national stock company. All citizens could then be awarded stock interests which would pay dividends (quarterly or even monthly) and increase in value over time. Restrictions could be estblished to prevent the re- sale of stock certificates to non-Iraqis.
NOTE: An alternative approach could involve the placing of the Iraq's oil resources in a stock company and awarding all citizens a stock interest which would pay regular dividends (quarterly and perhaps monthly) and increase in value over time. Restrictions could be established to prevent the re-sale of the corporation's stock to foreign interests.
The architects of the new Iraq have the power to replace the former government monopoly over natural resources with the Citizens’ Oil Fund providing all Iraqis a direct ownership stake in their country’s most valuable resource. Such a plan is in the best interest of Iraq, all Iraqis and the world.
LAS AMERICAS COMPANIES 515 Madison Avenue Suite 2306 New York, New York Tel: 718-784-7786 Email: lasamericasinfo@email.com
Hector Llorens,Managing Director
The Alaska Permanent Fund has done nothing but help Alaska and Alaskans, IMO.
We could do the same in the lower forty-eight. Let every American share in the $48,150 per capita debt. As soon as we got that paid, we could share in the riches that our country was so generously endowed with before the politicians stole it.
</sarcasm>
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.