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View Full Version : In an oil-producing country, who owns the wealth?



oecarb
01-04-2008, 01:10 PM
If a country is an oil producer, who does the oil belong to?

Example 1 - Kuwait:


Kuwait has a comprehensive scheme of social welfare. The needy receive financial assistance; loans are provided to the handicapped to start businesses; the disabled can get treatment and training; and education is available for adult illiterates. The Ministry of Social Affairs offers a program that provides adequate, affordable housing, fully equipped with modern facilities, for citizens with limited incomes. Kuwait also has a comprehensive and highly developed subsidized national health-care system. In 1976 the government established Kuwait's Reserve Fund for Future Generations, and it has set aside 10 percent of the state's revenues annually for it. The government found it necessary, however, to tap into that fund during the Iraqi occupation.

http://www.britannica.com/eb/article-93654/Kuwait


Example 2 - Norway:


Welfare's Cozy Coat Eases Norwegian Cold
By YOUSSEF M. IBRAHIM
Published: December 13, 1996

Suffer from rheumatism? The Norwegian state will send you to the Canary Islands for a month of therapy, all expenses paid. Husband walked out, leaving children to raise? Not to worry. As a single mother under the generous Norwegian welfare system, you will get special subsidies for the children and paid leave from your job so you can stay home and rear them........

...Buoyed by an unending gush of oil revenue and guided by a national commitment to egalitarianism, Norway's 4.35 million people are fattening the mother of all welfare states......

......The Norwegian welfare cake, surely the sweetest in the world today, includes these ingredients:

Annual stipends of $1,620 for every Norwegian child under 17, which rise slightly for every other child as a family grows and rise still more if the family lives in a remote part of the country.
[/*:m:afa70]
Retirement pay, equivalent to industrial workers' pensions, for all homemakers, even those who have worked outside the home.
[/*:m:afa70]
Forty-two weeks of fully paid maternity leave.
[/*:m:afa70]
Reimbursement for all medical costs exceeding $187 a year per individual.[/*:m:afa70]

....The 165-member Parliament, dominated by the Labor Party, is expected to approve legislation soon for a ''Lifelong Learning'' program, which would give Norwegians a year off their jobs at full pay every decade or so to hone their work skills. The employers and the state would split the cost of paying their salaries.

Even with so many social programs, Norwegian business is doing quite well for itself. It doesn't hurt that it has one of the best-educated and technologically savvy work forces in the world. It certainly helps that Norway reduced the corporate tax rate to 28 percent from 50 percent four years ago.....

....''We are a very social democratic society,'' he said, ''and we don't know another system. It may be costly, but there is social peace. There are no poor people in Norway, and I don't want to see any. There are no strikes, and no high demand for salary increases. I want to adjust the system, but only to preserve it.''

http://query.nytimes.com/gst/fullpage.h ... A960958260 (http://query.nytimes.com/gst/fullpage.html?res=9802E0DD143EF930A25751C1A9609582 60)

Falcon
01-04-2008, 01:38 PM
The oil belongs to the people. The people entrust the Government to sell it and take care of the population.

Watch the 2 countries you selected: one Sheikhdom and one ultra liberal state. The span of systems, so I guess it comes down to a Government being kind hearted and wise.

lexbarker
01-04-2008, 02:55 PM
Natural wealth belongs to the people. Government should collect reasonable royalties and provide useful spending/savings/investment as required. Now ah packing mih suitcase to move to Norway.

dancerboy
01-04-2008, 07:24 PM
Natural wealth belongs to the people. Government should collect reasonable royalties and provide useful spending/savings/investment as required. Now ah packing mih suitcase to move to Norway.

WHO DOES 'UNNATURAL' WEALTH BELONGS TO ? DANCERBOY

lexbarker
01-05-2008, 12:41 AM
Yuh catch me dey. it should have read " Wealth from Natural resources".

Scorpio
01-05-2008, 05:23 AM
Who is wjo, and why he own our wealth ?

Anyway, the people of a country are always it's greatest resource - oil wealth should be invested in the people (not given away to some of them), this is the only way to truly build a nation.

When we have low personal taxation (due to oil revenues), proper health care for all, good roads throughout TNT, running water everywhere including Laventille, proper security and legal system, then and only then can the ppl of people of TNT truly say that they are participating in the country's oil wealth.

oecarb
01-05-2008, 02:27 PM
Natural wealth belongs to the people. Government should collect reasonable royalties and provide useful spending/savings/investment as required. Now ah packing mih suitcase to move to Norway.

Boy, Lex, you hit the crux of the problem. If the wealth (natural resources) belong to the citizens of the country, how they should treat foreigners living there?

Kuwaiti citizenship is one of the hardest in the world to obtain. And Norway aint backward. You can't have every Tom, Dick and Harry jumping in and hoping to share in the money.

oecarb
01-05-2008, 02:34 PM
Anyway, the people of a country are always it's greatest resource - oil wealth should be invested in the people (not given away to some of them), this is the only way to truly build a nation.

Scorpio, In Norway, they invest the oil money and use the interest to pay for all tthe services to the people.


But the North Sea oil bonanza is not squandered on paying for people's transport.

Most of it is saved and invested in a fund for the day when the oil eventually runs out. This nest egg is now worth £103bn ($189bn).

That works out at £22,000 each for me and every other citizen in Norway......


.....To me it is that equality in Norwegian society which makes it so pleasant for the vast majority of people to live here. Very few are immensely rich.

In fact extreme wealth is frowned upon by many.

And even fewer are desperately poor.

There is remarkably little difference between the amount of money a factory worker or bus driver takes home and the pay cheque of a medical doctor.

Both earn just over £2,000 a month.

The following mght make interesting reading:

http://news.bbc.co.uk/1/hi/programmes/f ... 223148.stm (http://news.bbc.co.uk/1/hi/programmes/from_our_own_correspondent/4223148.stm)

Scorpio
01-05-2008, 08:04 PM
Anyway, the people of a country are always it's greatest resource - oil wealth should be invested in the people (not given away to some of them), this is the only way to truly build a nation.

Scorpio, In Norway, they invest the oil money and use the interest to pay for all tthe services to the people.


But the North Sea oil bonanza is not squandered on paying for people's transport.

Most of it is saved and invested in a fund for the day when the oil eventually runs out. This nest egg is now worth £103bn ($189bn).

That works out at £22,000 each for me and every other citizen in Norway......


.....To me it is that equality in Norwegian society which makes it so pleasant for the vast majority of people to live here. Very few are immensely rich.

In fact extreme wealth is frowned upon by many.

And even fewer are desperately poor.

There is remarkably little difference between the amount of money a factory worker or bus driver takes home and the pay cheque of a medical doctor.

Both earn just over £2,000 a month.

The following mght make interesting reading:

http://news.bbc.co.uk/1/hi/programmes/f ... 223148.stm (http://news.bbc.co.uk/1/hi/programmes/from_our_own_correspondent/4223148.stm)

This is what I am talking about, Oecarb.

oecarb
01-08-2008, 06:47 AM
Right, so what about:

Helping out single mothers trying to raise a family[/*:m:ff192]
Helping out families where the household income is low[/*:m:ff192]
Making sure that no family has an income below a certain figure[/*:m:ff192]
Creating jobs so unskilled people can find work[/*:m:ff192]
Providing training in skills - plumbing, carpentry, car maintenance etc[/*:m:ff192]
Paying people while they are training[/*:m:ff192]
Making sure there is decent healthcare and housing for everyone[/*:m:ff192]
Providing decent pensions and extra help for needy old folk[/*:m:ff192]

All these are undertaken by most Western European countries - oil producing or not - including the UK, France, Germany and Ireland. This system is called Democratic Socialism, Social Democracy or is sometimes referred to as Western European Socialism and is totally different from American Capitalism.

The basic idea is that anyone is allowed to make as much money as they want but they have to realise that this is only possible if there is an efficient infrastructure (transport, communications, law and order etc) as well as a well trained work force and they must be prepared to pay for this through taxation.

Indviduals must also contribute to help their compatriots and to fund public services for all.

Incidentally, the unemployment rates in the UK and the Republic of Ireland are about half that of the USA.

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