If Somalia drills for oil - need to open fund
- Thread starter Shushue
- Start date
- Status
Kkkkk you know damn well any oil money will be in a swiss bank account the second drilling starts
Yes I’m afraid so
That’s why the money goes directly to the fund
From the oil company to the fund
The gov won’t touch it
Transfers should come from the fund so you can check how much the fund is reduced against spending
Last edited:
Any oil company should be set up as an SOE (State owned enterprise), with upto 49% of shares being available for the public over time. The governments dividends from its holdings should then be placed into a fund, moreover govt. should remain a passive shareholder and let the management be in charge of the operations.
Reason for this is that private investors will have access to the books so it will be under scrutiny.
Last edited:
Yeah
Norway has a budget rule that only 4% of inflation adjusted return of the fund can be spent, this ensures the fund is always growing
Also the management is separate from the gov
We don’t even need a professional management since we’re poor right now and lack expertise
We just buy index funds directly, it can be done today , we just need advice on what to buy
There are plenty of advisory firms like Rothchilds which can help you manage the fund. But why stop at Oil and Gas? Set up SOEs in Utilities, Agribusiness, Transport... essentially anything that requires large startup capital for functions that local businesses can't currently fulfil.
Yes Any recourse that depletes should be invested, it’s so that the future generation can also enjoy the revenues
I’m personally skeptical to state owned enterprises, im a big free market guy
Also the return of the fund matters more, so a global fund is best
It’s also good to sell stakes of the oil company for diversity sake, Norway owns about 70% of the oil company because oil price goes up and down
if drilling where to ever happen and oil is found .no investing in index funds we should keep the money in the country reinvest it in the country
One thing you have to realise is that you can't compare the market in Somalia to the west. "The invisible hand of the free market" is largely a myth, every western government supports their industries from favourable tax and regulations to straight up corporate welfare. Somalia is in a weak position due to not only a lack of financial instituions, but also predatory nations which wish to undermine our economic development. In a totally free market, an OPEC nation could just swoop in and turn off the taps.
Where I'm from in the UK, many large companies such as British Telecom, National Rail, British Petroleum, Royal Mail etc. were created by the government. SOEs can be privatised over time. The american middle class was built off of companies like GE, GM, Boeing and Standard Oil. The public also benefitted from being able to invest in these companies, greatly increasing their wealth as the wealth of the nation increased.
Also you have to consider all the auxiliary businesses that will pop up to support the larger SOEs, these areas can be easily handled by SMEs.
Last edited:
Nothing wrong with foreign companies operating, ownership shouldn’t matter
We don’t have expertise to operate a modern company, it’s a waste to build one yourself quickly
Besides the fund is a separate issue , it’s about return and diversification
@MarehanBanker how can you desire an active government when you’re afraid of corruption?
I thought we were talking hypotheticals
Yes
Big govs are highly inefficient
Free markets all the way
- Status
Trending
-
Oromo nationalist got a hold of all the simping you niggas were doing- Started by Laiis
- Replies: 255
-
-
