Citizens Wealth

A wide-ranging analysis of a powerful but controversial new economic tool that has rapidly eclipsed the size of the hedge fund market In 2006, Chile teemed with protesters after finance minister Andrés Velasco invested budget surpluses from the nation's historic copper boom in two Sovereign Wealth Funds. A year later, when prices plummeted and unemployment soared, Chile's government was able to stimulate recovery by drawing on the funds. State-owned investment vehicles that hold public funds in a wide range of assets, Sovereign Wealth Funds enable governments to access an unprecedented degree of wealth. Consequently, more countries are seeking to establish them. Looking at Chile, China, Australia, Singapore, and numerous other examples, including a comparative analysis of Britain and Norway's use of oil revenues, Angela Cummine tackles the key ethical questions surrounding their use, including: To whom does the wealth belong? How should the funds be managed, invested, and distributed? With sovereign funds--and media attention--continuing to grow, this is an invaluable look at a hotly debated economic issue.

"Hydrocarbon Citizens tells the story of how the discovery of oil has transformed politics and societies in the Middle East. It argues that the creation of oil-dependent economies gave birth to a new type of citizen in the region: the "hydrocarbon citizen." These citizens hold attitudes, values, and beliefs about their governments and national politics that are very different from what is observed among citizens in the countries that do not produce oil. Hydrocarbon citizens are more likely to view their governments as highly effective, generous, helpful, and responsive to the needs of society. They also tend to be more sceptical about the merits of democracy and more likely to believe that democratic governments are ineffective, unstable, and full of problems. These arguments and findings are explored through rich histories of Middle Eastern countries, in-depth analysis of public opinion data, and original surveys from Saudi Arabia and the United Arab Emirates. Hydrocarbon Citizens challenges our understanding of the puzzling "resource curse" observation that paradoxically links oil wealth to negative outcomes for nations. It provides a new way of thinking about contemporary politics and society in the Middle East, a region currently defined by upheaval and reinvigorated authoritarianism"--