Suriname’s President Launches Oil Royalties Initiative for Citizens

Suriname’s President Chan Santokhi announced a “Royalties for Everyone” program to distribute oil revenue among citizens, entitling each person to $750 in a high-interest savings account. This initiative comes as the country anticipates a substantial financial influx from offshore oil reserves, projected to yield $10 billion over the next 20 years. The government aims to tackle poverty and ensure inclusive benefits from the oil boom, supported by investments from TotalEnergies that mark a turning point for the nation’s economy.

In a significant development for Suriname’s economy, President Chan Santokhi announced a “Royalties for Everyone” initiative aimed at ensuring that citizens benefit from the country’s newly discovered offshore oil and gas reserves. With projections indicating that Suriname could generate up to $10 billion over the next two decades, the government plans to offer each citizen $750, deposited into a savings account with a seven percent annual interest rate. This initiative aims to alleviate poverty, as nearly 20% of the population currently lives below the poverty line. The announcement corresponds with TotalEnergies’ recent $10.5 billion investment in an oil field off the coast, expected to produce 220,000 barrels daily starting in 2028. President Santokhi emphasized inclusivity in this economic opportunity, stating, “Everyone shall benefit from this opportunity and no one will be left behind.”

Additionally, the government has established a sovereign wealth fund to manage expected oil revenues and mitigate risks associated with reliance on natural resources, acknowledging the challenges faced by other resource-rich nations that fall prey to the so-called “Dutch disease.” This proactive approach aims to harness oil wealth while promoting sustainable economic growth and supporting the welfare of Surinamese citizens.

Suriname, a small South American nation and former Dutch colony with a population of approximately 600,000, is poised to gain substantial financial benefits from its offshore oil and gas reserves. The planned initiatives are in response to a critical socioeconomic context wherein nearly one in five citizens live in poverty, despite an annual GDP of $3.4 billion. The recent oil discoveries, especially with the involvement of major players like TotalEnergies, are expected to transform the nation’s economic landscape significantly. The establishment of a sovereign wealth fund echoes the successful practices of countries like Norway in managing their natural resource wealth responsibly.

In conclusion, President Santokhi’s “Royalties for Everyone” program not only reflects an ambitious strategy to distribute oil wealth among the citizens of Suriname but also highlights a commitment to avoiding the pitfalls of resource dependency. By ensuring that the profits from newfound oil reserves are felt at the individual level and by establishing a sovereign wealth fund, Suriname aims to create a more equitable and sustainable economic future for its people.

Original Source: www.thejakartapost.com