Suriname’s Royalties for Everyone: Direct Payments from Oil Revenues to Citizens

President Chandrikapersad “Chan” Santokhi announced the Royalties for Everyone program, aiming to grant Surinamese citizens US$750 from future oil royalties with a 7% annual interest. The initiative seeks to ensure direct benefits from natural resources, enhance local financial engagement, and promote economic development ahead of the anticipated oil sales from Block 58, with implementation scheduled for 2025.

In a significant policy announcement, President Chandrikapersad “Chan” Santokhi declared the launch of the Royalties for Everyone (RVI) program that will allocate an oil royalty of US$750 to each citizen of Suriname, with an annual interest of seven percent. The payment is to be derived from future royalties after oil from offshore Block 58 is sold. This financial instrument aims to foster economic opportunities and promote a more equitable distribution of national wealth among the population. The RVI is pegged to the US dollar to ensure stability, with distributions to be made in Surinamese dollars. Special arrangements will also be made for elderly citizens and individuals with disabilities to access their funds before 2028.

President Santokhi emphasized the significance of this initiative in enabling citizens to benefit directly from the country’s natural resources. The launch follows discussions with TotalEnergies regarding the development of the GranMorgu project, which involves significant investments and aims for first oil production by 2028. TotalEnergies, along with Staatsolie, holds equity in Block 58, reinforcing the cooperative venture between public and private sectors for resource development.

The Suriname Constitution advocates for collective ownership of natural resources and equitable wealth distribution, aligning with President Santokhi’s goals for the RVI. The initiative is anticipated to stimulate economic activity and encourage financial participation among citizens, reminiscent of successful models in regions like Alaska. Santokhi stated that this program would emerge without burdening the state with loans, instead utilizing a portion of anticipated future royalties for citizen payouts. The complete implementation of this financial instrument is slated for the first half of 2025, promising to enhance citizens’ financial engagement and assert their collective stake in Suriname’s natural endowments.

Suriname has an extensive natural resource base, particularly in the energy sector, contributing significantly to its economy. The government, in alignment with constitutional mandates, is keen on ensuring that citizens reap benefits from these resources. Previous discussions with major energy firms have set the stage for development projects that not only increase output but also enhance local economic stability. The Royalties for Everyone program embodies a progressive approach to wealth distribution and citizen empowerment, placing the population at the forefront of the economic opportunities generated from the country’s hydrocarbons.

The Royalties for Everyone program represents a pivotal step toward financial inclusivity for Suriname’s citizens, promising compensation derived from national resources. This initiative aims to empower Surinamese by ensuring a direct monetary stake in oil royalties, thereby fostering economic growth and reducing the informal economy. As the program moves towards implementation in 2025, it stands to redefine the relationship between the state and its citizens concerning resource wealth, ensuring that all segments of society can share in the nation’s prosperity.

Original Source: caribbean.loopnews.com