Applying the Alaska model in a Resource-Poor State: The Example of Vermont

Abstract

Sovereign Wealth Funds (SWFs) are typically found in states or countries with great oil wealth such as Abu Dhabi, Saudi Arabia, Norway, Alberta, and Alaska. The Alaska model might be perceived to apply only to states with oil. Yet SWFs can be based on other valuable resources such as copper (Chile), diamonds (Botswana), or even phosphates (Kiribati). In the United States, the state of New Mexico has three SWFs, the Land Grant Permanent Fund (mineral resources and surface land), Severance Tax Permanent Fund (minerals), and Tobacco Settlement Permanent Fund. Wyoming has a fund from coal, oil, natural gas, oil shale, and other minerals, and Texas has a fund based on royalties and rents from oil, gas, and valuable minerals on public lands.² Of the 50 or more SWFs around the world, only Alaska’s pays a small dividend or basic income to residents. The perplexing reasons for this have been further explored by Angela Cummine in chapter 3 of this volume.

“The meek shall inherit the Earth, but not its mineral rights”

—J. Paul Getty¹