A simple solution to the complex problem of managing the hydrocarbons wealth in Cyprus?

Yesterday I met Prof Rick Van Der Ploeg[1], Research Director of the Oxford Centre for the Analysis of Resource Rich Economies of the University of Oxford. The objective of the meeting was to get more information on two very interesting papers that he has published: «Natural Resources: Curse or blessing?”[2] and «War and natural resource Exploitation»[3]. Both of these papers make very interesting reading. I will summarise his articles in a different blog.

At the end of the conversation, I asked Prof.Van Der Ploeg if he was Cypriot what would he suggest as the method for the best way to share the future wealth of  hydrocarbon discoveries of the island. The answer was direct and surprising simple: use the “Alaskan model”. What is this model? Basically the Alaskan government has set up a Permanent Fund that required that at least 25% of the royalties collected…