On Independence Day, Suriname’s President Chan Santokhi announced the “Royalties for Everyone” program, providing each citizen with $750 from upcoming oil revenues. With an expected oil boom worth $10 billion over 20 years and significant partnerships like TotalEnergies, this initiative aims to alleviate poverty and enhance economic equity in a country where nearly 20% live in poverty.
Suriname’s President, Chan Santokhi, has introduced a groundbreaking initiative titled “Royalties for Everyone,” aiming to ensure that all citizens benefit from the nation’s burgeoning offshore oil and gas industry. With both Suriname and neighboring Guyana poised to capitalize on substantial crude oil deposits, expectations indicate that Suriname could generate approximately $10 billion over the next one to two decades.
In a recent address, President Santokhi stated that each citizen would receive a one-time payment of $750, deposited into a savings account with a seven percent annual interest rate, highlighting his commitment to economic equity by ensuring that “no one will be left behind.” With the backdrop of around 20% of Surinamese citizens living in poverty and an annual GDP of roughly $3.4 billion, this initiative aims to transform the socio-economic landscape.
TotalEnergies, a French oil company, is set to launch a $10.5 billion project off Suriname’s coast, expected to produce 220,000 barrels of oil per day by 2028. In anticipation of the impending oil wealth, the Surinamese government has also established a sovereign wealth fund, mirroring the successful model implemented by Norway to mitigate the risks associated with resource dependency, often referred to as the “oil curse.”
The context of Suriname’s recent developments revolves around its significant offshore oil and gas reserves, which are anticipated to drastically boost the country’s economy. Being a relatively small nation with a population of approximately 600,000, Suriname has faced persistent poverty challenges, affecting nearly 20% of its population. The introduction of oil royalties is a strategic move designed to distribute wealth more equitably amongst its citizens, countering issues seen in other resource-rich nations that struggled to convert oil wealth into economic prosperity. The collaboration with TotalEnergies marks a pivotal moment in Suriname’s industrial growth, providing much-needed infrastructure and investment.
In summary, President Chan Santokhi’s announcement of the “Royalties for Everyone” initiative represents a significant shift in Suriname’s approach to its newfound oil wealth. By directly involving its citizens in the benefits of this resource, the government aims to uplift those impoverished and foster long-term economic stability. With a careful eye on the pitfalls experienced by other oil-rich countries, the establishment of a sovereign wealth fund serves as a proactive measure to ensure sustainable development. The expected influx of funds from projects like that of TotalEnergies underscores a promising future for Suriname’s economy.
Original Source: www.thejakartapost.com
