Notes on Inequality | Direct Cash Transfer (Alaska).
Sharing Wealth Directly
Some models go a step further. In Alaska, a portion of oil revenue is distributed directly to citizens as an annual cash dividend. This creates a visible link between natural resources and individual benefits.
Alaska created a sovereign wealth fund constitutionally, called the Alaska Permanent Fund(APF) in 1976 which is managed by state-owned corporation, the Alaska Permanent Fund Corporation(APFC). The purpose was to pay out the Permanent Fund Dividend) (PFD).
Each year, the fund’s earnings are managed keeping in mind the inflation-proofing, operating expenses and based on that the dividend payout.
In the Norway Model, wealth is invested in a sovereign fund and benefits come indirectly via public services and welfare – redistribution through healthcare, education and pensions. But, here in Alaska Model, it is a direct benefit as cash goes to citizens’ hands.
So, sometimes, the simplest way to share wealth is to give it directly.
Part of a 4-post series on resource, wealth & inequality.
