Citizen funds and Dutch Disease in developing countries

Are Alaska-style citizen revenue distribution funds the solution to the resource curse in developing countries as their proponents conjecture? Unfortunately it appears not. First, it is questionable whether developing countries have the institutional capacity to implement and operate such funds successfully. Second, citizen funds are unlikely to have any substantial impact on governance and their macroeconomic effects are uncertain. Finally, as a comparative case study of the three natural resource-intensive economies that successfully steered clear of excessive real appreciation and crowding out of the non-minerals tradables sector—Botswana, Indonesia and Norway—shows, citizen funds are likely to carry detrimental indirect effects on the ability of governments to surmount the Dutch Disease.