Of course the UK has a far larger population, so it would be worth far less per capita. It's sobering to remember that Norway started this fund only in 1990. The UK mooted but cabinet ultimately rejected a North Sea Oil fund on similar lines in 1975. It was suggested by Tony Benn while he was Energy Minister. All that did materialise was the British National Oil Corporation (later Britoil having been privatised by Thatcher, now BP) as operator.
The UK was more or less on it's knees in 1975, I think that without North Sea Oil there would be very little chance that it could have build the services economy and infrastructure it did in the 80's and 90's. I think that you also give our politicians too much credit in terms of managing a fund; remember that the UK was the biggest recipient of marshall aid after the war, and it spent it on patrolling an empire that it was clearly about to lose and subsequently lost. I think that politicians of both parties would have been very likely to raid any fund and use it for vanity projects.
As was most of the western world, recovering from the oil crisis of 73, and experiencing chaos as a result through the rest of the decade. Hardly unique to the UK.
UK was largest recipient of Marshall aid for having the most need along with France only slightly behind. Being used as you say for maintaining world power status, and into the general treasury fund. We spent less on infrastructure during Marshall aid than without! They pissed that away just like was done with all oil revenues.
Considering the vast majority of oil revenues went on empty tax cuts and benefit spending through Tory created recessions, I'm not sure we'd have noticed the difference. 1 or 2p off income tax barely registers. I know I noticed none of Lawson's tiny bribes. At all. :p
The politicians would not, and should not be managing it being better served as some sort of apolitical hands off trust. I don't think politicians manage Norway's fund. Now there is little doubt that it would not have survived the privatisation and asset stripping of the eighties on unscathed, but, like the NHS there's no reason to suppose it would have been destroyed. The Tories debated but chose not to re-privatise the NHS in 51. Thatcher had a selection of industries that were felt were beyond the pale that were subsequently privatised by later administrations. Created in 75 might have been a bit late for achieving adequate perception in the public consciousness so who knows.
Still, it remains one of the very many great missed British opportunities that could easily have been a couple of trillion or more by now. 15 years of additional contributions and growth. There's many nations have sovereign wealth funds now, we easily could have too.
Same thing in Australia, the wealth coming from the resources boom has been and is being given to a few rich people, not the general public (who are having social services slashed regularly)
Yes this makes me very sad too. If you add the natural gas, iron ore, gold, etc we should be sitting on enough to run the country indefinitely. Instead the government is crying poor slashing services and selling off public assets.
We have also managed to completely hollow out the economy - there is nothing really left as all capital has flowed to the most profitable sectors (house building and resources) encouraged by public policy.
Compare Australian wages to the rest of the world. If you go on vacation to other places you see that Australians make more than people from other industrialized nations. You don't see it because your plumber wants to participate, too.
How is that relevant? Australian wages are high because of a long period of unionised action demanding better wages and working conditions in the 20th century. It's tangential to having a lot of natural resources.
Norwegian wages are good too, Venezuelan and Saudi wages are terrible.
We squandered all our mineral wealth on nonsense, have huge respect for what the Norwegians have achieved with their fund.
Yes, most capitalist countries decided to help the rich and are now singing the blues with their social services being depleted. I wonder if the billionaires of the world will do anything to help workers (rhetorical question, of course they will see this as just another opportunity to make more money).
