Jason Clemens: B.C. Prosperity Fund Good Idea If Properly Designed

Jason Clemens: B.C. Prosperity Fund Good Idea If Properly Designed.


British Columbia is between Alaska on the west and Alberta on the right. All three have funds that are linked to royalties from natural resources. In the words of Jason Clemens,

Thankfully there are lessons to be learned, and avoided, from our neighbours. Specifically, Alberta provides stark lessons on what not to do when establishing such a fund while our other neighbour, Alaska, provides an equally plain positive lesson.

In short,

1. Contributions to the fund must be mandatory by law (Constitution, no less). Politicians given discretionary power will always find something else that is more urgent.
2. Withdrawal from the fund must be restricted by law to dividend payments, as in the Alaska Permanent Fund. Politicians given discretionary power to dip into the fund will soon empty it.