Dialogue board member Peter McPherson wrote an opinion article proposing a transparent oil-dividend system to empower Venezuelans, stabilize the economy, and restore trust without costing U.S. taxpayers.
OPINION ARTICLE:
President Trump has an opportunity to help stabilize Venezuela at no cost to Americans by avoiding a mistake from postinvasion Iraq.
In 2003, a few months after the invasion, the Coalition Provisional Authority of Iraq—of which I was director of economic policy—persuaded Iraq’s Governing Council to give some of the country’s oil money, in equal amounts regularly paid, to all citizens living in Iraq, once total oil production had increased enough.
Giving Iraqis a stake in their nation’s well-being could have bolstered the country’s stability and economic strength. Doing so in a transparent trust fund—as Alaska has done to pay its residents an oil dividend since 1982—would have strengthened accountability and democracy by allowing citizens to know what was happening to their assets. Unfortunately, the Defense Department didn’t approve, and our initiative died.
But it could be born again in Venezuela—to its people’s benefit and Washington’s credit. Giving Venezuelans equal dividends from their country’s oil profits would put immediate cash in their pockets to buy food and medicine and to start rebuilding their lives. Long term, it would help them shift from vassals of a corrupt regime to owners of their own future, a future that could bring back Venezuelans living abroad. A fund with clear rules, independent oversight and public reporting would have the additional benefit of preventing old Maduro cronies from looting the country’s wealth behind Mr. Trump’s back.
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