Economic and Social Stabilization Fund
The Economic and Social Stabilization Fund (ESSF) is a state-owned fund in Chile aimed at stabilizing the finances of the Central Government in face of potential "abrupt changes in the economic cycle and extraordinary events".[1] It was created in 2007 by the merger of the former Copper Stabilization Fund (Spanish: Fondo de Compensación para los ingresos del Cobre) and of the stabilization resources created by Decreto Ley N° 3.653 of 1981.[1][2][3] The fund is also used yearly to amortize part of the public debt and to add to the Pension Reserve Fund.[1] The fund is subject to the Fiscal Responsibility Law.[1]
The Copper Stabilization Fund was created in 1987 basing it on the incomes of the state-owned copper mining company Codelco.[4] This allowed for more precise annual government budget planning given that copper prices can exhibit strong fluctuations.[5]
In 2019, the fund was ranked fourth out of 64 sovereign wealth funds worldwide, with a score of 92 out of 100, in the Sovereign Wealth Fund Transparency and Accountability Scoreboard published by the Peterson Institute for International Economics.[6]
See also
[edit | edit source]References
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- ^ Ceballos & Tilton 2005, p. 295.
- ^ Ceballos & Tilton 2005, p. 298.
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Bibliography
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