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Economic And Social Stabilization Fund (Chile)

Economic And Social Stabilization Fund (Chile)

What is 'Economic And Social Stabilization Fund - Chile'

The Economic and Social Stabilization Fund is a government-owned investment organization that manages a sovereign wealth fund for the government of Chile. The funds deposited in the ESSF were sourced from surplus revenues from Chile's copper exports. According to the Chilean Ministry of Finance, the ESSF has approximately $11.13 billion in assets under management as of March 2010.

Explaining 'Economic And Social Stabilization Fund - Chile'

The ESSF was established in 2007 with a contribution of $2.58 billion, most of which was from the dissolution of the Copper Stabilization Fund, which the ESSF replaced. The purpose of the ESSF is to stabilize revenues for the government of Chile, allowing the government to finance fiscal deficits without resorting to issuing debt. The ESSF receives deposits from the Chilean government each year where there is a fiscal surplus. The ESSF is managed by the Ministry of Finance, which is assisted by a Financial Committee made up of financial and economic experts.


Economic And Social Stabilization Fund (chile) FAQ

What does a sovereign wealth fund do?

A sovereign wealth fund stabilizes and strengthen the country's ecomony. The primary methods use diversification and the generation of more wealth for future generations.

Does the US have a sovereign wealth fund?

Several US states have their own sovereign wealth funds, but the country does not.

How many sovereign wealth funds are there?

As of October 2020, there are 45 sovereign wealth funds.

Further Reading

Review of the experience with oil stabilization and savings funds in selected countriesReview of the experience with oil stabilization and savings funds in selected countries
papers.ssrn.com [PDF]
… a Macroeconomic Stabilization Fund (MSF) to insulate the budget and the economy from fluctuations … presidential discretion for withdrawals, while earmarking the use of resources to social and investment … 1980s that led to cuts in expenditure and contraction in economic activity …

How effective is resource stabilization fund in a mono-product economy?How effective is resource stabilization fund in a mono-product economy?
journals.sagepub.com [PDF]
… a Macroeconomic Stabilization Fund (MSF) to insulate the budget and the economy from fluctuations … presidential discretion for withdrawals, while earmarking the use of resources to social and investment … 1980s that led to cuts in expenditure and contraction in economic activity …

Sudden stop, financial factors and economic collpase in Latin America: learning from Argentina and ChileSudden stop, financial factors and economic collpase in Latin America: learning from Argentina and Chile
www.nber.org [PDF]
… a Macroeconomic Stabilization Fund (MSF) to insulate the budget and the economy from fluctuations … presidential discretion for withdrawals, while earmarking the use of resources to social and investment … 1980s that led to cuts in expenditure and contraction in economic activity …

Challenges to Macroeconomic Management in Resource-Rich Developing EconomiesChallenges to Macroeconomic Management in Resource-Rich Developing Economies
books.google.com [PDF]
… a Macroeconomic Stabilization Fund (MSF) to insulate the budget and the economy from fluctuations … presidential discretion for withdrawals, while earmarking the use of resources to social and investment … 1980s that led to cuts in expenditure and contraction in economic activity …


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