Back in August 2015, while still trailing the NDP in some polls, Justin Trudeau pulled off an impressive political feint. Having committed himself to a balanced budget just a few
The state of Norway has part ownership of their country’s oil resource wealth, so they’re getting not just tax revenue but also a direct portion of the profits to invest into their actual Sovereign Wealth Fund (which directly benefits citizens themselves, and which reinvests the funds around the world but never in Norway itself, to avoid domestic conflicts of interest). What he’s doing really is the opposite of Norway’s incredibly successful fund, turning to citizens to bolster the revenue of already profitable companies. It’s not like the promised return is any better than a stock investment.
Again, we don’t know the terms. I could very easily see something like government taking a 25% stake in an LNG refinery/pipeline in return for a direct share of the profits with which to invest. Or, simply using those profits as the investment.
The difference between this and regular investment is that with government as a partner, the private partners have less worry of a future government cancelling the project, which makes it a much more appealing investment.
The state of Norway has part ownership of their country’s oil resource wealth, so they’re getting not just tax revenue but also a direct portion of the profits to invest into their actual Sovereign Wealth Fund (which directly benefits citizens themselves, and which reinvests the funds around the world but never in Norway itself, to avoid domestic conflicts of interest). What he’s doing really is the opposite of Norway’s incredibly successful fund, turning to citizens to bolster the revenue of already profitable companies. It’s not like the promised return is any better than a stock investment.
Again, we don’t know the terms. I could very easily see something like government taking a 25% stake in an LNG refinery/pipeline in return for a direct share of the profits with which to invest. Or, simply using those profits as the investment.
The difference between this and regular investment is that with government as a partner, the private partners have less worry of a future government cancelling the project, which makes it a much more appealing investment.