Natural Resource Revenue Sharing Schemes (Trust Funds) in International Law

Natural resources trust funds have been employed in the developed world since the 1970s in order to achieve a fair allocation of revenues and promote social growth. This model has been applied recently in developing economies, however lacking transparency and democratic oversight. As a result of increased public spending and depletion of the funds' assets, instead of economic growth, Dutch disease set in when oil prices fell. The World Bank-inspired Chad trust fund is the only of its kind with some external oversight and a contractual obligation by the recipient state to use the fund's earnings for social development. The idea is commendable, but implementation has been slack and if this model is to work in the future the Bank must condition similar loans to full external oversight, otherwise the whole operation will remain a farce.