Investor Presentaiton

Real assets FISCAL INSTABILITY ad e.g. acquisition of foreign companies, technology, infrastructure Public secto Options for resource revenue spending Investment MISJUDGING DURATION OF COMMODITY BOOM ELITE CAPTURE General capabilitie ific ABSORPTIVE CAPACITY es e.g. Infrastructure, human capital, governance capabilities for investment efficiency estme ote the non Source tradable sector Resource rents Consumption Financial assets Public spen FISCAL INSTABILITY POPULISM e.g. recurrent governme expenditures Domestically e.g. KWAN fund in Malaysia; Fonds de régulation des recettes in Algeria Private sector Abroad Unconditional transfer e.g. citizen dividend schemes in Alaska or lowered taxes (MENA region and GCC countries) Conditional transfer e.g. consumption subsidies, transfers for specific purposes eneral WASTEFUL ding or credit Targeted Conditional credit upon certain activities (e.g. non resource tradable sector) Safe assets Low-risk assets for savings purposes, e.g. bonds (as pursued by Botswana's Pula Fund, Chile's ESSF) High yielding assets Investments in strategic assets to generate high returns. (e.g. Qatar Investment Authority, Norwegian Pension Fund) Neoclassical/Standard policy advice/ Permanent Income hypothesis Emphasis on fiscal stabilisation to mitigate the effect of commodity price vulnerability (e.g. Rainy day funds') Living like a pensioner (e.g. Norway or Qatar)

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