Purpose, formation and management of wealth funds
Misiūnas, Petras Algimantas
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In the face of the current economic crisis, some countries made use of their advantage of having state reserves or national wealth funds, which helped them to buffer the economic recession. Finance from the funds has been allocated for the stabilization of the financial situation, rescue of banks, or solving acute social problems. The article shows that such funds and reserves have been available not only in economically powerful countries, but also in EU newcomers, the best example being Estonia. Regrettably, Lithuania, in the period of rapid economic growth, was not building up such reserves and directed the high income received—mainly from privatization and the development of export—towards solving current (often populist) problems. Thus, the article analyzes the purpose of such funds, the peculiarity of their formation and management issues.
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