Economic and Social Stabilization Fund
The Economic and Social Stabilization Fund (ESSF) is a state-owned fund in Chile aimed at stabilizing the finances of the Central Government in face of potential "abrupt changes in the economic cycle and extraordinary events".[1] It was created in 2007 by the merger of the former Copper Stabilization Fund (Spanish: Fondo de Compensación para los ingresos del Cobre) and of the stabilization resources created by Decreto Ley N° 3.653 of 1981.[1][2][3] The fund is also used yearly to amortize part of the public debt and to add to the Pension Reserve Fund.[1] The fund is subject to the Fiscal Responsibility Law.[1]
The Copper Stabilization Fund was created in 1987 basing it on the incomes of the state-owned copper mining company Codelco.[4] This allowed for more precise annual government budget planning given that copper prices can exhibit strong fluctuations.[5]
In 2019, the fund was ranked fourth out of 64 sovereign wealth funds worldwide, with a score of 92 out of 100, in the Sovereign Wealth Fund Transparency and Accountability Scoreboard published by the Peterson Institute for International Economics.[6]
See also
[edit]References
[edit]- 1 2 3 4 "Economic and Social Stabilization Fund". Ministerio de Hacienda. Retrieved 2025-04-29.
- ↑ "REFUNDE EN UN SOLO FONDO LOS RECURSOS ADICIONALES DE ESTABILIZACION DE LOS INGRESOS FISCALES A QUE SE REFIERE EL DECRETO LEY Nº 3.653, DE 1981, Y LOS DEL FONDO DE COMPENSACION PARA LOS INGRESOS DEL COBRE, CONSTITUIDO CONFORME AL CONVENIO DE PRESTAMO BIRF Nº 2.625 CH, Y FIJA LA NORMATIVA PARA SU OPERACIÓN". bcn.cl (in Spanish). Biblioteca del Congreso Nacional. 2024-09-01. Retrieved 2025-04-29.
- ↑ Fondo de Estabilización Económica y Social (PDF) (Report) (in Spanish). Ministerio de Hacienda. 2023-03-01. Retrieved 2025-04-29.
- ↑ Ceballos & Tilton 2005, p. 295.
- ↑ Ceballos & Tilton 2005, p. 298.
- ↑ Maire, Julien; Mazarei, Adnan; Truman, Edwin M. (February 2021). "Sovereign wealth funds are growing more slowly, and governance issues remain" (PDF). Peterson Institute for International Economics Policy Brief. 21–3. Washington, D.C.: Peterson Institute for International Economics. Retrieved 11 November 2025.
Bibliography
[edit]- Ceballos, Juan Ignacio; Tilton, John (2005). "Análisis del Fondo de Compensación del Cobre Chile". In Lagos, Gustavo (ed.). Minería y desarrollo (in Spanish). Santiago, Chile: Ediciones Universidad Católica de Chile. pp. 295–318. ISBN 956-14-0844-9.