Pre-salt oil, royalties, and sovereign and social funds in Brazil: Challenges and social control
Published online on November 08, 2013
Abstract
The objective of this study is to analyze the social impact of the use of royalties and special participation, and sovereign and social funds, in the context of the pre-salt oil reserves in Brazil. With the pre-salt discoveries, the royalty values will grow considerably, justifying academic efforts to ensure the socially equitable application of this wealth. There has been enormous growth in the revenue from royalties in oil-producing municipalities; however, this has had little or no impact on social development, social justice, and human rights. It is concluded that oil, and resources derived from oil, are assets of the Union, requiring adequate social control.