Article · Wikipedia archive · Last revised Jun 2, 2026

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". It was created in 2007 by the merger of the former Copper Stabilization Fund and of the stabilization resources created by Decreto Ley N° 3.653 of 1981. The fund is also used yearly to amortize part of the public debt and to add to the Pension Reserve Fund. The fund is subject to the Fiscal Responsibility Law.

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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 1981.123 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

See also

References

References

  1. "Economic and Social Stabilization Fund". Ministerio de Hacienda. Retrieved 2025-04-29.
  2. "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.
  3. Fondo de Estabilización Económica y Social (PDF) (Report) (in Spanish). Ministerio de Hacienda. 2023-03-01. Retrieved 2025-04-29.
  4. Ceballos & Tilton 2005, p. 295.
  5. Ceballos & Tilton 2005, p. 298.
  6. 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

Bibliography