Rare Earth Metals and Sovereign Wealth in Portugal: A Basis for Preserving Common Wealth and Establishing Unconditional Basic Income

Abstract

New natural assets such as lithium discovered in Portugal have the potential to supplement the financing of an Unconditional Basic Income (UBI) and a Sovereign Wealth Fund (SWF).  Rare earth metals can provide both windfall profits, as well as ecological devastation, for both current and future generations of citizens depending on how the resource is managed.  Many natural and social assets that can be partially converted into public goods such as a UBI are considered here. Lithium mining does not need to be pursued in Portugal, but if it proceeds, it is just one of a myriad of public assets that must benefit members of the community as a first priority.  UBI paid at a high level is affordable and feasible in Portugal, without cuts to social services or contributory social insurance programmes.  Paired with a SWF to benefit future citizens and invest locally, distributive justice can be optimally achieved.