The Political Economy of Sovereign Wealth Funds (International Political Economy Series)

This book examines the origin, nature, the portfolio, organizational structure and operation of the seven largest SWFs from the perspective of the holding countries. Uniquely it tackles the issues from the perspectives of those non-OECD countries whose access to funds creates the most concern. Sovereign wealth funds (SWFs) have generated controversy because of their size, the speed of their growth, their ownership, their investment decisions and, most importantly, what they stand for in a changing global economy -- a new group of investors controlled, managed and backed by states. The debate initially tilted towards those countries receiving the most investment: investment from SWFs was threatening the national interest by hollowing out their economies and flagship companies, taking over resources and controlling their infrastructure. Politicians in some OECD countries even managed to create an atmosphere that SWFs were the 'Trojan horse' of non-democratic countries, undermining their political and economic systems and stealing their national wealth. This book provides a counter-balance: a comparative study of the seven largest SWF-holding countries primarily from a domestic perspective. In the volume, several contributors conclude that the creation and operation of these SWFs would appear to be driven more by domestic politics than external considerations. This calls for a radical re-examination of the impact of the SWFs from non-OECD countries, as well as the reaction and response to them by the United States and EU/OECD Sovereign wealth funds (SWFs) have generated controversy because of their size, the speed of their growth, their ownership, their investment decisions and, most importantly, what they stand for in a changing global economy 6 a new group of investors controlled, managed and backed by states. The debate initially tilted towards those countries receiving the most investment: investment from SWFs was threatening the national interest by hollowing out their economies and flagship companies, taking over resources and controlling their infrastructure. Politicians in some OECD countries even managed to create an atmosphere that SWFs were the 'Trojan horse' of non-democratic countries, undermining their political and economic systems and stealing their national wealth. This book provides a counter-balance: a comparative study of the seven largest SWF-holding countries primarily from a domestic perspective. In the volume, several contributors conclude that the creation and operation of these SWFs would appear to be driven more by domestic politics than external considerations. This calls for a radical re-examination of the impact of the SWFs from non-OECD countries, as well as the reaction and response to them by the United States and EU/OECD Front Matter....Pages i-xvi The Political Economy of Sovereign Wealth Funds....Pages 1-25 Contributing to a Harmonious Society: China’s Sovereign Wealth Fund....Pages 26-46 Between Principles and Politics: The Pragmatic Practice of Singapore’s Sovereign Wealth Funds....Pages 47-71 Kuwait Investment Authority – An Assessment....Pages 72-87 Sovereign Wealth Funds in the United Arab Emirates....Pages 88-112 Russia’s SWFs: Controlled by a Domestic Agenda....Pages 113-131 Some Macroeconomic Implications of the Future Fund....Pages 132-142 The Political Economy of Australia’s Future Fund – The Political Dimension....Pages 143-156 Aboriginal Investment Funds in Australia....Pages 157-176 Norway – The Accidental Role Model....Pages 177-201 Nationalism or Capitalism? Sovereign Wealth Funds of Non-OECD Countries....Pages 202-227 The USA’s Policy on Sovereign Wealth Funds’ Investments....Pages 228-244 Global Disequilibria....Pages 245-267 Back Matter....Pages 268-272