As a result of the oil price plunge, the major oil-exporting countries are facing budget deficits for the first time in years. This column goes through the evidence, suggesting that the low price environment is likely to test the relationship between governments in oil-exporting countries and their sovereign wealth funds, at a time when spending is going up.
Rabah Arezki, Adnan Mazarei, Ananthakrishnan Prasad, 29 November 2015
Kavaljit Singh, 31 October 2011
In 2007 China set up its sovereign wealth fund, the China Investment Corporation, with an initial capital fund of $200 billion. Since then, Asia’s other emerging economic power – India – has been wondering if it should follow. This column argues that such a move is ill-advised and that India has more worthy investment opportunities at home.
Josh Lerner, 12 February 2010
Josh Lerner of Harvard Business School talks to Vox about sovereign wealth funds, which are the focus of a chapter in his new book, Boulevard of Broken Dreams: Why Public Efforts to Boost Entrepreneurship and Venture Capital Have Failed – and What to Do About It. The interview was recorded in London in January 2010.
Javier Santiso, Rolando Avendaño, 03 February 2010
Are sovereign wealth funds substantially different in their investment choices from other types of institutional investor? This column compares the holdings of two groups of sovereign and mutual funds – and finds a few differences. Contrary to popular belief, evidence suggests that sovereign and mutual funds’ investments do not differ when looking at the political profile of targeted countries.
Tao Sun, Heiko Hesse, 30 March 2009
The present financial crisis has placed financial stability at the forefront of policy discussions. At the same time, sovereign wealth funds have become much more significant players over the past two years. This column summarises the results of some recent studies about sovereign wealth funds and their implications for financial stability. Overall, the existing research on SWFs suggests that they can be a stabilising force in global financial markets.
Joshua Aizenman, Reuven Glick, 16 January 2009
This column provides evidence that there is great deal of difference between the governance standards of the economies in which sovereign wealth funds have been established and the standards of the industrial economies in which they are seeking to invest. It also discusses how the expansion of asset holdings of sovereign wealth funds may reduce official reserve holdings.
Nicolas Véron, Lars-Hendrik Röller, 06 December 2008
European security concerns about foreign investment have produced opaque and inconsistent responses by national governments. This column makes the case for establishing a EU authority to address the issue in an open, comprehensive and sustainable manner rather than allowing the proliferation of disparate national regulatory initiatives. The openness of the EU investment environment is at stake.
Kavaljit Singh, 20 November 2008
French President Nicholas Sarkozy has proposed that European nations create sovereign wealth funds to protect national companies from foreign “predators.” This column says that idea is protectionist and without merit. Emerging economies establish sovereign wealth funds to invest foreign reserves or commodity revenue – not to bail out domestic firms and stifle global competition.
Victor Pontines, Ramkishen Rajan, 19 November 2008
Why are emerging Asian economies accumulating massive foreign exchange reserve stocks? Much research has focused on precautionary or export-promoting motives. This column argues that emerging economies are pursuing exchange rate management with a strong bias towards preventing appreciation.
Rick van der Ploeg, Anthony Venables, 02 October 2008
How should developing countries spend an unexpected surge in foreign assistance or natural resource revenues? This column makes the case for establishing a sovereign wealth fund and examines the market imperfections that may constrain such a policy.
Edwin Truman, 14 August 2008
Sovereign wealth funds are a hot topic, but they’re poorly understood. Four popular myths are that sovereign wealth funds are (1) about “them” not “us”, (2) all the same in their opacity, (3) a net benefit to the international financial system, and (4) not like hedge funds. This column explodes those myths and outlines a framework of reciprocal responsibility for sovereign investors and their investment recipients.
Guillermo Calvo, 20 June 2008
Here, one of the world’s leading macroeconomists argues that the explosion of commodity prices is the result of a very real global financial storm associated with excess liquidity in several non-G7 countries and nourished by the low interest rates set by G7 central banks. The commodity price explosion is a harbinger of future inflation.
Helmut Reisen, 05 June 2008
Sovereign wealth funds have raised fears in developed countries, but development economics suggests a number of legitimate motives for such investment vehicles. This column explains why there is no need for suspicion – only level-headed policy responses.
Philipp Hildebrand, 21 January 2008
The rapid growth of sovereign wealth funds risks provoking a protectionist response by industrialised countries. Here is the argument that a voluntary code of conduct could help avert the problem.
Richard Portes, 17 October 2007
Sovereign wealth funds are politically so hot that they competed with the summer's financial crisis for media attention - both politicians and the press have expressed concern about their activities. Not many corporates have complained, however, and some like Barclays and Blackstone have welcomed sovereign wealth fund investment. How are sovereign wealth funds apt to respond?