The SWFS: Changing Relations with Stakeholders

Posted: 19 Aug 2011 Last revised: 9 Nov 2011

See all articles by Mukul G. Asher

Mukul G. Asher

National University of Singapore - Lee Kuan Yew School of Public Policy

Date Written: 2011

Abstract

The author considers SWFs from the perspective of their changing relations with internal and external stakeholders, and the importance of transparency, accountability and better communication. It discusses how the management of stakeholder relations has become central to the trust in – and legitimacy of – the funds, and helps to reduce uncertainty over their behavior and motives, and the impetus for SWFs to evolve their relations with both sets of stakeholders, and a range of initiatives used to strengthen these relations.

The author also examines the benefits and drawbacks of implementing the Santiago Principles on accountability and transparency, and shows how multilateral institutions such as the IMF can encourage better communication and understanding between the SWF sponsoring and recipient countries. The chapter argues that the principles should be implemented in a consistent way so that accountability and transparency have more of a chance to be integrated into operating procedures.

Keywords: SWF, sovereign wealth funds, sovereign asset management stakeholders, global financial and capital markets, Santiago Principles, SWF sponsoring and recipient countries

JEL Classification: A10, A11, A12, A13

Suggested Citation

Asher, Mukul G., The SWFS: Changing Relations with Stakeholders (2011). Sovereign Asset Management, Forthcoming; Lee Kuan Yew School of Public Policy Research Paper No. PP11-17 . Available at SSRN: https://ssrn.com/abstract=1912408

Mukul G. Asher (Contact Author)

National University of Singapore - Lee Kuan Yew School of Public Policy ( email )

Singapore 117591
Singapore
(65) 6778 1020 (Fax)

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