Innovations in Sovereign Wealth Funds for National Development
6 Pages Posted: 1 Aug 2012
Date Written: July 27, 2012
What is it that makes a successful sovereign wealth fund? I outline three primary factors. First, a sovereign wealth fund needs a predictable and dedicated capital source. Second, few sovereign wealth funds have laid out clear and defined rules for withdrawal of fund capital. Third, a sovereign wealth funds demand the highest degree of independence possible while remaining technically a state linked entity.
Keywords: sovereign wealth funds, public savings, growth, business cycle, political economics
JEL Classification: E6, F3
Suggested Citation: Suggested Citation