Review Essay: Taking a Step Toward a Law for Sovereign Wealth Funds
Consortium for Peace Ethics Working Paper No. 2012-9/1
17 Pages Posted: 9 Sep 2012 Last revised: 3 Oct 2012
Date Written: September 7, 2012
In The Law of Sovereign Wealth Funds. Fabio Bassan has taken on a very great challenge. He would provide a legal structure for sovereign wealth fund regulation, and simultaneously, he would interrogate the consequences of the sovereign character of projections of private power between states. But the world he describes is both unified by the logic of globalization. On the one side is the state system, grounded in principles of sovereignty and of the fundamental distinction between the state and everything else, On the other is the emerging system of societally constituted functionally distinct governance organs, grounded in principles of free movement of capital and investment. When they collide only fracture is possible. The more these forces work toward harmonization, the more relentlessly they illuminate the resulting fracture of governance. That is perhaps the greatest insight of Bassan’s masterful effort to organize the law of SWFs. This essay considers that effort.
Keywords: sovereign wealth fund, Santiago Principles, Golden Shares
JEL Classification: G18, K29, P45, E44, G15
Suggested Citation: Suggested Citation