Sovereign Wealth Fund Investment in Economic Transformation: Toward an Institutional Framework

World Economics Journal, Vol. 18 • No. 1 • January–March 2017

22 Pages Posted: 4 Jun 2017

See all articles by Patrick Schena

Patrick Schena

The Fletcher School, SovereigNET; The Fletcher School, Tufts University

Asim Ali

SovereigNET

Date Written: May 26, 2017

Abstract

The prospect of prolonged lower hydrocarbon and commodity prices has forced many countries to reconsider both fiscal policy and sovereign wealth fund asset allocation to address possible liquidity needs. In order to analyze the diversity and effectiveness of public investment vehicles it is necessary to recognize that a sovereign wealth fund is a genre of state investment. As a type of state investor sovereign wealth funds sit within an institutional continuum that includes many other bodies, such as national development banks. Well-functioning operating and governance models have evolved among large-scale private equity investors and components of these are suited to government application.

Keywords: Sovereign Wealth Funds(SWFs), Sovereign Development Funds (SDFs), Strategic Investment Funds (SIFs), Public Finance, Institutional Development, Fiscal Management, Macroeconomics

JEL Classification: F63, G15, G18, N20, O11

Suggested Citation

Schena, Patrick and Ali, Asim, Sovereign Wealth Fund Investment in Economic Transformation: Toward an Institutional Framework (May 26, 2017). World Economics Journal, Vol. 18 • No. 1 • January–March 2017. Available at SSRN: https://ssrn.com/abstract=2979528

Patrick Schena (Contact Author)

The Fletcher School, SovereigNET ( email )

Medford, MA 02155
United States

The Fletcher School, Tufts University ( email )

Medford, MA 02155
United States

Asim Ali

SovereigNET ( email )

Medford, MA 02155
United States

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