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Sovereign Wealth Funds: Is Asia Different?

Author

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  • Edwin M. Truman

    (Peterson Institute for International Economics)

Abstract

Sovereign wealth funds (SWFs) have become a prominent feature of the international financial landscape. They are sufficiently diverse in their origins, structures, and objectives that generalizations are perilous. However, legitimate concerns have been raised in home and host countries about the management, behavior, and interactions of these funds. Many of those concerns can be addressed via increased accountability and transparency. The Santiago Principles are a good start in doing so, but Edwin M. Truman's SWF scoreboard points to areas where these principles can be improved. Meanwhile, SWF compliance must be further increased. At the same time, the Organization for Economic Cooperation and Development (OECD) effort to address concerns from the host-country side has not resulted in the erection of new barriers to that form of cross-border investment, but the OECD failed to reverse the creeping financial protectionism of the past decade. Because of their size and the source of their funding, some Asian funds are different. As a result, they will be held to a higher standard of accountability and transparency even as their government owners press for more openness to cross-border investment.

Suggested Citation

  • Edwin M. Truman, 2011. "Sovereign Wealth Funds: Is Asia Different?," Working Paper Series WP11-12, Peterson Institute for International Economics.
    • Handle: RePEc:iie:wpaper:wp11-12
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    File URL: https://www.piie.com/publications/working-papers/sovereign-wealth-funds-asia-different
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    References listed on IDEAS

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    1. Adrian Blundell-Wignall & Yu-Wei Hu & Juan Yermo, 2008. "Sovereign Wealth and Pension Fund Issues," OECD Working Papers on Insurance and Private Pensions 14, OECD Publishing.
    2. Edwin M. Truman, 2007. "Sovereign Wealth Funds: The Need for Greater Transparency and Accountability," Policy Briefs PB07-6, Peterson Institute for International Economics.
    3. Edwin M. Truman, 2010. "Sovereign Wealth Funds: Threat or Salvation?," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4983, April.
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    Citations

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    Cited by:

    1. Joseph E. Gagnon, 2013. "The Elephant Hiding in the Room: Currency Intervention and Trade Imbalances," Working Paper Series WP13-2, Peterson Institute for International Economics.
    2. Mia Overall, 2013. "Responsible Business and Sustainable Investment in the Natural Resources Sector in Asia and the Pacific," Studies in Trade and Investment 79, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    3. Woochan Kim, 2012. "Korea investment corporation: its origin and evolution," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 17(2), pages 208-235.
    4. Gelb, Alan & Tordo, Silvana & Halland, Havard & Arfaa, Noora & Smith, Gregory, 2014. "Sovereign wealth funds and long-term development finance : risks and opportunities," Policy Research Working Paper Series 6776, The World Bank.
    5. Joseph E. Gagnon, 2012. "Combating Widespread Currency Manipulation," Policy Briefs PB12-19, Peterson Institute for International Economics.
    6. Mehrpouya, Afshin, 2015. "Instituting a transnational accountability regime: The case of Sovereign Wealth Funds and “GAPP”," Accounting, Organizations and Society, Elsevier, vol. 44(C), pages 15-36.
    7. Allie Bagnall & Edwin M. Truman, 2011. "IFSWF Report on Compliance with the Santiago Principles: Admirable but Flawed Transparency," Policy Briefs PB11-14, Peterson Institute for International Economics.
    8. Gelb, Alan & Tordo, Silvana & Halland, Havard, 2014. "Sovereign Wealth Funds and Domestic Investment in Resource-Rich Countries: Love Me, or Love Me Not?," World Bank - Economic Premise, The World Bank, issue 133, pages 1-5, January.
    9. Joseph Gagnon, 2012. "Global imbalances and foreign asset expansion by developing-economy central banks," BIS Papers chapters, in: Bank for International Settlements (ed.), Are central bank balance sheets in Asia too large?, volume 66, pages 168-185, Bank for International Settlements.
    10. International Monetary Fund, 2013. "Iraq: Selected Issues," IMF Staff Country Reports 2013/218, International Monetary Fund.
    11. Xu Yi-chong, 2012. "Sovereign wealth funds: the good, the bad or the ugly?," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 17(2), pages 193-207.
    12. Shashank Priya & Chittaranjan Satapathy, 2014. "Enhancing Regional Connectivity: Towards a Regional Arrangement for the Facilitation of Cross-border Paperless Trade," Studies in Trade and Investment 78, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    13. Marco Mele, 2014. "On Asset Allocation’ Studies for Sovereign Wealth Funds," International Journal of Financial Economics, Research Academy of Social Sciences, vol. 2(4), pages 169-180.
    14. Joseph E. Gagnon & C. Fred Bergsten, 2012. "Currency Manipulation, the US Economy, and the Global Economic Order," Policy Briefs PB12-25, Peterson Institute for International Economics.
    15. Marco Mele, 2014. "Open-End Fund Performance Persistence: A Study on KC Libra Fund," International Journal of Empirical Finance, Research Academy of Social Sciences, vol. 3(1), pages 1-8.

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    More about this item

    Keywords

    Asia; international investment; OECD; Santiago Principles; sovereign wealth funds;
    All these keywords.

    JEL classification:

    • F3 - International Economics - - International Finance
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission

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