Sovereign Wealth Funds

Legitimacy, Governance, and Global Power

Gordon L. Clark, Adam D. Dixon, Ashby H.B. Monk

• Publisher: Princeton University Press
• Year: 2013
• Print ISBN:
  9780691142296
• eBook ISBN:
  9781400846511
• Topic: Economics
• Subtopic: Finance
• Index: Economics

The worldwide rise of sovereign wealth funds is emblematic of the ongoing transformation of nation-state economic prospects. Sovereign Wealth Funds maps the global footprints of these financial institutions, examining their governance and investment management, and issues of domestic and international legitimacy. Through a variety of case studies--from the China Investment Corporation to the funds of several Gulf states--the authors show that the forces propelling the adoption and development of sovereign wealth funds vary by country. The authors also show that many of these investment institutions have identifiable commonalities of form and function that match the core institutions of Western financial markets.


The authors suggest that the international legitimacy of sovereign wealth funds is based on the degree to which their design and governance match Western expectations about investment management. Undercutting commonplace assumptions about the emerging world of the twenty-first century, the authors demonstrate that even small countries with large and globally oriented sovereign wealth funds are likely to play a significant role in international relations.



Sovereign Wealth Funds considers how such financial organizations have altered not only the face of finance, but also the international geopolitical landscape.

Table of contents

• Cover Page
• Title Page
• Copyright Page
• Dedication Page
• Contents
• List of Figures and Tables
• Preface
• Acknowledgments
• 1. Introduction
• 2. The Rise of Sovereign Wealth Funds
• 3. Rethinking the “Sovereign” in Sovereign Wealth Funds
• 4. The Virtues of Long-Term Commitment: Australia’s Future Fund
• 5. The Ethics of Global Investment: Norway’s Government Pension Fund
• 6. Insurer of Last Resort: Singapore’s Government Investment Corporation
• 7. Legitimacy, Trade, and Global Imbalances: The China Investment Corporation
• 8. Modernity, Imitation, and Performance: The Gulf States’ Funds
• 9. Conclusion: Form and Function in the Twenty-First Century
• Appendix: Scoping Best Practice
• Notes
• References
• Index