A Fivefold Surge Since 2008
These state-owned vehicles of national wealth are now amongst the titans of international finance, with now more than $16 trillion in total assets, compared with perhaps $3 trillion in 2008, and counting on advantages (speed, national diversification, and a long-term horizon) that could, if used wisely, benefit today’s citizens as much as the next generation.
Mandates Are Outgrowing Their Legal Foundations
Nevertheless, the role of SWFs (Sovereign Wealth Funds) has changed significantly. At the current stage, their use extends far beyond the needs of the state’s budgetary and savings functions. They play an increasingly important role in the development of infrastructure, social programs, and industrial policy. The tendency for their growth is due to the deepening global confrontation and the need to expand the scope of economic independence, secure strategic assets, and accumulate capital for economic growth.
