In the past, Japan has shied away from putting some of its $1 trillion-plus foreign reserves into a sovereign wealth fund. Its devastating earthquake and tsunami may prove a turning point in the debate as such a fund would help meet huge reconstruction costs.
Japan will need multiple approaches to fund reconstruction, which might cost as much as $300 billion. Having a sovereign wealth fund (SWF) that makes long-term investments in the country’s battered northeast coast would give Japan another tool for the job……………………………………….Full Article: Source