| There is one major difference between the oil rich Gulf states that first created sovereign wealth funds and the manufacturing focused east Asian states that followed in their foot steps. When an oil exporting country takes oil out of the ground, sells it, and deposits the proceeds in their sovereign wealth fund, there is no net change in wealth.
Just because the oil is in the ground rather than sold with money in the bank to show for it, does not make that country any more or less wealthy. In fact, they would probably become more wealthy by keeping oil in the ground rather than selling it now...............................................Full Article: Source
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