| The $5 trillion held in sovereign wealth funds (SWFs) worldwide is more than just resource riches and future social services, according to the Massachusetts Institute of Technology’s Shannon Murphy. More and more, it’s also political power. Sovereign wealth funds “provide the ‘carrot’ of sizable, patient capital, and wield a ‘stick’ via their ability to serve as investors of last resort,” Murphy writes.
“This has resulted in sovereign wealth funds becoming, in some ways, a proxy for power/influence at home and abroad. The ability of non-OECD [Organisation for Economic Co-operation and Development] states to leverage SWF resources to earn excess financial return and accrue global influence, facilitate domestic economic development or meet the long term needs of citizens is reorienting relationships.”..............................................Full Article: Source
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