23.07.2015 - Hey Puerto Rico: You Need Money for a Sovereign Wealth Fund
Late last week, Reuters reported that Puerto Rico’s economic development minister, Alberto Bacó, is seeking to create a new “sovereign fund” to pay for incentives for companies to invest in the island. He claims that the fund would be created out of “concessions from creditors,” and would be used to spur development and job growth on the island. Sovereign wealth funds are a well-explored and understood tool in public finance. Put simply, they act like an endowment fund for the nation, to prevent politicians from spending revenues from natural resources on current citizens, preserving the value of the nation’s assets for future generations...............................................Full Article: Source
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