Description
In 2006, Chile teemed with protesters after finance minister Andrés Velasco invested budget surpluses from the nation’s historic copper boom in two Sovereign Wealth Funds. A year later, when prices plummeted and unemployment soared, Chile’s government was once ready to stimulate recovery by drawing on the funds.
State-owned investment vehicles that hold public funds in a variety of assets, Sovereign Wealth Funds enable governments to access an unprecedented degree of wealth. As a result, more countries are searching for to establish them. Having a look at Chile, China, Australia, Singapore, and a large number of other examples, including a comparative analysis of Britain and Norway’s use of oil revenues, Angela Cummine tackles the key ethical questions surrounding their use, including: To whom does the wealth belong? How will have to the funds be managed, invested, and distributed? With sovereign funds—and media attention—continuing to grow, this is a useful look at a hotly debated economic issue.