Citizens’ Wealth: Why (and How) Sovereign Funds Should be Managed by the People for the People

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Description

A wide-ranging analysis of a powerful but controversial new economic tool that has abruptly eclipsed the size of the hedge fund market

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.

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