SWFs eye domestic advantages
Sovereign wealth funds are exploiting their overseas investments to contribute to economic development back home. […]
“From an international perspective, SWFs help stabilise global financial markets and from a domestic point of view co-ordinate macroeconomic policy,” according to the Monitor/FEEM report. “The latter probably remains the dominant driver of their own choices.” […]
The need to support the domestic economy has become a significant policy driver for SWFs, according to the Monitor/FEEM report.
“As their domestic markets were hit by the effects of the global recession, SWFs inevitably became more active at home in providing financial support – patriotism proved far more important than presence in foreign markets,” said Vanessa Rossi of Chatham House in an article for the Monitor/FEEM report.
*Back on Course: Sovereign Wealth Fund Activity in 2009