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Capital Choices

Sectoral Politics and the Variation of Sovereign Wealth

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Sovereign wealth funds (SWFs) are state-controlled capital pools that manage financial and real assets to enhance a nation's wealth. The significant growth of SWFs, now surpassing global private equity and hedge funds combined, particularly in non-OECD countries, has sparked concerns about capitalism's future. However, SWFs are not uniform; their creation varies widely among nations. For instance, while countries like China establish SWFs due to large current account surpluses, others like Switzerland and Germany do not. Conversely, nations without clear macroeconomic reasons, such as Senegal and Turkey, still create SWFs. Furthermore, countries with similar economic conditions, like Kuwait and Qatar or Singapore and Hong Kong, adopt different SWF types. This analysis delves into the formation of SWFs from a comparative political economy perspective, positing that varying state-society structures at the sectoral level drive these differences. Juergen Braunstein emphasizes the early formation phase of SWFs, an area often overlooked due to its political sensitivity and transparency issues. His innovative analytical framework offers valuable insights for business, finance organizations, and policymakers involved in the establishment or planning of SWFs.

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Capital Choices, Juergen Braunstein

Sprache
Erscheinungsdatum
2019
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(Hardcover)
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Titel
Capital Choices
Untertitel
Sectoral Politics and the Variation of Sovereign Wealth
Sprache
Englisch
Erscheinungsdatum
2019
Einband
Hardcover
Seitenzahl
216
ISBN10
047213132X
ISBN13
9780472131327
Reihe
Beschreibung
Sovereign wealth funds (SWFs) are state-controlled capital pools that manage financial and real assets to enhance a nation's wealth. The significant growth of SWFs, now surpassing global private equity and hedge funds combined, particularly in non-OECD countries, has sparked concerns about capitalism's future. However, SWFs are not uniform; their creation varies widely among nations. For instance, while countries like China establish SWFs due to large current account surpluses, others like Switzerland and Germany do not. Conversely, nations without clear macroeconomic reasons, such as Senegal and Turkey, still create SWFs. Furthermore, countries with similar economic conditions, like Kuwait and Qatar or Singapore and Hong Kong, adopt different SWF types. This analysis delves into the formation of SWFs from a comparative political economy perspective, positing that varying state-society structures at the sectoral level drive these differences. Juergen Braunstein emphasizes the early formation phase of SWFs, an area often overlooked due to its political sensitivity and transparency issues. His innovative analytical framework offers valuable insights for business, finance organizations, and policymakers involved in the establishment or planning of SWFs.