Many countries have set up sovereign wealth funds (SWFs) as vehicles for public saving and wealth management. The majority of SWFs are in resource-exporting countries; frequent objectives are macroeconomic and fiscal stabilisation, inter-temporal transfer of wealth, and national development. Some resource funds hold assets equivalent to several multiples of GDP, but many funds are relatively small. The evidence shows that the design and operation of a SWF can help or encumber economic management and wealth preservation.
Lecturer in Economics at Queen's University Management School