Sovereign Wealth Fund Issues and the National Fund(s) of Kazakhstan

Oil-rich countries have oftentimes been confronted with the challenge of diversifying their economies away from oil dependence given the exhaustible nature of these fossil fuels. Investing in sovereign wealth funds has been one of the most ubiquitous ways of preparing for the post-oil period. Investing in sovereign wealth funds rather than directly injecting the oil revenues in the economy not only precludes the outbreak of the Dutch Disease (which is known for giving rise to an exchange rate appreciation, crowding out non-oil industries and keeping the economy reliant on oil), but it also saves for future generations. Yet, in the case of Azerbaijan, the Sovereign Wealth Fund of Azerbaijan (SOFAZ), founded in 1999, has only increased this reliance on oil. Using the rentier states theoretical framework, this paper will argue that the direct control over SOFAZ exercised by the president and the lack of consultation with the NGOs have made corruption easier, making the task of economic diversification more difficult. This has been possible because through corruption the president has often resorted to oil money to buy peace rather than invest it in economic diversification. As a result, since the foundation of SOFAZ, the country is more reliant, not less, on oil. Full text available at: https://doi.org/10.22215/rera.v8i1.223

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Sovereign wealth fund investment and the return-to-risk performance of target firms

Journal of Financial Intermediation ◽

10.1016/j.jfi.2011.10.001 ◽

2012 ◽

Vol 21 (2) ◽

pp. 315-340 ◽

Cited By ~ 50

Author(s):

April M. Knill ◽

Bong Soo Lee ◽

Nathan Mauck

Keyword(s):

Sovereign Wealth Fund ◽

Target Firms ◽

Fund Investment

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China's Sovereign Wealth Fund Investments in overseas energy: The energy security perspective

Energy Policy ◽

10.1016/j.enpol.2013.09.056 ◽

2014 ◽

Vol 65 ◽

pp. 654-661 ◽

Cited By ~ 23

Author(s):

Xiaolei Sun ◽

Jianping Li ◽

Yongfeng Wang ◽

Woodrow W. Clark

Keyword(s):

Energy Security ◽

Sovereign Wealth Fund

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ANGOLA: Sovereign Wealth Fund

Africa Research Bulletin Economic Financial and Technical Series ◽

10.1111/j.1467-6346.2013.05245.x ◽

2013 ◽

Vol 50 (6) ◽

pp. 20020B-20020C

Keyword(s):

Sovereign Wealth Fund

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Indonesia’s new investment ministry faces headwinds

Emerald Expert Briefings ◽

10.1108/oxan-db261415 ◽

2021 ◽

Keyword(s):

Central Bank ◽

Foreign Investment ◽

Short Term ◽

Sovereign Wealth Fund ◽

Content Type ◽

Speed Up ◽

The Government ◽

Roll Out

Significance The government hopes greater domestic and foreign investment can help turn around the pandemic-hit economy. The governor of Bank Indonesia (BI), the central bank, last week said GDP should grow by 4.6% in 2021, compared with last year’s 2.1% contraction. Impacts Indonesia will count on private vaccination, whereby companies buy state-procured jabs for their staff, to help speed up its roll-out. The Indonesia Investment Authority, a new sovereign wealth fund, will prioritise attracting more investment into the infrastructure sector. Singapore will continue to be Indonesia’s largest source of FDI in the short term.

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