Abstract

Sovereign Wealth Funds (SWFs) lie at the cutting edge of a tectonic transformation in global business and international law embodying the sweeping changes in the global order. Illustrating the new financial and legal paradigm, SWFs demonstrate the blurring of lines between public actor states and private market actors. Ostensibly entrusted with the advancement of the public good of their respective citizenry, SWFs traditionally invested their vast pools of capital in apolitical, non-controversial, conservative government debt. Starting around 2006–2007, SWFs initiated an aggressive campaign of diversification and commenced allocating their immense investment capital into equity markets, real estate, energy projects, farming and private equity. This significant change led to SWF investment becoming inextricably linked to strategic industries in recipient nations. Simultaneously, apprehension developed in capital recipient nations with respect to potential non-financial motivation of SWF investment and the ...

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