Truman, E. M. (2011) ‘Sovereign Wealth Funds: Is Asia Different ?’

Precept 2 states that successful natural resource management requires government accountability to an informed public. In turn, an informed public requires greater transparency in the natural resource sector. The paper by Truman reviews the international initiatives aimed at ensuring transparency in savings, stabilization and investment funds.

Truman considers the policy challenges that are faced by Sovereign Wealth Funds (SWF) and the critique to which they were and still are subject. In dealing with these challenges, improving transparency and accountability is perceived to be of paramount importance. Hence the Santiago Principles were developed, allowing an assessment of SWF according to a set of standards. Truman compares the rating of 44 SWF according to the Santiago Principles to his own SWF Scoreboard. The paper finds that the Santiago Principles are a good first step for improved transparency and accountability, although not as comprehensive as the SWF Scorecard. Asian SWFs are also considered separately due to their number and size. It is found that these create more anxiety in host countries and as a result are to be held to a higher standard of accountability and transparency; in turn this suggests Asian SWFs ought to promote increased compliance with SWF standards.

 

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