State Capitalism: The Rise of Sovereign Wealth Funds


Journal of Management Research

ISSN: 0972-5814 Online ISSN: 0974-455X

State Capitalism: The Rise of Sovereign Wealth Funds


Gerard Lyons


Abstract

Sovereign Wealth Funds (SWFs) have existed since 1953 and are here to stay. Their size and influence is set to grow. Already valued around $2.2 trillion, on current trends they could even reach $13.4 trillion in a decade. These government controlled funds are expected to take bigger financial stakes in equity and bond markets across emerging economies; to feed more money into alternative investments such as hedge funds and private equity; to boost strategic links with countries that have not shared fully in globalisation or which have been shunned by the West; and to take more strategic stakes in sensitive areas within developed countries. This study analyzes SWFs, detailing the largest 22, what drives them and their likely future impact.


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