Skip to main content Accessibility help
×
×
Home

Modernity, Imitation, and Performance: Sovereign Funds in the Gulf

  • Gordon L. Clark (a1) and Ashby Monk (a2)

Abstract

Whereas debate about sovereign wealth funds (SWFs) often focuses upon the global significance of their investment strategies, these institutions are also emblematic of the new global order of financial capitalism. SWFs are a mechanism for states to advance their interests through global financial markets and are a switch point for the translation of resource assets into financial assets in global markets. Yet, realising the promise of SWFs is not easy. The form and functions of these institutions are typically conceived in Western terms, so the necessary infrastructure for their effective performance may not exist in non-Western jurisdictions. Nonetheless, these funds have grown increasingly popular throughout the world. As such, this paper examines the process of SWF adoption in non-Western jurisdictions, and, in particular, SWFs' recent rise in popularity amongst the Gulf States. These countries are particularly interesting as they face a variety of challenges due to institutional contradictions between the norms of Western finance and the inherited traditions of the Gulf. While Gulf SWFs may be limited in their effectiveness, these funds still serve as an important symbol for the region, representing a formal gesture towards ‘modernity’ in the context of nation-states' inherited traditions.

Copyright

References

Hide All
APFC. (Alaska Permanent Fund Corporation). 2008. Wealth Management Sovereign and Permanent Funds Around the World
Ambachtsheer, Keith, Capelle, Ronald, and Lum, Hubert. 2008. “The Pension Governance Deficit: Still With Us.” Rotman International Journal of Pension Management 1 (1): 1421.
Ammann, Manuel and Zingg, Andreas. 2010. “Performance and Governance of Swiss Pension Funds.” Journal of Pension Economics and Finance 9 (1): 95128.
Auty, Richard M. and Kiiski, Sampsa. 2001. “Natural Resources, Capital Accumulation, Structural Change, and Welfare.” In Resource Abundance and Economic Development, Auty, R. M. (ed.). Oxford: Oxford University Press, pp. 1935.
Thorsten, Beck. 2010. “Finance and Oil: is there a resource curse in financial development?Tilburg: Tilburg University. Available at: http://www.imf.org/external/np/seminars/eng/2010/afrfin/pdf/Beck2.pdf
Chwieroth, Jeffrey M. 2009. Capital Ideas: The IMF and the Rise of Financial liberalization. Princeton: Princeton University Press.
Chwieroth, Jeffrey M. 2010. “Fashions and Fads in Finance: Contingent Emulation and the Political Economy of Sovereign Wealth Fund Creation.” APSA 2010 Annual Meeting Paper. Available at SSRN: http://ssrn.com/abstract=1643861.
Clark, Gordon L. 2000. Pension Fund Capitalism. Oxford: Oxford University Press.
Clark, Gordon L. and Monk, Ashby H. B. 2010a. “The Legitimacy and Governance of Norway's Sovereign Wealth Fund: The Ethics of Global Investment.” Environment and Planning A 42 (7): 17231738.
Clark, Gordon L. and Monk, Ashby H.B. 2010b. “Government of Singapore Investment Corporation (GIC): Insurer of Last Resort and Bulwark of Nation-State Legitimacy.” The Pacific Review 23 (4): 429451.
Clark, Gordon L. and Monk, Ashby H. B. 2011. “Nation-State Legitimacy, Trade, and the China Investment Corporation.” Competition and Change (forthcoming).
Clark, Gordon L. and Urwin, Roger. 2008a. “Best-Practice Pension Fund Governance.” Journal of Asset Management 9 (1): 221.
Clark, Gordon L. and Urwin, Roger. 2010. “Innovative Models of Pension Fund Governance in the Context of the Global Financial Crisis.” Pensions: An International Journal 15 (1): 6277.
Corden, W. Max. 1984. “Booming Sector and Dutch Disease Economics: Survey and Consolidation.” Oxford Economic Papers 36: 359380.
Corden, W. Max and Peter Neary, J. 1982. “Booming Sector and De-Industrialisation in a Small Open Economy.” Economic Journal 92 (368): 825848.
Dvir, Eyal and Rogoff, Kenneth S. 2010. The Three Epochs of Oil. Cambridge MA: Department of Economics, Harvard University.
Dixon, Adam D. 2010. “Variegated Capitalism and the Geography of Finance: Towards a Common Agenda.” Progress in Human Geography (in press).
Dixon, Adam D. and Monk, Ashby H. B. 2011. “Rethinking the Sovereign in Sovereign Wealth Funds.” Working Paper. Available at SSRN: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1652701
Dore, Ronald P. 2000. Stock Market Capitalism: Welfare Capitalism – Japan and Germany versus the Anglo-Saxons. Oxford: Oxford University Press.
Dore, Ronald P. 2007. Inevitability. Bologna: Mulino.
Gertler, Meric S. 2001. “Best Practice? Geography, Learning and the Institutional Limits to Strong Convergence.” Journal of Economic Geography 1 (1): 526.
Hawley, James P. and Williams, Andrew T. 2007. “Universal Owners: Challenges and Opportunities.” Corporate Governance: An International Review 15 (3): 415–20.
Helper, Susan. 2000. “You Can Observe a Lot Just by Watching.” American Economic Review 90: 228232.
Hsin, Ping Lung and Mitchell, Olivia S. 1997. “Managing Public-Sector Pensions.” In Public Policy Toward Pensions, Schieber, S.J. and Shoven, J.B. (eds.). Twentieth Century Fund. Cambridge, MA: MIT Press, pp. 247266.
Hubbert, M. King. 1956. “Nuclear Energy and the Fossil Fuels.” Meeting of the Southern District Division of Production, American Petroleum Institute San Antonio, Texas, Publication No. 95. Houston: Shell Development Company, Exploration and Production Research Division.
Iglesias, Augusto and Palacios, Robert J. 2000. “Managing Public Pension Reserves Part I: Evidence from International Experience.” Social Protection Discussion Paper Series, Social Protection Discussion Paper no. 0003, Washington, DC: World Bank.
Jensen, Michael C. 1993. “The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems.” Journal of Finance 48 (3): 831880.
Jensen, Michael C. 2000. A Theory of the Firm. Cambridge, MA: Harvard University Press.
Karl, Terry L. 1997. The Paradox of Plenty: Oil Booms and Petro-States. Berkeley and Los Angeles: University of California Press.
Landon, Stuart and Smith, Constance E. 2010. “Energy prices and Alberta Government Revenue Volatility.” C.D. Howe Institute Commentary, No. 13, November 2010. Available at SSRN: http://ssrn.com/abstract=1719156
Lee, Roger, Clark, Gordon L., Pollard, Jane, and Leyshon, Andrew. 2009. “The Remit of Financial Geography—Before and After the Crisis.” Journal of Economic Geography 9 (5): 723747.
Merton, Robert C. and Bodie, Zvi. 2005. “The Design of Financial Systems: Towards a Synthesis of Function and Structure.” Journal of Investment Management 3 (1): 123.
Meseguer, Covadonga and Gilardi, Fabrizio. 2009. “What Is New in the Study of Policy Diffusion?Review of International Political Economy 16 (3): 527543.
Mitchell, Olivia S. and Hsin, Ping-Lung. 1997. “Public Pension Governance and Performance.” In The Economics of Pensions: Principles, Policies, and International Experience, Valdes-Prieto, S. (ed.). Cambridge: Cambridge University Press, pp. 92126.
Monk, Ashby H.B. 2009. “Recasting The Sovereign Wealth Fund Debate: Trust, Legitimacy, and Governance.” New Political Economy 14 (4): 451468.
North, Douglass C. 1990. Institutions, Institutional Change and Economic Performance. Cambridge: Cambridge University Press.
Ostrom, Elinor. 2005. Understanding Institutional Diversity. Princeton: Princeton University Press.
Romano, Roberta. 1993. “Getting Politics Out of Public Pension Funds and Out of Corporate Board Rooms.” American Enterprise 4: 4249.
Rose, Paul. 2012. “American Sovereign Wealth.” Ohio State Public Law Working Paper No. 161. Available at SSRN: http://ssrn.com/abstract=1960706.
Stone, Diane. 2004. “Transfer Agents and Global Networks in The ‘Transnationalization’ of Policy.” Journal of European Public Policy 11 (3): 545566.
Stone, Diane. 2008a. “Global Public Policy, Transnational Policy Communities and Their Networks.” Policy studies journal 36 (1): 1938.
Stone, Diane. 2008b. “Global Public Policy and Transnational Policy Communities.” In Governance and the Depoliticisation of Development, Hout, W. and Robinson, R. (eds.). London and New York: Routledge, pp. 6376.
Summers, Robert S. 2006. Form and Function in a Legal System: A General Study. Cambridge: Cambridge University Press.
Teece, David. 2000. Managing Intellectual Capital. Oxford: Oxford University Press.
Teece, David. 2002. “Dynamic Capabilities” In International Encyclopaedia of Business & Management: Handbook of Economics (2nd Edn.) edited by Lazonick, W. London: Thompson, pp. 106116.
Von Hippel, Eric. 2005. Democratizing Innovation. Cambridge, MA: MIT Press.
Williamson, Oliver E. 1996. The Mechanisms of Governance. New York: Oxford University Press.
Woo-Cumings, Meredith. 1999. The Developmental State. Ithaca: Cornell University Press.
Yergin, Daniel. 1992. The Prize: The Epic Quest for Oil, Money, and Power. New York: Simon & Schuster.
Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Business and Politics
  • ISSN: -
  • EISSN: 1469-3569
  • URL: /core/journals/business-and-politics
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×

Keywords

Metrics

Full text views

Total number of HTML views: 0
Total number of PDF views: 0 *
Loading metrics...

Abstract views

Total abstract views: 0 *
Loading metrics...

* Views captured on Cambridge Core between <date>. This data will be updated every 24 hours.

Usage data cannot currently be displayed