In this post i want to turn to what I call the next modern scourge that is going to pertuate poverty into the next colonization of the Universe.
While the mass of collective media and politicians are obsessed by war on terror, the credit crunch, climate change SOVERIGN FUNDS ( SWFs) are attacking the very foundations of Democracy.
With reserves of trillions of dollars, they are geopolitical troublemakers, and are becoming major contributors to the problems of economic development / fair trade in the world.
The world of global investment is now in the early stages of a transformation more profound than anything it has witnessed in literally decades. There is a powerful, worldwide trend among major institutional investors to incorporate, “sustainability ” or “ESG” ( environmental, social, and governance) concerning notably climate change — into their global investments strategies. However profit for the sake of profit remains at the heart of SWF.
These funds have been in existence since 1953, but their power only mushroomed since the turn of the Millennium. The question is are they to be welcomed or feared? Are they the new form of Colonization.
Whether they are Politically motivated or not they already control well over 9% of total world assets.
What are they?
Camouflaged in many forms and names they are assets of governments that are not applied principally in foreign treasury bonds.
They are countries reserves of trillions of dollars, turned into marauding investments that have the potential to inflict financial terrorism on unsuspecting countries. They invest through cloaked investment funds without any demands being made as to what social and economic goals are being served or to what degree they are serving broader or national objectives. Existing in a world without any frontiers. Immune to any form of transparency or regulation.
Western governments and the world have only recently woken up to the wealth and growing power being exerted by these funds. Their threat being acknowledge by Alistair Darling UK Chancellery, Anglea Markel President Germany, the European Commission, Barack Obama, Hank Pailson US Treasury Secretary, the IMF to mention a few.
We are all award of imbalance in world trade. Some countries are running huge surpluses while others are poverty stricken. So when you see China buying up Africa, offering the UK 6 billion to build their fast rail inter structure with a SWF loan one might stop to ask. Are our government’s transferring the Sovereignty of our Nations by allowing these funds buy up natural resources, new technologies, companies etc?
Surely the freedom of movement of Capital should mean that investments in global markets by foreign corporations/governments must benefit both the investor and the beneficiary, without inflicting damage on the communities of both the developed world and the undeveloped world. Not so. It is projected that the world as a whole will have holdings of Governmental assets in SFW funds on a 50/50 with the funds reaching 6.5 trillion $
I believe that it is our duty to lobby the United Nations To place a 0.0001% on all stock exchange transactions, currency transactions, SFW transactions.
Watching my TV yesterday over a hundred world leaders hope by be seen worldwide so that they might benefit from the glory of a life of a man called Nelson Mandela If they are to take any thing away with them let it be this . The power of ideas are not contained by prison walls.
- Managing the World’s Wealth (bidnessetc.wordpress.com)
- Battle for world’s largest wealth fund, and what it means for energy sector (reneweconomy.com.au)