Articles

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Journal Article - Global Policy

The Case for Economic Development Through Sovereign Investment: A Paradox of Scarcity?

| Apr. 14, 2018

Sovereign wealth funds (SWFs) have traditionally been created to recycle excess reserves from natural resource or non‐commodity revenues. However, in recent years funds are being established under conditions of capital scarcity with objectives to contribute domestic economic development, often through the buildout of national infrastructure programs. Such trends in new fund creation represent a fundamental shift in the sovereign wealth fund paradigm and raise serious questions about how these entities are to be capitalized and also the implications of capitalization models on their sustainability. This study examines the recent evolution of SWF models focused on economic development. Its analytic focus is drawn, in particular, to countries that are neither endowed with oil wealth, nor otherwise enjoy export surpluses to be used to capitalize a development‐oriented SWF. While this study is relevant to and expands the scope of the broad literature on SWFs, its specific contribution is as a focused analysis of how SWF funding sources impact achieving long‐term financial and socio‐economic development objectives.

Gertrude Kitongo poses with her mobile phone in Johannesburg, South Africa. She cherishes a cell phone as a link to family and friends and also sees it as a radio, a library, a mini cinema, a bank teller, etc., Nov. 8, 2011.

AP Photo

Magazine Article - Finance & Development

Africa's New Engine

| December 2011

Cell phone use has grown faster in Africa than in any other region of the world since 2003....Of course, South Africa—the most developed nation—still has the highest penetration, but across Africa, countries have leapfrogged technology, bringing innovation and connectivity even to remote parts of the continent, opening up mobile banking and changing the way business is done.

Young women shop for China-made plastic flowers in a store opened by Chinese businessmen in Bissau, Guinea-Bissau, Jan. 3, 2007. In Africa, China has found a huge market for its cheap goods and the natural resources it needs to sustain its growth.

AP Photo

Newspaper Article - that's China

Exploring the Sino-African Relationship: Both Sides Have Something to Offer

| February 2, 2008

China's Ministry of Science and Technology launched the China-Africa Science and Technology Partnership on November 24, 2009.  The ministry announced that technological cooperation will be enhanced in areas such as water management and conservation, sanitation, crop breeding, health, and renewable energy. One hundred joint research partnerships will be created, and 100 African scientists at the postdoctoral level will have the opportunity to conduct research at China's technology parks, research institutes, and private enterprises. Chinese scientists and engineers will also travel to African countries to provide technical guidance, and in order to increase the research capacities of African countries, China will also donate laboratory equipment.

Science, Technology, and Globalization Project Director Calestous Juma shared his insights into the history and future of Sino-African relations in a February 2008 interview with that's China columnist Jing Zhang.