Articles

The small open economies of the Gulf and Southeast Asia are pioneers in the establishment of

Sovereign Wealth Funds (SWFs). The SWFs of countries like Qatar and Singapore are among the

world’s largest in terms of total asset size relative to Gross Domestic Product. This article looks

at the different compulsions behind the setting up of SWFs by small open economies.

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.

"The rise of nations such as South Korea, Singapore and China as global economic players illustrated the importance of expanding and deepening human competence. A key starting point in the growth process is recognising that building engineering capabilities offered the best opportunity for technological leapfrogging and catch-up in a variety of industries."

International security debates surrounding the European Union (EU) energy supply challenge commonly invoke the need for more EU hard power – e.g. getting tough on Russia or engaging directly with other exporters. This article investigates whether what might be labeled ‘soft power with a hard edge’ instead amounts to a consistent policy strategy for the EU. The central argument is that the EU has turned a weakness into strength, and developed a set of tools that sharpen the way soft power is exercised in the energy sector. The article explores how soft power affects companies that ‘come and play’ on the EU market: the rules of the Single European Market (SEM) and how they affect external firms. It also assesses the long reach of the SEM: both the gravitational ‘pull’ the SEM exerts in the ‘near aboard’, and the EU's ‘push’ to facilitate the development of midstream infrastructure and upstream investment. The conclusion is that the EU regulatory state is emerging as an international energy actor in its own right. It limits the ways states like Russia can use state firms in the geopolitical game; and it exports its model into the near abroad, thus stabilizing energy supply and transit routes.

"To harness the globally available technologies, African leaders will need to take into account the multisectoral dimension of African agriculture and pay particular attention to the urgency of investing in rural infrastructure, higher agricultural training and creation of regional markets."

Africa is yet to adopt full scale technology-led development. Steve Mbogo spoke to the Director of the Belfer Center's Science, Technology, and Globalisation Project and professor at Harvard University Calestous Juma on the opportunities that await the continent as a late comer.

"The challenge is finding an entry point for fostering science, technology and engineering cooperation between China and Africa. An obvious starting point is agriculture. There are two reasons for this suggestion. First, agricultural transformation was one of the first major programs launched by China after the adoption of the 1982 constitution."

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.

"The rising concern over global food price volatility has put agriculture at the center of international diplomacy. But unlike the 1950s when food aid became a major tool in international relations, modern interactions among states are being defined by trade and knowledge transfer. A new field — agricultural diplomacy (AgroDiplomacy) — is emerging as countries learn more about their shared ecological experiences and agricultural trade interests. The prospects for building such relations are evident in the rise in cooperation between Africa and Latin America."

"...it is a mistake to see high prices as a proxy for actual hunger. Most of the world's hungry citizens do not get their food from the world market, and most who rely on the world market are not poor or vulnerable to hunger."