Articles

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.

Donald Trump and Kim Jong-un trading threats with words like “fire and fury”; Pakistan deploying tactical nuclear weapons to counter Indian conventional threats; Russia enunciating an Orwellian doctrine of “escalate-to-de-escalate” that calls for early use of battlefield nuclear weapons; and major nuclear-weapons states modernizing their arsenals — nukes are back. The cruel irony: This is happening after eight years of a president who won the Nobel Peace Prize largely for his vision of a world free of nuclear weapons.

The fall of Aleppo is a human catastrophe. It’s also a demonstration of the perils of choosing the middle course in a military conflict. Sometimes it’s possible to talk and fight at the same time. But in Syria, the U.S. decision to pursue a dual-track, halfway approach made the mayhem worse.

The defining question about global order for this generation is whether China and the United States can escape Thucydides’s Trap. The Greek historian’s metaphor reminds us of the attendant dangers when a rising power rivals a ruling power—as Athens challenged Sparta in ancient Greece, or as Germany did Britain a century ago. Most such contests have ended badly, often for both nations, a team of mine at the Harvard Belfer Center for Science and International Affairs has concluded after analyzing the historical record. In 12 of 16 cases over the past 500 years, the result was war. When the parties avoided war, it required huge, painful adjustments in attitudes and actions on the part not just of the challenger but also the challenged.

Joel Brenner responds to Jon R. Lindsay's winter 2014/15 International Security article, "The Impact of China on Cybersecurity: Fiction and Friction."

American Secretaries of State Project honoree Henry A. Kissinger looks back on George C. Marshall's groundbreaking 1947 Harvard Commencement speech and its enduring importance for American foreign policy.