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.

We urge the next president to establish a White House Council of Historical Advisers. Historians made similar recommendations to Presidents Carter and Reagan during their administrations, but nothing ever came of these proposals. Operationally, the Council of Historical Advisers would mirror the Council of Economic Advisers, established after World War II. A chair and two additional members would be appointed by the president to full-time positions, and respond to assignments from him or her. They would be supported by a small professional staff and would be part of the Executive Office of the President.

Richard W. Maass and Carla Norrlof respond to Daniel W. Drezner's Summer 2013 International Security article, "Military Primacy Doesn't Pay (Nearly As Much As You Think)."

"It has been nearly thirty years since I received my PhD. At that time, I was convinced that systematic scholarly research could uncover and verify timeless truths about international politics and foreign policy, and that once those discoveries had been made, a grateful policy community would quickly absorb them and adopt the right prescriptions. With the passage of time, I've gained both a greater respect for the limits of what social science can accomplish and a greater appreciation for the imperviousness of the policy community to reasoned discourse, especially in the United States. Even if scholars were able to produce more convincing analyses—itself a debatable proposition—overcoming the entrenched interests that shape what policy makers choose to do is not easy."

"...[T]he academic study of international affairs will be impoverished if the relevant academic disciplines continue to turn inward, to focus on narrow issues that are primarily of interest only to other scholars, and to become even less interested in communicating to policymakers, the broader public, or the bulk of our students (the vast majority of whom do not want to be social scientists themselves). Accordingly, our goal should be to encourage a diverse, engaged community of scholars that is still committed to a free exchange of ideas and to high standards of both rigor and relevance."

"Just when it seemed safe to start using the word "recovery," a Greek crisis is threatening the world economy, and the very existence of the world's second-biggest currency."

After World War II, "trading states" seemed to be charting a new path forward. But small was not beautiful. Even great powers found themselves negotiating larger markets through economic associations with others. It's time the United States became such a power.

"For a time, [Chimerica] was a symbiotic relationship that seemed like a marriage made in heaven. Put simply, one half did the saving, the other half the spending. Comparing net national savings as a proportion of Gross National Income, American savings declined from above 5 percent in the mid 1990s to virtually zero by 2005, while Chinese savings surged from below 30 percent to nearly 45 percent. This divergence in saving patterns allowed a tremendous explosion of debt in the United States, for one effect of the Asian "savings glut" was to make it much cheaper for households to borrow money than would otherwise have been the case."

As a result of the recent financial crisis, the United States has grown increasingly dependent on foreign sources of credit. U.S. policymakers worry that China, in particular, could use its financial power to influence U.S. foreign policy. However, two case studies (the contestation over the regulation of sovereign wealth funds and the protection of Chinese investments in the United States) demonstrate that their concerns are somewhat exaggerated. The current relationship between the United States and China is one of mutual dependency. Unless the balance shifts, China will be able to resist U.S. entreaties, but not coerce the United States into changing its policies.

"As the American political system hurtles toward its quadrennial encounter with the oracle of democracy, it is worth our while to take stock of the country's place in a world beset by bewilderingly rapid change. (Heaven knows none of the candidates will bother to do this.) I want to suggest that an old yet generally neglected subject remains particularly relevant: the relationship between the size of political units and the effective scale of systems of economic production and exchange. Another way to describe this relationship is by recourse to the hoary scholarly phrase "political economy", a term of art that has unfortunately gone out of style...."