Energy

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.

Like revolutions in the past the on-going AI revolution will produce winners and losers. The first industrial revolution in the 18th century changed the world of production and paved the way for Britain’s global leadership. Similarly, the current digital revolution is redefining the service sector and China’s role in the world.

In the year since Russia and China signed a landmark $400bn natural gas pact in May 2014, rapid developments in the energy sector and the geopolitical situation offer a chance to re-examine the deal. Indeed, the aftermath of the pact saw a return to a world of cheaper oil—a situation driven by a number of factors outside of Russia’s control. The buffeting winds of broadbrush western sanctions have deepened the uncertain fiscal outlook for Russia’s hydrocarbon-driven economy, calling its financial resilience into question.

This paper examines the domestic sources of the internationalization of national oil companies (NOCs) in China and India. It argues that—counter to notions of state-led internationalization—the going abroad of NOCs reflects a pattern of “coopetition,” i.e., the co-existence of cooperation and conflict between increasingly entrepreneurial NOCs and partially supportive and interventionist home governments.