Environment & Climate Change

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.

Richard Verma’s two-year tenure as U.S. Ambassador to India concluded last month with the new incoming presidential administration. During his time in New Delhi, Verma established himself as one of the most consequential envoys to ever occupy the prestigious post once held by such foreign policy legends as John Kenneth Galbraith and Frank Wisner. The first Indian American to serve in the role, Verma leaves behind a far-reaching legacy. He raised the U.S-India strategic partnership to unparalleled heights in virtually every arena of bilateral cooperation while serving as a skilled and talented public diplomat.

Integrated policy and planning is needed to effectively meet the challenges of growing water and energy inter-dependencies in many regions. Joint consideration of both water and energy domains can identify new options for increasing overall resource use efficiencies. In order to identify and realize such opportunities, however, detailed knowledge of current and emerging water–energy couplings is needed along with a nuanced understanding of key actors and agencies engaged in decision-making. In this paper we develop a systematic, analytical approach based on quantitative analysis of water and energy couplings, identification and characterization of key actors and groups using concepts from stakeholders theory, and employing notions from organization theory of boundary-spanning agents that can serve to bridge inter-organizational networks for water and energy planning. We apply this approach to conduct an in-depth investigation of water and energy resources in Jordan.

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 Rio+20 process is an important reminder of the urgency to guide global production and consumption patterns with sustainability principles. Sadly, there is really no genuine global institution that is championing sustainable development. The vision that inspired Rio has been supplanted by two extreme positions. The first is a group that believes economic growth will have trickle-down benefits for the environment. The environmental camp has successfully replaced the spirit of Rio with a one-sided agenda that leaves little room for recognising the central role that human wellbeing plays in natural resource management."

"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."

"Leaders are those who help groups create and achieve shared goals. Traditionally, the leaders in international politics have been the most powerful states. However, while hard military power counts for more in the context of international politics than it does in democratic domestic politics, even in international relations conquest, or pure coercion, is not leadership, but mere dictation. Disproportionate power, sometimes called 'hegemony', has been associated with leadership, but appeals to values and ideology also matter, even for a hegemon...."

"On January 20, you will inherit a legacy of trouble: Iraq, Iran, Pakistan, Palestine, North Korea for starters. Failure to manage any one of them could mire your presidency and sap your political support—and threaten the country’s future. At the same time, you must not let these inherited problems define your foreign policy. You need to put them in a larger context and create your own vision of how Americans should deal with the world."

"I would urge every scientist and engineer with an interest in the intersection of S&T with sustainable well-being...to 'tithe' 10% of your professional time and effort to working in these and other ways to increase the benefits of S&T for the human condition and to decrease the liabilities. If so much as a substantial fraction of the world's scientists and engineers resolved to do this much, the acceleration of progress toward sustainable well-being for all of Earth's inhabitants would surprise us all."