Sovereign wealth funds (SWFs) now control over $13 trillion in assets and have become powerful financial actors on the global stage. As these state-owned investment vehicles shift from passive holdings to direct investments, particularly in sensitive sectors, concerns surrounding politically-motivated investments have heightened. Volume XLIX staff editor Sophia Lima argues that the current patchwork of domestic screening procedures and voluntary international principles are inadequate tools for SWF regulation. This post examines why stronger transparency requirements and a binding international framework are needed to regulate SWFs in the modern global economy.
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