NRGI: "Why Sovereign Wealth Funds Should Not Invest at Home"

Over at NRGI an interesting post from Andrew Bauer [linkedin.com] on the allocation of SWF funds for investing abroad or at home.

SWFs, as savings mechanisms for macroeconomic management, should not be the vehicles of such direct spending. If there is under-investment in the domestic economy, a far better way to remedy the situation is to enact fiscal rules that allocate resource revenues more appropriately between the budget and a SWF.

This reminds me to our experience during the Workshop in Azerbaijan [oxcarre.blogspot.com], where its Fund SOFAZ is allocated the duty to spend and invest on projects that one typically would find in the government budget.

Read on here [resourcegovernance.org], or here [blog-pfm.imf.org].