Sovereign Wealth Funds Are Only a Symptom
Daniel Drezner, Tufts University | May 19, 2008
Foreign direct investment by sovereign wealth funds from oil-producing and Pacific Rim nations has many Americans worried about the impact on financial markets. ++ However, the lack of transparency poses a greater problem for the country of origin than the host. ++ Of greater concern for the US are the political ramifications. ++ Large assets in autocratic regimes undermine democratization and America's ability to act in issues of security. ++ The US must work towards energy efficiency and revaluation of Asian currencies.
