D H
Dec 1 · Last update 4 mo. ago.

Can sovereign wealth funds aid the post-pandemic economic recovery?

The coronavirus pandemic is expected to continue to take lives long after widespread vaccination, as the economic fall out of COVID-19 is likely to have lingering consequences that may prove more fatal than the actual virus. A sovereign, citizens or social wealth fund is one proposed method of easing this economic strain, whereby a government invests in a pool of publicly owned long-term income-generating assets, whose returns are used to fund citizen dividends or social welfare programs. With interest rates likely to be held at low levels to aid economic recovery after the pandemic some economists have claimed it would be the perfect time to establish such an economic policy, however, there are also a number of concerns about sovereign wealth funds, with some opposed to them. Should Governments be setting up citizen’s wealth funds to aid post-pandemic recovery? peg.primeeconomics.org/policybriefs/citizens-wealth-funds
Stats of Viewpoints
NO
0 agrees
0 disagrees
YES
0 agrees
0 disagrees
Viewpoints
Add New Viewpoint

NO

Sovereign wealth funds (SWFs) can have positive or negative effects, like any fund how effective they are depends on how the money is spent, and sometimes it could even lead to a country getting poorer. Countries such as the US oppose SWFs as they may lead to international protectionism, but they can also cause corruption, obsessions with budget balancing, and a lack of political courage as over-reliance on such schemes can prevail. The most popular argument for sovereign wealth funds is to fund innovation, but not all research and development investments make a country richer, look at massive projects that failed, e.g. Concord. In addition to transparency concerns SWFs raise moral ones also, some SWF investments may exacerbate climate change, war or human rights abuses, for example Norway's SWF has invested billions in arms, torture and surveillance technology, despite their SWF having rules to stop this from happening.

cbc.ca/news/business/vaccine-markets-interest-rates-1.5795620 youtu.be/f7sRMIxYVVk?t=1628 forbes.com/sites/riskmap/2013/12/19/the-promise-and-perils-of-sovereign-wealth-funds/?sh=5652bddf48cd

Agree
Disagree
Latest conversation
D H
May 11
Created

YES

Sovereign wealth funds have already led to several success stories, such as Norway’s Government Pension Fund, or Alaska’s Permanent Fund that is used to pay a public dividend program which has been called the world’s only example of a basic income program. But this development is already largely underway with an increasing number of governments looking to establish such “rainy day” funds. Countries that already have such funds in place have been able to make withdrawals during this period to provide economic support to the country’s economy during the pandemic, for example Norway and Nigeria. Governments need to establish citizen’s wealth funds to address not only the COVID economic crisis but the impending environmental crisis also. Such funds could be invested in de-carbonisation and job retraining schemes, while reinforcing a feeling of stakeholder-ship and citizenship in the citizenry, something that has taken a knock in many parts of the world in recent years.

peoplespolicyproject.org/projects/social-wealth-fund straitstimes.com/business/economy/sovereign-wealth-funds-invest-more-at-home-amid-covid-19-woes

Agree
Disagree
Latest conversation
D H
Dec 1
Created
Translate