by Edwin M. Truman, Peterson Institute
The challenge facing the United States and the international financial community is how to make the world safer for sovereign wealth funds and maintain our own, open market-based regime in which private-sector actors are the major players. My answer is agree upon a set of best practices, or a standard, for sovereign wealth funds to make them more accountable to their own citizens and governments, to the citizens and governments of host countries, and to participants in financial markets. Transparency has a large part to play in establishing such accountability, but it is only part of the game.
Based upon the "scoreboard" [pdf] for 33 sovereign wealth funds that I have developed, I am confident that the union of the actual practices of those funds provides an appropriate framework for a set of best practices. The reason is that at least one sovereign wealth fund currently, voluntarily complies with each of the 25 elements in the scoreboard.2
[Read More:Peterson Institute for International Economics]
