The Effectiveness of Public Policy on Governing Domestic SWFs

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Public policies influence the effectiveness of the public institutional investment funds such as SWFs (Sorkin, 2010). Bruenig (2018) complemented Sorkin’s research to present cases that the state level policies play a key role in shaping domestic SWFs. In contrary to the governance structure of the International SWFs, in the United States, the state legislatures take
the leadership role.

 

The states introduce, formulate and place policies on the general election ballot as per the constitution of the respective states. At the Federal policy level, once the voters approve a SWF, the respective states form independent state-owned enterprises (S.O.E.s) under the governance of the U.S. Department of Treasury. The research by Sorkin (2010) indicated that the public policies related to SWFs at the Federal level have changed during and after the financial crisis of 2007-2008.

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The Governance Structure of Domestic SWFs

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The Impact of Political Economy on Practices of Domestic SWFs

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