Rebuilding America: The Role of Foreign Capital and Global Public Investors
Executive Summary
Sovereign wealth funds, foreign state managed social security plans, foreign currency reserve funds, foreign government employee pension funds, state-controlled operating companies and other foreign investing vehicles today collectively control trillions of dollars in assets and are projected to maintain significant growth over the next decade. These disparate foreign government entities－characterized in this report as Global Public Investors (“GPIs”)－are becoming increasingly influential players in the world economy. In the volatile contemporary global financial environment, the investment strategies of these foreign entities will impact capital flows and affect markets around the world.
Despite their growing salience in the international economy, policy-makers and political leaders in the United States have only a partial understanding of the investing practices, management and governance of these sources of foreign capital. There is finite knowledge regarding their strategic, political and regulatory implications and limited appreciation of their enhanced role in the deployment of global capital.
In this report, participants in the Brookings Institution Project on Foreign Capital and Global Public Investors have drawn on a variety of resources regarding how this class of international financial actors defines its core objectives, assesses and manages risk, and deploys capital.[1] We attempt to analyze what foreign capital and GPIs mean for the United States and what regulatory, political, and governance issues flow from their expanding size and pace of investment activity. In preparing this report, project participants interviewed senior investment professionals from sovereign wealth funds and other GPIs; consulted investment bankers who originate and execute investment opportunities for GPIs on a global basis; engaged some of the world’s leading public policy researchers tracking the activities of sovereign wealth funds; held off-the-record conversations with former senior U.S. government officials; and also analyzed government data, surveyed think-tank literature and reviewed recent media and academic articles.[2] Based on these disparate sources, we seek to discern broad patterns of response by GPIs to the recent financial crisis and to assess the impact on long-term American interests.
--------------30--------------
In this BLOG we will look at pensions and their impact on what are called Public Private Partnerships or P3’s. IT will also deal with other pension matters, such as Defined Contribution Plans (DC) vs Defined Benefit (DB) PLANS, the weakness in private plans, the need for pension reform in public pensions to have shareholder rights, directorships and ethical investment directives and policies.
No comments:
Post a Comment