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Hastings Business Law Journal

Abstract

Recent contemporary sovereign wealth funds developments, viewed against the historical backdrop of international law and practice, particularly foreign investment law and practice, underscore the inter-action between economics, law and politics. This article first introduces the issues that have emerged as a result of sovereign wealth funds contemporary investments and observes how sovereign wealth funds and recipient countries have reacted to these developments. It proposes a model of sovereign wealth fund governance based on consultation, cooperation and coordination. This model draws on the experience of current deliberative fora such as the G20 summits and the International Working Group of Sovereign Wealth Funds, International Monetary Funl's forum, the bilateral arrangements between countries and the laws and practices of some sovereign wealth fund countries, particularly Singapore. This article further examines the oversight regimes to which Singapore sovereign wealth funds are subject, and recommends the approach of the Singapore sovereign wealth funds as a starting point for achieving an optimal balance between nationalism and global financial stability based on free capital and investment flows.

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