Should we worry about sovereign wealth funds

Government-owned investment vehicles, commonly known as sovereign wealth funds (SWFs), attract controversy in Australia and elsewhere. Much of this criticism concerns foreign SWFs investing in major commercial assets, with a loss of domestic ownership and control. Public opinion polls show, for example, strong opposition to Chinese SWFs buying Australian mining assets. Even those unworried by foreign ownership may be concerned about an increase in government ownership. Historically government ownership has often been characterised by politicised decision-making and cronyism.