Want China Times
Despite the dubious effect of the expansionary measures contained in the “program for
boosting the economic strength” recently rolled out by Taiwan’s National Development Council due to the government’s financial shortfall and sluggish private investments, the proposal to study the setup a sovereign wealth fund in the program warrants serious consideration as it can generate extra capital to induce investment.
The idea of a sovereign wealth fund has long been a contentious topic. The program represents the first time for the proposal to be put on the government’s agenda, underscoring the awareness of the need for new conceptual approach for economic development.
Sovereign wealth funds have been embraced by both developed and developing nations — Norway and Finland to name two in the former category, and Indonesia, Malaysia and Vietnam in the latter. There have been new converts to the concept since 2011, including Italy, Russia, Mongolia, Ghana and Mexico, in addition to similar institutions in some states of the US. They are seen as a means to flexibly utilize national assets to facilitate the achievement of government policies. [FULL STORY]