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Developing Asia's Sovereign Wealth Funds: The Santiago Principles and the Case for Self Regulation

Published online by Cambridge University Press:  03 March 2011

Donghyun PARK  and
Gemma Esther ESTRADA
Donghyun PARK*
Affiliation:
Asian Development Bank, Philippines
Gemma Esther ESTRADA*
Affiliation:
Asian Development Bank, Philippines
*
[email protected] and [email protected]
[email protected] and [email protected]
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Abstract

Concerns in host countries about the investment activities of sovereign wealth funds (SWFs) arise from their non-commercial motives and lack of transparency. In response to such concerns, investor countries have begun to work together to set up the norms and laws which will define the governance and regulation of SWFs. In particular, the Santiago Principles have given birth to a set of voluntary principles and guidelines designed to guide their investment behaviour. In this article, we point out that the Santiago Principles are fundamentally consistent with the commercial self-interest of SWFs, which bodes well for the prospects of their voluntary adoption. The Santiago Principles serve a highly valuable role as a mechanism which signals and crystallizes the commitment of SWFs to comply with the basic rules and regulations of the countries in which they invest.

Type
Symposium: Sovereign Wealth Funds
Information
Asian Journal of International Law , Volume 1 , Issue 2 , 14 June 2011 , pp. 383 - 402
Copyright
Copyright © Asian Journal of International Law 2011

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Footnotes

*

Principal Economist, Economics and Research Department, Asian Development Bank, Manila, Philippines.

†

Economics Officer, Economics and Research Department, Asian Development Bank, Manila, Philippines.

The views expressed in this article are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank, or its Board of Governors, or the governments they represent.

References

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