The role of sovereign wealth fund in international investment law

Abstract

With the onset of the recession and gradual collapse of hedge funds, investment banks and mercantile firms apart from state-owned central banks across the Western hemisphere, the study of the types and sources of wealth possessed by Governments is of utmost importance. Although the international investment climate is in doldrums, business is booming as far as India is concerned. In this article, the authors seek to trace a primary study of the concept, functions and operations of sovereign wealth funds. Special emphasis has been laid on the manner in which Governments employ and utilize such funds. In conclusion, the authors have attempted to establish links between global politics and diplomacy on international investments and the effects of the former on the investments made by states.