Bangkok Post, 25 Aug 2012Dr Balding cited Singapore's Temasek as an example of a non-commodity-based fund. Temasek requires the country to amass current account and fiscal surpluses of 30% of gross domestic product to endow the fund.
"In countries without such clear funding sources, it is unclear that establishment is a wise idea due to the incredibly distortive policies it requires," he said.
"Sovereign wealth funds can simply become public savings that need to be paid for. In the absence of existing national wealth such as natural resources, countries should seriously review the distortion they introduce." Full story
