Sovereign Wealth Funds: Is Capital an Instrument of Power ?

The strategic component of sovereign wealth fund investments which manage some $15 trillion in assets appears to offer an alternative to the short-termist approach of certain governments.The objectives of these sovereign wealth funds vary: transforming revenues from finite resources into sustainable income (intergenerational savings), diversifying economic activity, maintaining state control in sectors deemed strategic, acquiring technologies or infrastructure abroad, and even funding pensions. Through their acquisitions, they can also contribute to strategies of geopolitical influence.

This is certainly appealing to states that do not yet have such funds. But how can they be financed in a country without natural resources or a trade surplus? When will the EU establish a sovereign wealth fund to support strategic European companies and strengthen its sovereignty? Do the acquisitions by certain funds not provoke a resurgence of protectionism? How should one respond to soft power that is perceived as divisive by the target society?