Beyond Santiago: Status and Prospects

{
  "authors": [
    "Sven Behrendt"
  ],
  "type": "legacyinthemedia",
  "centerAffiliationAll": "",
  "centers": [
    "Carnegie Endowment for International Peace",
    "Malcolm H. Kerr Carnegie Middle East Center"
  ],
  "collections": [],
  "englishNewsletterAll": "",
  "nonEnglishNewsletterAll": "",
  "primaryCenter": "Malcolm H. Kerr Carnegie Middle East Center",
  "programAffiliation": "",
  "programs": [],
  "projects": [],
  "regions": [
    "Egypt",
    "Gulf",
    "Levant",
    "Maghreb"
  ],
  "topics": [
    "Economy"
  ]
}

In The Media

Malcolm H. Kerr Carnegie Middle East Center

Beyond Santiago: Status and Prospects

Implementation of the Santiago Principles is highly uneven and there is still far to go if sovereign wealth funds are to be responsible members of the global economy.

By Sven Behrendt

Published on May 3, 2010

Source: Central Banking

Beyond Santiago: Status and ProspectsThe rise of sovereign wealth funds as an important investor class in international finance has been a source of concern for a number of industrialised economies who feared that these funds’ investments could compromise their economic competitiveness and national security. Reacting to steps – some real, some threatened – in recipient countries to enact regulation against sovereign investment, sovereign wealth funds responded by developing their own set of “industry standards.” In October 2008, the International Working Group of Sovereign Wealth Funds published the Generally Accepted Principles and Practices (GAPP), more commonly known as the Santiago Principles.

The purpose of the Santiago Principles is to identify a framework of generally accepted principles and practices that reflect appropriate governance and accountability arrangements, as well as prudent investment practices by sovereign wealth funds. Three aspects relating to the Santiago Principles warrant closer examination and will be discussed in this article: first, why did sovereign wealth funds find it necessary to develop and associate themselves with the Santiago Principles? Second, what is the status of the principles as a new approach to global financial governance? And third, how robust are the Santiago Principles and can they contribute to a stable global financial system and a free flow of capital and investments?

About the Author

Sven Behrendt

Former Visiting Scholar, Middle East Center

Behrendt is an expert in global issues, international negotiations, conflict resolution, and corporate strategy. He previously served at the World Economic Forum in various management positions.

Recent Work

Paper
Sovereign Wealth Funds and the Santiago Principles: Where Do They Stand?
- Sven Behrendt
Article
Sovereign Wealth Funds: The Governance Challenge
- Sven Behrendt

Economy Egypt Gulf Levant Maghreb

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

More Work from Carnegie Endowment for International Peace

Commentary
Diwan
Pushing Beirut into an Armed Conflict With Hezbollah Is Insane
The party’s domestic and regional roles have changed, so Lebanon should devise a disarmament strategy that encompasses this.
Michael Young
Commentary
Carnegie Politika
In Russia, Private Companies Have Been Left to Pick Up the Tab for Ukrainian Drone Attacks
The cost of air defense has become an unregistered tax on revenue for businesses. While military rents are consolidated in the federal budget, the costs of defense are being spread across the balance sheets of companies and regional governments.
Alexandra Prokopenko
Commentary
Diwan
Corrupted by Absolute Power
In an interview, Marc Lynch discusses his new book decrying the post-1990 U.S.-dominated order in the Middle East.
Michael Young
Commentary
Emissary
“China Doesn’t Do Anything for Free”
Why the outcomes of the U.S.-China meetings may be limited.

Aaron David Miller, David Rennie
Commentary
Diwan
Why Does the Middle East Suffer “Forever Wars”?
Because perpetual conflict enhances control, offers economic benefits, and allows leaders to ignore popular preferences.
Angie Omar

More Work from Carnegie Endowment for International Peace

Commentary

Diwan

Pushing Beirut into an Armed Conflict With Hezbollah Is Insane

The party’s domestic and regional roles have changed, so Lebanon should devise a disarmament strategy that encompasses this.

Michael Young

Commentary

Carnegie Politika

In Russia, Private Companies Have Been Left to Pick Up the Tab for Ukrainian Drone Attacks

The cost of air defense has become an unregistered tax on revenue for businesses. While military rents are consolidated in the federal budget, the costs of defense are being spread across the balance sheets of companies and regional governments.