The Truth About Sovereign Wealth Funds

Worried about oil-rich foreigners taking over your economy? You shouldn’t be. In reality, it is citizens of unaccountable, paternalistic regimes who stand to lose most when rulers play games with their national wealth.

BY ANDERS | DECEMBER 3, 2007

ALEXANDER NEMENOV/AFP/Getty ImagesScare story: Citizens in places like Abu Dhabi and Russia stand to lose far more from sovereign wealth funds than Westerners do.

The Arabs, the Chinese, and the Russians are about to buy up large swathes of Western economies. Or so the scare story goes. A frenzy of recent activity, including Dubais purchase of an undisclosed amount of Sony...

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