Making the World Safe for Sovereign Wealth Funds

Although the weekend gathering of finance ministers and central bankers in Washington was, until Monday, filled with doom and gloom, one event was very encouraging. The International Working Group (IWG) of sovereign wealth funds (SWFs) unveiled their voluntary Generally Accepted Principles and Practices (GAPP)—the Santiago Principles. The GAPP is a solid piece of work that should help to dispel some of the mystery and suspicion surrounding SWFs. The International Monetary Fund deserves substantial praise for facilitating an agreement in the IWG in a remarkably short period of time.