Thursday, 12 April 2012 04:19
DOHA: The world's estimated $1.5 trillion worth sovereign wealth funds (SWFs) need to shift their investment focus. Rather than going for a buying spree, these funds have to be channelled to more 'productive' ways that would help countries grow sustainable ways, a UN body adviser has said.
Talking to The Peninsula yesterday, Kobsak Chutikul, Interregional Adviser, Office of the Secretary General, United Nations Conference on Trade and Development (Unctad) said SWF has great potential to fill the gap in development and help countries grow sustainably. Unctad's 3rd World Investment Forum (WIF) taking place in Doha from April 20 to 23 will explore the strategies and government polices needed for capturing the SWF potential for the sustainable development, he said.
The Doha summit will see a session exclusively dedicated to debate the investment culture of large government sovereign wealth funds. The debate will cover the role of the Fund, including where and how the huge amount of asset can be used; and also how it can be used for the benefit of inclusive and sustainable development.
Joining the discussions will be global corporate captains, investments agencies and some of the world's biggest SWFs, such as Qatar Investment Authority and the Gulf Investment Corporation. The sovereign wealth fund heavyweights like China, Korea, Indonesia and the UAE would also be attending the session to share their views, he said.
"We are not asking these countries to shove away their money into not-profit making sectors, but asking them to park their money into productive enterprises that would generate jobs that help countries grow by sustainable."
Experts have come out with sustainable development models and where ideally the sovereign wealth funds capitals can be put in good use that would provide a reasonable return in the investment and creating jobs uplifting poor giving opportunities, opportunities to enhance their skills.
According to Kobsak the timing of the Doha summit is very important. The outcome of the summit is expected to influence key international economic summits scheduled to take place shortly after the Unctad XIII.
The G20 trade ministers are meeting in the coming days ahead of the Mexico summit. After the meeting the ministers of the member countires would be coming straight to Doha to attend the Unctad summit. They will reinforce concerns shared at the Doha conference at the June G20 Mexico meet, Kobsak said.
The Doha conference is also expected to witness vigorous discussions on the conclusion of the Doha Round. These discussions are also likely to influence the decisions at the G20, which is expected to witness animated discussions on freeing up the trade finance and conclusion of the ten year old Doha Round discussions.
© The Peninsula 2012
