Are Sovereign Wealth Funds a Threat to Australia's National Security?
Abstract
Certain nations are gaining unprecedented wealth from oil and gas revenues and large trade surpluses, and they are investing at unprecedented levels in other countries via Sovereign Wealth Funds (SWFs). SWFs continue to increase rapidly in quantity, size, and reach, placing ownership of domestic industries in the hands of foreign governments. This study investigates whether SWFs are a threat to Australia's national security, either directly by affecting Australian domestic industries, or indirectly by exacerbating corruption and instability in the Asia-Pacific region. Four threat categories are investigated: (1) influence of company plans, (2) geopolitical influence, (3) access to sensitive technology, and (4) the ideological concern of a shift of the free market paradigm. This thesis reveals that most nations want to attract the benefits of SWFs, while safeguarding against the challenges they may bring. The author concludes that SWFs do not meet the definition of a threat to Australia's national security, but they do present complex policy challenges and require monitoring and ongoing management by Australian policy makers.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 12, 2008
- Accession Number
- ADA501914
Entities
People
- Richard I. Mogg
Organizations
- United States Army Command and General Staff College