The state as institutional investor: unpacking the geographical political economy of sovereign wealth funds

Author(s):  
Adam D. Dixon
2021 ◽  
pp. 1-11
Author(s):  
Mark Thatcher ◽  
Tim Vlandas

This introductory chapter offers an overview of the book. It identifies the growing size and importance of overseas state investors and how they challenge current political economy analyses of the state. The phenomenon is well illustrated by Sovereign Wealth Funds (SWFs): state-owned investment bodies, often from Asia and the Middle East, that have bought shares in major firms in strategic sectors ranging from finance to communications and transport, as well as landmark buildings. The chapter presents the puzzle of the widespread acceptance of SWF investments: national responses to SWF purchases might have been expected to be hostile, especially as they represent entry into Western stock markets by non-Western overseas states. Yet many Western governments have accepted and often actively encouraged SWF investments, seeing them as an additional means to govern their domestic economies and pursue their political strategies. The chapter then situates this puzzle in the wider political economy literature on the role and power of the state in an increasingly internationalized economy. It argues that recent political economy works focus on the internationalization of private capital, ignoring the capacity of the state itself to become a cross-border economic actor. It summarizes the book’s findings that several Western governments have engaged in internationalized statism, underlining that the patterns of policy differ sharply from those that might be expected given popular and academic views of economic openness.


Author(s):  
Gordon L. Clark ◽  
Adam D. Dixon ◽  
Ashby H. B. Monk

This chapter asks what is the “sovereign” in sovereign wealth funds (SWFs)? More specifically, how can we interpret the SWF phenomenon without succumbing to classical notions surrounding the territorial status of sovereignty and of political economy? The first section discusses sovereignty in theory and in practice, and in relation to SWFs; it also includes a theoretical grounding for the primary contribution of the chapter in the second section. This is a stylized typology of SWFs in relation to the state and its sovereignty. It comprises five ideal-types: postcolonialist, rentier, productivist, territorialist, and moralist. This typology does not seek to replace the more conventional classifications or typologies of SWFs based on their source funding or the explicit a priori objectives of the sponsor. Rather, it is historical shorthand designed to provide an understanding of the long-term significance of SWFs and the factors that might underpin further development of new SWFs in different countries. The different typologies are illustrated with reference to different SWF cases in the following chapters of the book.


Author(s):  
Topher L. McDougal

In some cases of insurgency, the combat frontier is contested and erratic, as rebels target cities as their economic prey. In other cases, it is tidy and stable, seemingly representing an equilibrium in which cities are effectively protected from violent non-state actors. What factors account for these differences in the interface urban-based states and rural-based challengers? To explore this question, this book examines two regions representing two dramatically different outcomes. In West Africa (Liberia and Sierra Leone), capital cities became economic targets for rebels, who posed dire threats to the survival of the state. In Maoist India, despite an insurgent ideology aiming to overthrow the state via a strategy of progressive city capture, the combat frontier effectively firewalls cities from Maoist violence. This book argues that trade networks underpinning the economic relationship between rural and urban areas—termed “interstitial economies”—may differ dramatically in their impact on (and response to) the combat frontier. It explains rebel predatory tendencies toward cities as a function of transport networks allowing monopoly profits to be made by urban-based traders. It explains combat frontier delineation as a function of the social structure of the trade networks: hierarchical networks permit elite–elite bargains that cohere the frontier. These factors represent what might be termed respectively the “hardware” and “software” of the rural–urban economic relationship. Of interest to any student of political economy and violence, this book presents new arguments and insights about the relationships between violence and the economy, predation and production, core and periphery.


1989 ◽  
Vol 48 (4) ◽  
pp. 787-797 ◽  
Author(s):  
Akhil Gupta

Economists and political scientists have become increasingly interested in the political economy of India during the past decade and particularly during the past three or four years. The titles under review will be valuable not only to India specialists but also to comparative scholars because of the intriguing mix of conditions found in India. More like a continent than a country in its diversity, India is in some ways very similar to densely populated, predominantly rural and agricultural China, differing most perhaps in the obstinacy and depth of its poverty. In the predominant role played by the state within an essentially capitalist economy, it is closer to the model of Western social democracies than it is to either prominently ideological capitalist or socialist nation-states; like other countries in the “third world,” the state in India plays a highly interventionist developmental role. Finally, since Independence it has pursued, more successfully than most nation-states in Latin America and Asia, policies of importsubstituting industrialization and relative autarchy. In terms of its political structures, India differs from most newly industrialized countries (NICs) in that it generally continues to function as a parliamentary democracy. The federal political system creates an intriguing balance of forces between central and the regional state governments, which are often ruled by opposition parties with agendas, ideologies, and organizational structures quite different from those of the central government.


2014 ◽  
Vol 56 (3) ◽  
pp. 681-713 ◽  
Author(s):  
Katherine Bowie

AbstractDespite a growing literature revealing the presence of millenarian movements in both Theravada and Mahayana Buddhist societies, scholars have been remarkably reluctant to consider the role of messianic beliefs in Buddhist societies. Khruubaa Srivichai (1878–1938) is the most famous monk of northern Thailand and is widely revered as atonbun, or saint. Althoughtonbunhas been depoliticized in the modern context, the term also refers to a savior who is an incarnation of the coming Maitreya Buddha. In 1920 Srivichai was sent under arrest to the capital city of Bangkok to face eight charges. This essay focuses on the charge that he claimed to possess the god Indra's sword. Although this charge has been widely ignored, it was in fact a charge of treason. In this essay, I argue that the treason charge should be understood within the context of Buddhist millenarianism. I note the saint/savior tropes in Srivichai's mytho-biography, describe the prevalence of millenarianism in the region, and detail the political economy of the decade of the 1910s prior to Srivichai's detention. I present evidence to show that the decade was characterized by famine, dislocation, disease, and other disasters of both natural and social causes. Such hardships would have been consistent with apocalyptic omens in the Buddhist repertoire portending the advent of Maitreya. Understanding Srivichai in this millenarian context helps to explain both the hopes of the populace and the fears of the state during that tumultuous decade.


2015 ◽  
Vol 52 (4) ◽  
pp. 408-425
Author(s):  
Ken McDonagh ◽  
Yee-Kuang Heng

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