1 Maximizing Autonomy in the Shadow of Great Powers: The Political Economy of Sovereign Wealth Funds KYLE HATTON* & ... Maximizing Autonomy in the Shadow of Great Powers: The Political Economy of Sovereign Wealth Funds KYLE HATTON* & KATHARINA PISTOR**Abstract: Sovereign wealth funds (“SWFs”) have received a great deal of attention since they appeared as critical investors during the global financial crisis. Reactions have ranged from fears of state intervention and mercantilism to hopes that SWFs will emerge as model long-term investors that will take on risky investments in green technology and infrastructure that few private investors are willing to touch. In this paper we argue that both of these reactions overlook the fact that SWFs are deeply embedded in the political economy of their respective sovereign sponsors. This paper focuses on four political entities that sponsor some of the largest SWFs worldwide: Kuwait, Abu Dhabi, Singapore and China. Each of them has been governed f...
