State-Owned Investors: A Public Policy a

The wealth of a nation enables its decision makers to pursue welfare objectives on behalf of their citizens. How can a country’s wealth be effectively managed to achieve its desired goals? This fundamental inquiry lies at the core of public policy.

Historical circumstances have led many nations to accumulate substantial financial assets or benefit from abundant natural resources. Such wealth presents both significant opportunities and complex challenges. The central task for policymakers in this context is to safeguard the nation’s existing wealth, ensure its sustainable growth, and deploy it effectively to advance key policy objectives.

This course examines a particularly important set of institutional arrangements established by countries to manage national wealth. It identifies the challenges involved in governing the wealth entrusted to State-Owned Investors (SOIs), who are guided by domestic policy priorities while operating within an increasingly complex geopolitical environment. The course engages students in a comprehensive exploration of these issues, beginning with an overview of the forces that led to the creation of SOIs and a brief history of their development. It then deepens the analysis through a study of SOI interactions with the broader domestic public sector and the global community. Finally, it applies key concepts through case studies that illustrate the current role of these institutions both domestically and internationally, offering a practical framework for policymakers seeking to establish or manage SOIs in their own countries.

By developing a strong understanding of the financial and policy dimensions of SOIs, students will be better equipped to engage directly in leveraging national wealth as policymakers in pursuit of welfare goals, or indirectly as market participants operating in a global financial environment where these institutions play an increasingly prominent role.