Geopolitical and Geo-Economic Analysis of the S.W.F. Issue

The objective of this study is to analyse the Sovereign Wealth Fund (SWF) issue from a geopolitical and geo-economic point of view. The role of the rapidly increasing financial leverage power of SWFs has to be considered beyond classical approaches of economics and market theories. In order to understand the strategic motivations of states controlling these funds, it is important to take into consideration geopolitical and geo-economic perspectives. In recent years SWFs have been growing rapidly due to imbalance in global trade relations and the shift of geopolitical and geo-economic power from the West to East. Concerns about SWFs have been growing in the West due to increasing geopolitical and geo-economic influence of these funds. As matter of fact, Sovereign Wealth Funds can be considered as important strategic instruments to improve power positions of states disposing these funds in the international system.