Atlantic Community:Global Must Read Article "Europe Must Avoid Becoming a Toy for SWFs"

Roland Koch, Minister-President of the state of Hesse | July 1, 2008

Recent shifts in the behavior of key SWF's has led to the fear that state-controlled investors may now be "aiming primarily for strategic rather than purely financial returns." ++ In response, both the IMF and EU Commission are encouraging increased SWF transparency. ++ Transnational investments should be governed by the principle of reciprocity. ++ While protective measures should remain an exception, European nations must not allow themselves "to become the passive economic playthings of other nations, or of big state-owned enterprises."

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Wed, Jul 2nd 2008, 09:27

ilyas m mohsin, ppp, Platinum Contributor (250)

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Mr. Koch has made out a good case for a level playing field for all investors. Nobody can dispute such a recommendation. However, the fact remains that the current arrangements were brought about by lawful protocols etc. moreover, the investors like UAE/ ABU DHABI etc have money to dispense for such investments while the advanced countries
benefit from the same.
The problem appears to invole the economy of scale as well as abrosbtion-capacity of various major actors of the world economy.
Multi-lateral bodies like WTO etc should find an equitable way-out.