Uncertainty has become the new constant in a new world marked by geopolitical and geoeconomic sensitivities.
As the second decade of the 21st Century closes in, we are surely facing new unforeseen economic, social, political and technological challenges. However, this presents a great opportunity for Sovereign Wealth Funds to take over the mission of inclusive growth so shamefully managed by governments.
As safekeepers of a country’s equity, their roles can be further enhanced in order to redesign the failed Social Contract and democratizing the investment driven growth of their equity. That is, sharing part of the dividends derived from its investments directly into the pockets of the citizens of a country, instead of disbursing it all to their respective governments.
The corporate governance of Sovereign Wealth Funds, would restrict funds to be channeled “for other uses” as is the case with selfish, egocentric goverments ran by politicians looking for their own monetary self-interest.
Sovereign Wealth Funds could also fill the void of the defaulted social contract by setting aside a small percentage of their capital to fund modern schools, better hospitals, or even scholarships for the poor in careers that would benefit from the Fourth Industrial Revolution.
The poor will then embrace a shared capitalist, truly democratic system when they at least have some direct ownership in a portion of their country's earnings, feeling the extra income directly, left free to be used towards a better quality of life which politicians have failed so miserably to provide.
picture source: http://www.no-zaku.com/picture-4
