Sovereign Wealth Funds: Foreign Cash has its Drawbacks |
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April 26, 2011
State-backed investments into Latin America are set to increase, as developing countries act to secure natural resources, providing the region with a vital source of revenue but also stirring political tensions.
State-backed investments into Latin America are set to increase, as developing countries act to secure natural resources, providing the region with a vital source of revenue but also stirring political tensions. For the largely barren Gulf states and parts of Asia, Latin America is both a rich and relatively accessible source of the commodities they need to feed their people and a way to translate their wealth into economic development. However, the fight for these resources is likely to become more cut-throat, with water scarcity limiting food supplies as the global population continues to grow. Fearing for their future food security, Arab and Asian countries have increasingly used sovereign wealth funds to secure resources and land in Latin America, sometimes funnelling money through the private sector to bypass local regulations.
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