Columbia International Affairs Online: Policy Briefs

CIAO DATE: 03/2014

Implementation of the Santiago Principles for Sovereign Wealth Funds: A Progress Report

Edwin M. Truman

December 2013

Peterson Institute for International Economics

Abstract

In October 2013, the International Forum of Sovereign Wealth Funds (IFSWF) released its second evaluation of progress by sovereign wealth funds (SWFs) in implementing the Santiago Principles of transparency and accountability. The report, Truman says, exaggerates the extent of implementation of the principles by SWFs associated with the IFSWF. It states that all of the funds participating in the survey have implemented each of the Santiago Principles at least partially, which is contrary to research conducted by Truman. A number of the SWFs associated with the IFSWF register very low on his SWF scoreboard and have shown little improvement. The 2013 IFSWF report does not provide the impetus necessary to promote more extensive adherence to and implementation of the principles by members and nonmembers of the IFSWF, which should be the goal of the forum.