The SWFS : Changing Relations with Stakeholders

The author considers SWFs from the perspective of their changing relations with internal and external stakeholders, and the importance of transparency, accountability and better communication. It discusses how the management of stakeholder relations has become central to the trust in – and legitimacy of – the funds, and helps to reduce uncertainty over their behavior and motives, and the impetus for SWFs to evolve their relations with both sets of stakeholders, and a range of initiatives used to strengthen these relations. The author also examines the benefits and drawbacks of implementing the Santiago Principles on accountability and transparency, and shows how multilateral institutions such as the IMF can encourage better communication and understanding between the SWF sponsoring and recipient countries. The chapter argues that the principles should be implemented in a consistent way so that accountability and transparency have more of a chance to be integrated into operating procedures