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Philanthropist and Microsoft co-founder Bill Gates called on Norway's $800 billion oil fund, one of the biggest investors in the world, to spend more in the poorest countries where little private money reaches.
Gates, who runs the $37 billion Bill and Melinda Gates Foundation, said Norway should set aside a portion of the fund to invest in infrastructure in sub-Saharan Africa and Asia, and buy equity in small enterprises that alleviate agricultural and medical problems.
"Norway is by many measures one of the richest countries in the world and you can afford to take some of that money and help out people in other places," Gates said on a visit to Oslo before meeting top government officials.
Norway is working on a complete review of the fund, including its investment strategy. Critics say it has become too big and needs to diversify away from stocks, bonds and real estate, and may even need to be broken up into specialised vehicles.
Gates argued that spending in poor countries, primarily on roads, rail and power, would be an investment, not a donation, as it would generate returns over time, even as the spending had a dual role of generosity.
"The area where you may get this dual benefit is ... in sub-Sahara Africa and some of the countries in Asia," Gates said. "That's an asset class, which could absorb, if it was well managed, an additional $10 billion... I'm not talking about a gigantic amount."
Norway has amassed the world's biggest wealth fund, saving up its surplus oil revenues, and operates it as a sort of endowment, spending only its returns. It is expected to exceed $1 trillion this decade and already owns about 1.25 percent of all global equities, a huge amount for a country of 5.1 million.
Speaking at the same event, Finance Ministry State Secretary Jon Gunnar Pedersen told Gates that the fund would be expanding investment in developing markets but stopped short of endorsing Gates' ideas.
"There's no doubt in my mind that a larger part of not only our investments but all investments will and should move into frontier markets with less developed markets