Trust but verify

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: the US and EU-prodded moves to single them out when other investors such as private equity and hedge funds remain not bound by cohesive international regulation. In fact, if the SWFs refuse to budge, there is little Western powers can do. Definitely not when credit crunch and high commodity prices are in vogue.

That SWFs have become a fact of international finance is evident. What is less apparent are transparent rules governing them. Business may yet neutralise politics. But the dictum “trust but verify”, applies here, too.