Enhancing control over state: What is the Sovereign Fund proposed by Albin Kurti?

Enhancing control over state: What is the Sovereign Fund proposed by Albin Kurti?

One of the words most used by Vetevendosje candidate for prime minister, Albin Kurti, in opening his economic programme is that of the Sovereign Fund. Kurti has said this Fund would replace the Kosovo Privatisation Agency, but being flawed in its explanations. Sovereign Fund, also known [...]

The Sovereign Fund, also known as the Sovereign Investment Fund or the Social Riches Fund, is a state-owned investment fund that invests in financial and real assets such as stock exchanges, real estate, precious metals or other ones.

Most of the world's sovereign funds are financed by revenues from luxury exports or from the reserves of foreign trade exchanges made by the Central Bank, writes Periscope.

It is the Central Bank that holds several Sovereign funds that accumulate funds from the country's banking management course.

But, the growth of the Sovereign Fund has raised a series of major concerns among economists. The first is their potential impact on various commercial assets. There is also concern that the Sovereign Fund raises concerns about national security because of the investment goal of securing control of important industries for political rather than financial benefits.

The problem with the Sovereign Fund is also seen as non-adequate transparency, such as hiding the size or source of funds, investment goals, domestic responsibility and balance, etc.

In the case of Kosovo's economy, this fund could jeopardise the country's growth of 4.5% and serve as just another area where misuse would be exercised. Besides, you don't think this country's investment impact would be completely insignificant.

Mr. Kurti continues to offer no serious ideas to boost the country's economy and translate this growth into civic prosperity. In addition, in terms of economic policies, the two economists of this Movement, Iron Murati and Besnik Bislimi, have been declared right in full disagreement with what the Vetevendosje Movement, left politics, engages in. /Periscope

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