Sovereign wealth funds can undermine economic independence  Sovereign wealth funds (SWFs) have become very important players in the global economy. The already exceed the assets controlled by hedge funds and will surpass the stock of global foreign exchange reserves. [1] They are now so big that their activities can shift markets, such as Norway’s Government Pension Fund did when short selling Iceland’s banks, leading to panic and instability when they sell assets suddenly. [2] Their purchases can mean that companies owned by other states can end up dominating the economies of smaller countries, undermining their own sovereignty and economic independence. It is also worrying that many SWFs are controlled by undemocratic states which have a questionable commitment to capitalism; should we allow such states to exercise so much power over our economies?  [1] Lipsky, John, ‘Sovereign Wealth Funds: Their Role and Significance’, 2008,   [2] The Economist, ‘Sovereign Wealth Funds Asset-backed insecurity’, 2008,