Restricting SWFs is protectionism  Restricting the activities of sovereign wealth funds is a form of protectionism, which is itself likely to stimulate further demands for barriers against globalisation. Western countries oppose protectionism when it is from other countries preventing western companies investing so it would be hypocritical to want protectionism against those same countries buying the firms that want so much to invest in emerging markets. [1] It should be remembered that almost 40% of SWF assets are controlled by SWFs from advanced industrialised states. [2] As a result SWF investments abroad contribute to greater economic openness around the world. By exposing emerging economies and authoritarian states to developed world standards of transparency, meritocracy and corporate social responsibility, they will help to spread liberal values and raise standards. They will also give many more nations a stake in international prosperity through trade, encouraging cooperation rather than confrontation in foreign policy, and giving a boost to liberalising trade deals at the WTO. Finally as with all protectionism there is the risk that the SWFs will pull out their wealth and not invest as a result of protectionism resulting in lost jobs or jobs that would otherwise be created going somewhere more hospitable to SWFs. [3]  [1] The Economist, ‘The rise of state capitalism’, 2008.   [2] Drezner, Daniel W., ‘BRIC by BRIC: The emergent regime for sovereign wealth funds’, 2008, p.5.   [3] Ibid, p10