UN Economist Jomo Sings of Sovereign Wealth Funds, Does Not Publicly Disclose Finances

Byline: Matthew Russell Lee of Inner City Press at the UN: News Analysis

UNITED NATIONS, March 26 -- The UN's view of the subprime lending crisis in the U.S. is that "there may be increased interest in Asia-Pacific's assets... if investors regard markets in the region as having decoupled, at least partly, from the United States." The UN economic and social survey containing this project was unveiled Thursday in New York by Assistant Secretary General Jomo Kwame Sundaram, an economist from Malaysia. Since Mr. Jomo in his briefing mentioned sovereign wealth funds, as does the report, Inner City Press asked Jomo for the UN's view on whether such funds should increase their disclosures and transparency. While referring to a recent U.S. Treasury Department agreement with the funds of Singapore and Abu Dhabi, Jomo said that the UN has no position on sovereign wealth funds and transparency. 

    The report mentions measures to increase transparency, so Inner City Press asked Jomo to explain why, on his putative public financial disclosure form, he left the form blank other than check next to a box, "I have chosen to maintain... confidentiality." Jomo alluded to some litigation in his country, Malaysia, and said that his lawyer advised against making any public disclosure. Secretary-General Ban Ki-moon has urged all of his ASGs to publicly disclose some of their finances, an urging from which Mr. Jomo and some other have "decoupled."

Jomo in the the middle, public financial disclosure not shown

           The report among other things demonstrates the needs of small island states in the Pacific, a grouping which is protesting Secretary-General Ban's move to merge what had been their USG with the Office of the Special Adviser on Africa. The revived protest bring into question whether Secretariat will be forced to re-open the small island states office. Reportedly leading the charge is Bangladesh, which celebrated its national day on Wednesday. Ban's chief of staff was there, along with his USGs for peacekeeping and political affairs. But no Ban, it seems. No man is an island...

     On sovereign wealth funds, the report says that they have "bolstered weakened banking sectors in the United States and Europe...  Notable purchases include equity stakes for the Government of Singapore Investment Corporation in Citigroup and UBS,  for Korea Investment Corporation and Singapore's Temasek Holdings in Merrill Lynch, for the China Investment Corporation in Morgan Stanley and for Temasek Holdings in Barclays." Jomo said that further regulation of or restrictions on sovereign wealth funds are unlikely, since their investments are so needed to bolster subprime-battered banks. 

            On that, the scuttlebutt these days in Turtle Bay is that the UN should have bought Bear Stearns, to get its building on 46th Street and Madison Avenue. The UN will pay an undisclosed sum for merely rent space for five years across the street and 380 Madison. As Jomo could probably advise, it's better to own than to rent...