This news has a big impact on economy of the Philippines because it could lead to increased foreign
direct investment and capital inflows. This can provide a boost to the Philippine economy, create jobs,
and stimulate economic growth. Sovereign wealth funds are often used to diversify a country's
investment portfolio. By allocating funds to a wide range of assets and industries, the Philippines may
reduce its dependence on a single sector and decrease economic vulnerability to external shocks. In
addition, Some sovereign wealth funds are established with a focus on financing infrastructure projects.
If this is the case, it could lead to the development of critical infrastructure in the Philippines, which can
improve logistics, connectivity, and overall economic competitiveness. Lastly, the sovereign wealth
funds can be used to stabilize government finances and support future generations. By saving a portion
of revenues from sources like natural resources or investments, the government can better manage
fiscal stability and provide for future generations.
Management and Governance: The success of a sovereign wealth fund largely depends on its
management and governance. Proper governance structures and transparency are essential to prevent
issues such as corruption or mismanagement of funds.
Good afternoon ma'am, I'm Faviolla Tangonan from PCBEA-01-501E. Here is my second assignment on
economic development. Thank you, and have a wonderful day!