THE RISING KUBERS OF THE EAST

"Sixty years ago, we-conducted a painful, expensive and accidental experiment called the Great Depression, with the Smoot Hawley tariffs to teach us the value of free trade. Let us not subject ourselves to another painful lesson in the value of direct investment and the free flow of capital by driving SWFs away", wrote Stephen Schwarzman (ch:airman & CEO of Blackstone) in an article, June 19, 2008, Reject sovereign wealth funds at your peril, Financial Times, was a naked·expression and sheer appreciation of the massive changes encompassing financial landscape introduced by Sovereign wealth funds (SWFs). Call it a sinister or an angel of ministration, sovereign wealth funds has been an earth-shattering reallty to the capitalist fraternity. The recent recapitalization of the highly illustrious Wall Street banks by SWFs can just be pronounced as the spectacular emergence of the state run funds, which have become the new inflection point of globalization. This capitalist shakeout is also perceived as the birth of a new phenomenon called cross-border nationalization in some circles, however, in other spheres it is looked upon as a robust stabilizing force on the global financial front. There exists an air of suspicion, confrontation, and consternation, which is coated with unverified and unconfirmed fears.of seizure and monopolization. This article will voice out the well structured concerns attested by the west, along with the rock-solid bolstering, which the SWFs can promise, and eventually analyzing India's response to this watershed moment of global finance. So read on and determine whether these Eastern Kubers, (read as: SWFs) qualify to be the new flag-ship of the globalization or are regenerated apostles ofimperialism.