Business | Economy
Open investment crucial for US economy
Open investment is crucial for the long-term success of the United States, and sovereign wealth fund investment is a very positive force in the American economy, said David McCormick, US Undersecretary of the Treasury for International Affairs.
- By Francis Matthew, Editor at Large
- Published: 00:06 January 24, 2008
Davos: Open investment is crucial for the long-term success of the United States, and sovereign wealth fund investment is a very positive force in the American economy, said David McCormick, US Undersecretary of the Treasury for International Affairs, who said that he held a post in Dubai before he moved back.
"From the US point of view, we need to ensure that such investment continues and we are working with the WTO and other international bodies to establish new rules to ensure transparency for the new sovereign funds which will not harm the funds," said McCormick.
He pointed out that oil wealthy states have every right to diversify, and that they are doing so while moving to use international best practice. He said he was delighted that they are doing so, and he shuddered to think of the impact on the world economy if this capital was not recycled back into the wider economy.
"Since the Dubai Ports World disaster, you have not seen a repeat. Congress has finally begun to realise that the United States needs billions of dollars a day investment to keep afloat," said Fred Bergsten, Director of the Peterson Institute for International Economics.
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