Sovereign funds are helping strike a new world economic balance

The world has changed greatly over the last ten years. China's economic might is plain to see (the country is now the world's second biggest economy in GDPterms). The country seeks global investment opportunities as an outlet for its vast currency reserves. The Gulf States' old fears of what they will do when the oil runs out have now given rise to action as they attempt to wean their economies off over-dependence on petroleum and natural gas. There are also the countries of South-East Asia, which are determined not to repeat the mistakes of 1997-98 and are building up large currency reserves and healthy balance of payments surpluses.