Meaning of SOVEREIGNTY

Sovereignty is the exclusive right to complete political (e.g.

legislative, judicial, and/or executive) authority over an area
of governance, people, or oneself. A sovereign is the
supreme lawmaking authority, subject to no other.

Sovereignty in government is that public authority which

directs or orders what is to be done by each member
associated in relation to the end of the association. It is the
supreme power by which any citizen is governed and is the
person or body of persons in the state to whom there is
politically no superior. The necessary existence of the state
and that right and power which necessarily follow is
"sovereignty." By "sovereignty" in its largest sense is meant
supreme, absolute, uncontrollable power, the absolute right
to govern. The word which by itself comes nearest to being
the definition of "sovereignty" is will or volition as applied to
political affairs.

What is a Sovereign Wealth Fund?

Sovereign wealth funds are a by-product of national budget

surpluses, accumulated over the years due to favorable
macroeconomic, trade and fiscal positions, coupled with
long-term budget planning and spending restraint. Usually,
these funds are set up with one or more of the following
objectives: insulate the budget and economy from excess
volatility in revenues, help monetary authorities sterilise
unwanted liquidity, build up savings for future generations,
or use the money for economic and social development.
SWFs are also not a new phenomenon, even if they have
recently gained in prominence. Two of the largest such funds
were founded over 25 years ago – the Abu Dhabi
Investment Authority (ADIA) in 1976 and Singapore’s
Government Investment Corporation (GIC) in 1981.
What Distinguishes Sovereign Wealth Funds from
Official Reserves?