Pension Fund Engagement Chances and Limitations
نویسنده
چکیده
In this paper the growing salience of what is called ‘pension fund engagement’ is critically assessed by means of a reconstruction of the failure of the Swedish Wage Earner Funds. The outcome of this assessment is sobering. Even under optimal political conditions pension savings proved to be too unwieldy to have any impact on the ownership structure of large publicly quoted corporations. Apparently the logic of funded pension arrangements is such that the chances for active engagement are minimal, largely explaining the marginal amount of pension savings actually invested in socially responsible ways. The second part of the paper is an exercise in institutional design. I propose a Fund for Economic Development, financed from the surpluses of regular pension funds, and largely organized as a ‘classic’ venture capital provider, as an alternative form of engagement. In this manner, so I argue, the fiduciary duties of regular pension funds can be taken seriously, while at the same time there will be sufficient mass behind the construction of an alternative investment infrastructure, including reconstructed concepts of ‘risk’ and ‘return’, that in the long run the monopoly of the mainstream financial industry on the definition of economic rationality stands a chance to be broken. As such, this attempt squarely stands within the tradition of ‘realist utopianism’.
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تاریخ انتشار 2003