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On the eve of the global financial crisis, sovereign wealth funds were the subject of heated debate. Proponents saw them as a useful source of capital; critics saw them as a means for foreign governments to control important sectors of the economy. Amidst the crisis, the debate dissipated, but the
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sovereign wealth funds did not. Investments by sovereign funds have been on the rise. Protectionist sentiments against these entities may lead to violations of international economic legal obligations with severe diplomatic and legal consequences. How should host countries respond? What did we learn from the previous market cycle about how to balance open markets and national security concerns?
At this event, leading experts discussed the economic and legal merits of sovereign wealth fund investments and the likely policy landscape in which they will operate. Panelists include Efraim Chalamish, Global Fellow at the New York University Law School; Clay Lowery, managing director of the Glover Park Group; and David M. Marchick, head of external affairs at the Carlyle Group. AEI resident scholar Philip I. Levy moderated.
| 8:45 a.m. |
Registration |
|
| 9:00 |
Panelists: |
Efraim Chalamish, New York University Law School |
| Clay Lowery, Glover Park Group |
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| David M. Marchick, Carlyle Group |
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| Moderator: |
Philip I. Levy, AEI |
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| 10:30 | Adjournment |
Speaker biographies
Efraim Chalamish is an international law scholar and practitioner. He is a Global Fellow at New York University, exploring international investment arbitration, global governance and financial regulation, and the intersection of business and national security. He has been involved in international legal practice in New York, Paris, and Israel, as well as in research and analysis of cutting-edge areas in public and private international law. His articles have been published in leading journals and magazines in the Unites States and Europe, including in the European Journal of International Law. He is the founder and president of the Global Center for Economic Development and Security. Mr. Chalamish has served as an adjunct or visiting professor at several academic institutions, including the University of Fribourg in Switzerland. He is the United Nations representative of the International Association of Jewish Lawyers and a member of the American Bar Association, New York State Bar, American Society of International Law, and the Society of International Economic Law.
Philip I. Levy, a resident scholar at AEI, studies international trade and development. Before joining AEI, he handled international economic issues as a member of the U.S. secretary of state's policy-planning staff (2005–2006), was senior economist for trade on the President's Council of Economic Advisers (2003–2005), and was a faculty member in Yale University's department of economics (1994–2003). An economist by training, he has experience researching and writing about many international trade and development policy issues, including free trade agreements, trade with China, antidumping policy, welfare effects of globalization, U.S. foreign assistance policy, and economic development policy.
Clay Lowery is a managing director with the Glover Park Group. He is also an adjunct professor of international finance at Georgetown University. Previously, Mr. Lowery served as the assistant secretary for international affairs at the U.S. Treasury Department from 2005 to 2009. As assistant secretary, Mr. Lowery chaired the Committee on Foreign Investment in the United States, which reviews international mergers and acquisitions to determine how such transactions affect U.S. national security. He was the government's point person on the activities of sovereign wealth funds , and he oversaw the negotiation of investment principles for sovereign wealth funds at both the International Monetary Fund and the Organization for Economic Co-operation and Development. During this time, he served as the Finance Deputy and Deputy Deputy to the G20, the G7, and the Financial Stability Forum. He has also served as the acting undersecretary for international affairs, and he has been appointed by the president at various times to be the U.S. representative to the boards of the World Bank, the African Development Bank, the European Bank for Reconstruction and Development, and the Inter-American Development Bank.
David M. Marchick serves as managing director and global head of external affairs at the Carlyle Group and serves as a member of the firm's operating committee. In this position, Mr. Marchick leads the firm's group that provides government affairs, public affairs, regulatory, and strategic advice to Carlyle's buyout, growth, real estate, and leveraged finance funds on a global basis. He also serves on the board of directors of Sequa Corporation. Prior to joining Carlyle, Mr. Marchick was a partner and vice-chair of the international practice group at Covington & Burling. He is an expert on foreign investment and national security issues. Mr. Marchick is the coauthor of U.S. National Security and Foreign Direct Investment (Institute for International Economics, 2006), and his work has been published in numerous publications, including the Financial Times, the Wall Street Journal, and the Far Eastern Economic Review. He has testified frequently before Congress. Prior to joining Covington & Burling in 2002, Mr. Marchick worked on Bill Clinton's 1992 presidential campaign and served in four departments-the White House, the office of the U.S. Trade Representative, and the Departments of State and Commerce-over seven years in the Clinton administration. While at the White House, he helped coordinate the administration's efforts to secure passage of the North American Free Trade Agreement and to establish the World Trade Organization. He is also a member of the Council on Foreign Relations.



