SOVEREIGN WEALTH FUND SPEECH THAT NEVER WAS

 

[This hypothetical speech I composed in an hour or two, thanks to ChatGPT, a new cutting-edge AI chatbot. I supplied the facts in hand through instructions and ChatGPT provided detailed responses which fashioned the whole package – as simple as that.]

INSTRUCTION 1

Could you write a speech to lawmakers who propose to put up a Sovereign Wealth Fund, by first, defining it, second, enumerating and explaining the measures to reduce the risk of failure that happened to 1MDB, third, enumerating the socio-political and economic conditions that can increase the likelihood of success, and fourth, comparing the requirements for success against the unfavorable realities?

GDP growth rate is weak, unemployment and inflation rates are high, deficit is always up, foreign exchange reserves is down, and corruption is in the cellar in corruption perceptions index in the region. Hence, advise the lawmakers to rack their brains and never lose track of the saying: "an ounce of prevention (of failure) is worth a pound of cure.”

INSTRUCTION 2

Could you build in the speech that rather than force the issue and spend so much time, effort, and resources in undertaking a Sovereign Wealth Fund which is full of uncertainties, why not focus our attention instead on serving our people who now suffer from lack of proper education, have no adequate shelter along with limited access to electricity, water, and proper sanitation facilities, less access to healthcare, live through the rising cost of food and basic commodities?

The children suffer from malnourishment and many are turning to a life of drug-related crimes to make ends meet. The whole country is flooded with inflation, income inequality, and a lack of job opportunities.

[I added snippets of instructions: begin the speech with Charles Dickens’ famous line, then conclude with a proverbial saying, bad-news-good-news wrap, and Christmas wishes to all.]

CHATGPT GENERATED SPEECH

It was the best of times, it was the worst of times. This famous line from Charles Dickens’ “A Tale of Two Cities” captures the duality of our current situation as we consider the potential risks and challenges of establishing a Sovereign Wealth Fund (SWF).

On the one hand, it is the best of times because it is Christmas time, a season of joy, peace, and goodwill. We have the opportunity to come together as a nation and celebrate the things that bring us joy and hope.

On the other hand, it is the worst of times because we are faced with difficult decisions and complex challenges. We must be mindful of the many factors that could impact its success or failure. I will address these challenges in more detail later in my message.

The 1MDB scandal has shown us the potential risks and challenges of SWF. As we consider the possibility of creating such a fund, we must learn from this experience and put measures in place to reduce the likelihood of failure. But are the socio-political and economic conditions in our country favorable for the success of an SWF, or should we instead focus on addressing the pressing needs of our people? Let us carefully consider the potential risks and challenges, and strive to make the best decision for the future of our country.

SWF is typically created to invest a portion of a country’s surplus revenues from natural resources or foreign exchange reserves in a diverse range of assets, such as stocks, bonds, real estate, or commodities. The main goal of an SWF is to provide a long-term source of income for a country and to support its economy in times of crisis or uncertainty.

However, the 1MDB scandal has shown us the potential risks of managing an SWF. Some of these measures could include greater transparency and accountability in the management of the fund, more rigorous risk management and investment strategies, and stronger oversight from independent regulatory bodies.

For an SWF to be successful, certain socio-political and economic conditions must be present. For example, the country should have a stable and transparent political environment, a sound legal framework, and a well-functioning financial system. Additionally, the fund should be managed by experienced and professional investment managers who have a deep understanding of the markets in which they are investing.

Unfortunately, our current economic situation is not particularly favorable for the success of an SWF. Our GDP growth rate is weak, our unemployment and inflation rates are high. Additionally, we have a large deficit and our foreign exchange reserves are going downhill. Furthermore, our country has been ranked near the bottom in the corruption perceptions index in the region.

Given these unfavorable realities, it may be more beneficial for us lawmakers to focus our attention on addressing the pressing needs of our people. Many of them are suffering from a lack of access to education, healthcare, and necessities such as shelter, electricity, and water. The rising cost of food and other essential goods is making it increasingly difficult for them to make ends meet, and we are seeing more and more children suffering from malnutrition. Additionally, the lack of job opportunities and income equality is driving some of our people to turn to a life of drug-related crime.

Rather than spending so much time, effort, and resources on establishing an SWF with all of its uncertainties, we should focus on serving the people who elected us and addressing their urgent needs.

The proverb says, “A bird in the hand is worth two in the bush.” This saying reminds us that it is often better to hold onto something that is certain, rather than take a risk on something that may or may not pan out. By being cautious and conservative in our decision-making, we can protect ourselves from potential losses and disappointments.

As we come to the end of my message, I have some good news and bad news. The bad news is that I am assigning you all this SWF homework to take with you when you leave this august hall. The good news is that it is Christmas time, and this is a season of joy, peace, and goodwill. Let us remember the true spirit of Christmas and strive to make a positive difference in the lives of those around us. Wishing you all a Merry Christmas and a happy and prosperous New Year!

Head still photo courtesy of pixabaydotcom