Examining wealth fund applications in the world and the effects of Türkiye Wealth Fund on the public financial system

Sovereign wealth funds, established to invest some of a country's financial resources (typically revenues from natural resources, foreign exchange reserves, or budget surpluses) in long-term investments and contribute to the country's economic stability, have been seen to play an increasingly important role in the global economy in recent years. Turkey Wealth Fund (TWF) has been one of the recent significant examples of these new generation financial instruments, which have gained a critical position in countries' economic development strategies and international investment policies. The main purpose of this study is to examine sovereign wealth fund practices worldwide, investigate the effects of TWF on Turkey's public financial system, and obtain suggestions that will contribute positively to this interaction. The study aims to reveal the role and importance of these financial instruments in the global economy by addressing the historical development, structures, and functioning of sovereign wealth funds. Another aim of the research is to evaluate the place and potential effects of the fund in the Turkish economy by examining in detail the establishment process, objectives, management structure, and activities of TWF. In this context, it is aimed to determine the strengths and weaknesses of the fund by comparing TWF with successful sovereign wealth fund examples in other countries. The final goal of the study is to examine the effects of TWF on Turkey's public financial system from various aspects. In this context, the effects of the fund on macroeconomic indicators, monetary and fiscal policies (public expenditures, revenues, and borrowing) are emphasized. In addition, TWF is evaluated in terms of transparency, accountability, and audit mechanisms, revealing the potential risks and opportunities of the fund on public financial management. Thus, it is aimed to provide suggestions to increase TWF's contribution to the Turkish economy and minimize its possible negative effects. The study consists of three main sections. In the first section, the historical development of sovereign wealth funds, their purposes, and their role in the context of global crises are discussed. The second section evaluates sovereign wealth fund practices worldwide, success criteria, and international standards. In the final section, TWF is examined in detail, covering many aspects from its establishment to organizational structure, from financial principles to portfolio management, and the effects of TWF on the public financial system are analyzed. The data obtained as a result of the study reveal the necessity of evaluating the approaches towards Turkey Wealth Fund with a critical perspective, free from prejudices. In the study, considering the power analysis shaped within the framework of the concept of "asabiye" developed by Ibn Khaldun in his work "Muqaddimah," the risk of political power corruption over time has been taken into account. Therefore, the need to evaluate all possibilities and implement the necessary measures has been emphasized. The research presents the prediction that constructive criticisms and contributions directed to TWF will gradually eliminate current uncertainties and problems, as in the "leaky bucket" metaphor. This metaphor points to the potential of positive contributions to the Fund to end (or reduce) current problems and criticisms directed at the Fund, just as clean water added to the bucket gradually reduces the turbidity inside. In this framework, the results of the study emphasize that both a constructive approach should be adopted and caution should be exercised against potential risks in the development and improvement process of Turkey Wealth Fund. This balanced approach is critical for the long-term success of the Fund and the optimization of its contribution to the country's economy. It has been concluded that TWF has the potential to make significant contributions to the country's economy if the recommendations addressed and systematically presented within the scope of the research are implemented. These recommendations cover critical issues such as strengthening the fund's governance structure, improving audit, transparency and accountability mechanisms, developing risk management strategies, and increasing compliance with international standards. On the other hand, the study also emphasizes that if the proposed improvements are not implemented, the Fund carries the risk of creating serious negative effects on Turkey's public financial system. In this context, it has been emphasized that lessons should be learned from Turkey's past experiences and problems experienced in public financial management should not be repeated. Therefore, it has been concluded that the success of TWF and its potential contribution to the country's economy largely depend on the effective implementation of the reforms proposed in the study and the continuous improvement of the fund. Key Words: Sovereign Wealth Funds, Türkiye Wealth Fund, Public Financial System, Transparency, Accountability, Audit, Santiago Principles, Economic Stability, Strategic Investment.