Under the theme "Non-Equity Modes of International Production and Development", the report focuses on global and regional trends in foreign direct investment and related policy developments at the national and international levels. The theme for last year's report was "Investing in a low-carbon economy". The 2011 edition of the World Investment Report focuses on the strategic use of non-equity modes by transnational corporations (TNCs) in their management of global value chains and international operations. According to the report, developing economies increased further in importance in 2010, both as recipients of FDI and as outward investors. Mauritius, for instance, attracted a record level of FDI in 2010, amounting to nearly Rs 14 billion. The country also carried out outward investment.
As international production and, recently, international consumption shift to developing and transition economies, TNCs are increasingly investing in both efficiency- and market-seeking projects in those countries. For the first time, they absorbed more than half of global FDI inflows in 2010. Half of the top-20 host economies for FDI in 2010 were developing or transition economies. Global foreign direct investment (FDI) has not yet bounced back to pre-crisis levels, though some regions show better recovery than others. The reason is not financing constraints, but perceived risks and regulatory uncertainty in a fragile world economy.
The Report forecasts that FDI flows will recover to pre-crisis levels over the next two years, if there is no further global economic shock. The challenge for the development community is to make this anticipated investment have greater impact on our efforts to achieve the Millennium Development Goals. The report further highlights that FDI inflows to Small Island Developing States (SIDS) dropped marginally by less than 1 per cent, to $4.2 billion in 2010 following a 47 per cent decline in 2009. The largest five recipients of FDI in this special grouping of structurally weak economies were Bahamas, Trinidad and Tobago, Mauritius, Seychelles and Timor-Leste (South-East Asia), with inflows ranging between $977 million and $280 million. FDI inflows in SIDS have traditionally been concentrated in extractive industries and services, including hotels and tourism, financial services and real estate. In 2010, there were a number of greenfield investments in these industries. The Maldives accounted for most of the large projects in hotels and tourism, as well as in other services, while Papua New Guinea hosted a major share of large mining projects. The report notes two investments in manufacturing in Mauritius: one undertaken by Pick n Pay (South Africa) in the food industry, and the other by Mango (Spain) in textiles.
As international production and, recently, international consumption shift to developing and transition economies, TNCs are increasingly investing in both efficiency- and market-seeking projects in those countries. For the first time, they absorbed more than half of global FDI inflows in 2010. Half of the top-20 host economies for FDI in 2010 were developing or transition economies. Global foreign direct investment (FDI) has not yet bounced back to pre-crisis levels, though some regions show better recovery than others. The reason is not financing constraints, but perceived risks and regulatory uncertainty in a fragile world economy.
The Report forecasts that FDI flows will recover to pre-crisis levels over the next two years, if there is no further global economic shock. The challenge for the development community is to make this anticipated investment have greater impact on our efforts to achieve the Millennium Development Goals. The report further highlights that FDI inflows to Small Island Developing States (SIDS) dropped marginally by less than 1 per cent, to $4.2 billion in 2010 following a 47 per cent decline in 2009. The largest five recipients of FDI in this special grouping of structurally weak economies were Bahamas, Trinidad and Tobago, Mauritius, Seychelles and Timor-Leste (South-East Asia), with inflows ranging between $977 million and $280 million. FDI inflows in SIDS have traditionally been concentrated in extractive industries and services, including hotels and tourism, financial services and real estate. In 2010, there were a number of greenfield investments in these industries. The Maldives accounted for most of the large projects in hotels and tourism, as well as in other services, while Papua New Guinea hosted a major share of large mining projects. The report notes two investments in manufacturing in Mauritius: one undertaken by Pick n Pay (South Africa) in the food industry, and the other by Mango (Spain) in textiles.
*source: http://www.defimedia.info/
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