FDI flow surpasses last records

Kathmandu, August 26:

UNCTAD’s annual survey of global investment trends reports 2007 global foreign direct investment (FDI) flows surpassed previous records, despite the global financial and credit crises.

Subtitled ‘Transnational Corporations and the Infrastructure Challenge’, the report contends that better use of private-sector resources, including those of transnational corporations (TNCs), is required to meet the huge needs of developing countries for infrastructure.

“The developing countries have been in recent years, exporting capital, including to industrialised countries. It is this paradox, which contradicts mainstream economic theory, that UNCTAD economists analyse in the current context of highly volatile commodity prices and the international financial crisis,” states a press release.

Subtitled Commodity prices, capital flows and the financing of investment, the TDR 2008 is a contribution by UNCTAD to the Follow-up International Conference on Financing for Development to Review Implementation of Monterrey Consensus, scheduled on November 29 - December 2, in Qatar.

According to the report on Economic Development in Africa 2008, UNCTAD experts explain why the continent has lost ground in world export markets. Subtitled ‘Export Performance following Trade Liberalisation: Some Patterns and Policy Perspectives’, the 2008 report on Africa says two decades of trade liberalisation have successfully removed many of the barriers that used to limit trade from the continent. But the progress has been less than expected and is far below the increases achieved by other developing regions.