Private foreign investment in the poorest countries
Date
2003
Authors
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Journal ISSN
Volume Title
Publisher
The North-South Institute, Ottawa, CA
Abstract
On March 24, 2003, 55 people gathered at the Wilton Park conference facility in Sussex,
England,1 to look for ways private foreign investment can contribute more to growth and
development in the poorest countries.2 Some of these people came from developing
countries, where they work for government, private businesses, including some owned
by foreigners, and non-governmental organizations (NGOs). Others came from
international businesses. Still others came from governments and development agencies
in rich countries, the World Bank and universities.
The group reviewed patterns of private foreign investment since the beginning of
the 1990s and shared knowledge about, and experience with, its impact in poor
countries. It identified the key influences on foreign investment, and evaluated the main
initiatives taken to both increase investment in poor countries and improve its
contribution to development.
The analysis and recommendations presented here are inspired by the Wilton Park
discussions. Some of the perspectives and conclusions are well-understood and firmly
rooted in experience, though not necessarily reflected in the policies of official
development agencies, lending institutions, or poor country governments. Others are
more speculative, and not universally agreed either at the conference or among the
broader investment and development communities. These are all issues that pre-occupy
those searching for answers for poor countries.
The issue of private foreign investment is particularly topical in view of the
discussions taking place at the World Trade Organization (WTO). At the Cancun
Ministerial meeting in September 2003 many developed member countries, including
Canada, as well as some developing countries, favour the negotiation of an international investment agreement that would aim at facilitating private foreign investment in the
developing world. Several developing countries, however, are not convinced that
multilateral rules limiting their capacity to discriminate in favour of their domestic firms
would stimulate further foreign investment flows and contribute to national
development efforts. They are also concerned about maintaining their regulatory
authority over foreign as well as domestic firms.
Description
French version available in IDRC Digital Library: L’investissement étranger privé dans les pays les plus démunis
Available on the web at: www.nsi- ins.ca
Available on the web at: www.nsi- ins.ca
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Working Paper
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Keywords
FOREIGN INVESTMENT, PRIVATE SECTOR, INTERNATIONAL FINANCE, FINANCIAL ANALYSIS, FINANCIAL POLICY, CAPITAL MOVEMENTS, DEVELOPMENT AID, POVERTY ALLEVIATION