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BCIB Launch. Global Trends in Foreign Direct Investment Scale, Developments and Consequences. Hafiz Mirza Professor of International Business Bradford School of Management Chief, Development Issues Division on Investment UNCTAD.
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BCIB Launch Global Trends in Foreign Direct Investment Scale, Developments and Consequences Hafiz Mirza Professor of International Business Bradford School of Management Chief, Development Issues Division on Investment UNCTAD “China is a sleeping dragon. Let it sleep, for when it wakes it will shake the world”.Napoleon
Harbingers of the Future • FDI from Emerging accounts for 15% of Global FDI (up from 5% in 1990) • Emerging economies account for about 25% of all TNCs • In 1990, there were 19 such companies among the Fortune 500; by 2005, the number had risen to 47; and 58 by 2006 • State ownership relatively common compared with developed-country counterparts
Top 20 Developing and Transition Economies (Stock of FDI) US$ Billions Source: UNCTAD, FDI/TNC database
International Expansion in Oil, Gas & Minining 10%+ of Global FDI Oil and gas production of selected TNCs outside their home country, 2005, million barrels of oil equivalent Source: UNCTAD, based on data from IHS
Foreign Production Locations by Oil & Gas TNCs from Emerging Economies 1995 Source: UNCTAD, based on data from IHS
…and in 2005 Source: UNCTAD, based on data from IHS
TNC Involvement in Infrastructure(Billions of US$) 10% of Global FDI
Significant Chinese and IndianInfrastructure Investments in Africa
TNCs • Abide by local laws • Uphold high standards when local governance is weak • Home-country gov’t • Promote responsible TNC behaviour • Assist host countries • Int. Community • Guidelines • Pressure, sanctions • Assist host countries • Civil society • Monitor TNCs and governments • Provide expertise TNC Activities Development Challenges • Host-country gov’t • Governance, institutions • Sectoral policies and institutions • TNC-specific policies (entry and operations, contracts, taxation,IIAs) Making FDI work for sustainable development