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Global Investment Policy Workshop Competing for FDI – Role of Institutions. Nathalie McGregor Investment Policy and Promotion World Bank Group June 15, 2011. FDI Flows, globally and by groups of economies, 2000 – 2009, Millions of dollars. Data: UNCTAD.
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Global Investment Policy Workshop Competing for FDI – Role of Institutions Nathalie McGregor Investment Policy and Promotion World Bank GroupJune 15, 2011
FDI Flows, globally and by groups of economies, 2000 – 2009, Millions of dollars Data: UNCTAD
FDI inflows by component(Billions of dollars) Cross-border M&A sales and Greenfield projects Source: WIR 2010
FDI in the Current Economic Recession • Recession • Most severe recession since 1929 • Global FDI flows fell 37% in 2009 compared to 2008 • Decline to weak, vulnerable and small country grouping is of particular concern • Recovery • There was no significant growth of Global FDI in 2010 • Q2 decline due primarily to drops in reinvested earnings and intra-company loans • Total FDI in 2010 stay flat at 2009 levels • Business Response • Significant decrease in access to credit • Re-capitalization of banks is taking place in many countries • Lower corporate profits • Leading site selection firms report slowdown and postponement of investment projects • Companies restructuring to deal with the crisis; cautious about recovery • Investment plans frozen or discarded • De-locations and outright plant closures Source: World Investment Report 2010, United Nations Conference on Trade and Development UNCTAD Global Investment Trends Monitor, Issue No. 4, 2010
BetterInvestment Location Image BetterInvestor Services BetterMarketing Investment Jobs Best Practice IPIs Attract More FDI Investment Promotion Intermediary
What Do Top 25 National Performers Have in Common? • 1. Inquiries and leads are taken very seriously • 88% have key account management - single person to handle each lead • 86% screen and prioritize inquiries according to potential value of investment and sector priority • 2. Internal systems are robust and processes are clear • 92% use Client Tracking Systems • 92% have written staff guidelines on how to respond to inquiries • 57% establish fixed time parameters for responding to inquiries [service standards] • 86% have regular staff meetings to update the pipeline • 3. The right staff at the right pay • 76% of staff has private sector experience • 71% of successful IPIs pays staff at over public sector levels • 76% staff stays a maximum of 5 years on the job
Thank you Nathalie McGregor The World Bank Group Tel.:202-473-1243 nlarionov@worldbank.org