Geneva, Switzerland, 2 May 2011
The contents of this press release and the related Report must not be quoted or
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Although investment in the least develop countries has climbed, the sketch says, it has limited impingement on jobs, living standards Geneva, 2 May 2011 – A new UNCTAD report on the status of foreign mastermind investment ( FDI ) in the world´s 48 poor countries urges a changed approach that would focus such investment on creating jobs, deoxyadenosine monophosphate well as on enhancing those countries´ fat capacities – that is, their abilities to produce wider varieties of goods and more sophisticate goods.
The report, titled Foreign Direct Investment in Least Developed Countries: Lessons Learned from the Decade 2001-2010 and the Way Forward, is intended to contribute to debate at the Fourth United Nations Conference on the Least Developed Countries ( LDCs ) adjacent week in Istanbul. It notes that while FDI to these nations grew quickly over the ten to reach an calculate $ 24 billion in 2010 and their share of ball-shaped alien investment flows has effectively doubled to 2 %, most in terms of value was dedicated to natural-resource extraction. That sector has tended to create relatively few jobs, the discipline says. such investment besides has not tended to “ fertilize ” LDC economies by leading to greater links between foreign businesses and local firms that can spread know-how and engineering and help spur broad-based, long-run economic increase. Although FDI has recently enabled some LDCs to connect with the global rate chain in which products are upgrade and reap higher profits, the majority of LDCs remain marginalized from the world economy, the report says. Among other things, the study recommends the institution of an “ LDC infrastructure development fund ” that would improve these countries´ abilities to attract investment by upgrading such factors as electricity provide, roads, railroads and calculator or Internet connections. Such a fund would seek to provide “ innovative ” solutions to infrastructure weaknesses by establishing public-private partnerships between LDCs and foreign investors. It besides calls for an aid-for-productive-capacities program that would support technical and vocational trail, education and entrepreneurship in LDCs. The captive is to provide LDC populations with skills that can attract extraneous investment and spur sustainable economic progress. The report card recommends that LDC governments and overseas development partners boost efforts to attract small- and medium-scale international investors – a group that frequently finds and exploits hidden commercial enterprise opportunities. It says that LDC governments should develop strategies and provide incentives to target opportunities where investors can use engineering to “ leapfrog, ” as is already happening in telecommunications with the rapid development of mobile telecommunication networks and with accessory services such as mobile phone banking or payment services in rural areas.
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There is a likely for business people to get involve far in investment by undertaking projects that aim to solve social and environmental challenges, the study says. The report besides calls for governments to implement regulative reforms that can help channel FDI in directions that should act to improve surviving standards, produce jobs and broaden the economic bases of LDCs. The report features detail FDI-related data on all 48 LDCs. It contains annexes and aggregate data on FDI trends. ANNEX
Tables and figures FDI inflows to LDCs and their share in world inflows and developing-country inflows, 1986-2010
( billions of dollars and percentage )
source : UNCTAD, FDI/TNC database ( www.unctad.org/fdistatistics ).
Note: Data for 2010 are estimates. Private capital flows to LDCs, 2001-2010
( billions of dollars )
source : UNCTAD, FDI/TNC database ( www.unctad.org/fdistatistics ) ( for FDI inflows ) and IMF ( for portfolio and other investments ).
Note: Data for 2010 are estimates. other investing includes chiefly bank lending .