Transcription of Foreign Direct Investment for Development
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Foreign Direct Investment for Development
Foreign Direct Investment (FDI) is an integral part of an open and effectiveinternational economic system and a major catalyst to Development . Yet, thebenefits of FDI do not accrue automatically and evenly across countries, sectorsand local communities. National policies and the international investmentarchitecture play an important part in attracting FDI to a larger number ofdeveloping countries. It is the responsibility of the host countries to put in place atransparent, broad and enabling Investment policy environment and to reinforcethe human and institutional potentials necessary for such an environment.
the effects on competition in national markets. Moreover, some host country authorities perceive an increasing dependence on internationally operating enterprises as representing a loss of political sovereignty. Even some expected benefits may prove elusive if, for example, the host economy, in its current state of economic develop-
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