173 research outputs found
FDI protectionism is on the rise
Over the past two decades or so, countries have liberalized their FDI regulatory frameworks and have put in place an international investment law regime that provides various protections for international investors. In the past few years, however, there are signs that countries are reevaluating their approach toward such investment. As a result, FDI protectionism is on the rise, with screening of inward M&As becoming more frequent. Typically, this is being done under the guise of"national interest"or similar concepts, often linked to strategic sectors and national champions. While the international investment law regime faces a challenge to find the right balance between the rights and responsibilities of governments and investors, care needs to be taken that the rise of FDI protectionism does not endanger a rules-based approach to FDI. An independent FDI Protectionism Observatory to monitor new protectionist measures and name and shame countries that take them is therefore needed.Debt Markets,Emerging Markets,Investment and Investment Climate,,Trade and Regional Integration
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The FDI recession has begun
With $1.8 trillion (according to UNCTAD), world foreign direct investment (FDI) flows reached an all-time high last year. All major regions benefitted from increased flows. But that was then. What is, and will be, the impact of the financial crisis and the recession on FDI flows this year and next
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The FDI recession has begun
With $1.8 trillion (according to UNCTAD), world foreign direct investment (FDI) flows reached an all-time high last year. All major regions benefitted from increased flows. But that was then. What is, and will be, the impact of the financial crisis and the recession on FDI flows this year and next
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China moves the G20 on international investment
Under China’s leadership, the G20 adopted “Guiding Principles for Global Investment Policymaking,” put investment facilitation on the international agenda and institutionalized an additional platform for investment discussions. The challenge is now to build on these accomplishments
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The regulatory framework for investment: where are we headed?
Governments throughout the world have sought, and are seeking, to attract foreign direct investment and, for that purposed, have liberalized their national regulatory frameworks for FDI and established a strong international investment law regime. However, there are signs that, as a result of a number of important developments (which are being discussed in some detail in this chapter), governments are reevaluating their stance toward FDI, or at least certain types of it. This re-evaluation has found its expression in a number of regulatory changes that may eventually lead to a regime that balances the rights of investors and host countries in a manner that places more emphasis on maintaining policy space for host country governments while still protecting foreign investor
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Five key considerations for the WTO investment-facilitation discussions, going forward
The WTO’s discussions on investment facilitation for development, going forward, should reflect on five key issues to achieve a broadly acceptable outcome: the scope of a framework; the development dimension; the balance of a framework; ground-level practical input; and capacity building
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A new challenge for emerging markets: the need to develop an outward FDI policy
While virtually all countries have policies in place to attract FDI, the picture is very different for outward investment. Most developed countries have policies in place, but most emerging markets do not. This Perspective argues that, to remain competitive, governments of emerging markets must develop policies for outward FDI
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The Rise of FDI Protectionism
During the past 20 years or so, we have witnessed an impressive trend toward making the investment climate more welcoming for foreign direct investors. At the national level, the great majority of regulatory changes related to foreign direct investment (FDI) were in that direction, mostly in terms of opening more sectors to investment or reducing other market entry conditions and facilitating the operations of multinational enterprises (MNEs) once established. In fact, countries have actively sought to attract FDI, establishing investment promotion agencies to do that and, among other things, using a range of incentives to lure MNEs to their shores. These national policies have been supplemented by international investment agreements (IIAs) which, in particular, enshrine the protection of investment in internationally-binding treaties and, in a number of cases, also commit governments to liberalizing entry and operating conditions for foreign investors. The result is an international investment regime which, compared to what there was, say, 30 years ago, is quite well developed, even in the absence of a multilateral investment treaty. It is enforced, moreover, through an investor-state dispute settlement mechanism that is increasingly used by firms that seek to enforce what they see to be their rights. This dominant trend of the past two decades or so is certainly still continuing—but there are signs that the pendulum is swinging back. What is happening and why is it happening
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The Next Step in Governance: The Need for Global Micro-Regulatory Frameworks in the Context of Expanding International Production
While this chapter suggests that international micro-regulation is necessary, and that governments and other players have to attend to this need, more regulation – and that of a multilateral kind – is understandably controversial. The discussion below recognizes that sentiment, as shown in the section that sets out the advantages of the current ad hoc approach. The objective is to raise an issue -- more through examples than anything else -- rather than to offer full-fledged solutions or conclusions. Indeed, one of the points that require attention is precisely the trade-offs relating to the advantages and disadvantages of a government-led systematic approach leading to mandatory international instruments, on the one hand, and a market-driven ad hoc approach leading to voluntary international arrangements, on the other. In either case, though, the challenge is to adapt to the realities of a globalizing world economy and the integrated international production system that is at its core
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Outward FDI From Emerging Markets: Some Policy Issues
Outward foreign direct investment (OFDI) from emerging markets (essentially all non-OECD countries) has risen considerably during the past decade, reaching 1.4 trillion. As in the case of developed countries, the bulk of this investment is accounted for by a limited number of economies, with ten of them responsible for 83% in 2005. An increasing number of emerging market firms are joining the rank of multinational enterprises (MNEs), i.e. firms controlling assets abroad. This development raises at least two policy-oriented questions: 1. How should the policy regime for OFDI from emerging markets look like to support the competitiveness of the firms involved and the performance of their home countries? 2. How to manage the public reaction in emerging markets to their OFDI and in host countries to inward FDI from emerging markets
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