Strengthening the development impact of UNCTAD\u27s investment policy reviews

This study has been carried out for the German Ministry for Economic Cooperation and Development (BMZ) in cooperation with HWWA and UNCTAD. The study focuses on two issues: • the role of FDI in generating economic growth in developing countries; • how should UNCTAD’s Investment Policy Review process be organized to attract more and better FDI? Compared to a number of simplistic positions, which tend to demonize either the role of FDI in developing countries or those who see them as a “deus ex machina” for the promotion of economic growth, the approach adopted by the authors is highly differentiated. In line with a number of recent studies on FDI and development, the authors emphasize the need to analyse the specific circumstances and conditions of a given country to determine whether and how FDI can promote economic growth. According to the authors, a central precondition for FDI to play a positive role in generating growth effects is the existence of a certain absorption capacity in host countries. They also point out that basic conditions of internal stability and transparency must be fulfilled to set the stage for FDI inflows. In this context it is also emphasized that, even in cases where in principle a sound FDI perspective exists in a country, FDI should be considered more as one factor of development alongside domestic investment in both real and human capital. After this rather brief, but very general discussion of the role of FDI in developing countries, the main part of the study focuses on various issues relating to UNCTAD’s Investment Policy Review (IPR) process. The issues discussed are based on long experience of UNCTAD’s IPR programme in more than 15 countries. The authors conduct a detailed analysis of various content-related issues (e.g. should there be a sector-specific FDI policy?) as well as process- and implementation-related issues (e.g. how should stakeholders be more closely involved, or how could coordination with other institutions, such as the World Bank, OECD and UNDP, be intensified?). Another important issue discussed is the criteria for selecting the countries for which an IPR should be organized. Even though the report and recommendations are addressed mainly to those actors and decision-makers who are directly or indirectly involved in the practical IPR process, they also provide interesting insights for academic and non-academic experts in this field

Strengthening the development impact of UNCTAD's investment policy reviews

"1. IPRs can be a very useful instrument for making FDI policy more effective for the development process. 2. IPRs should not focus exclusively on foreign direct investment but rather on investment in general and consider FDI as one of several elements in the development process. 3. UNCTAD should, in accord with donor countries, take a greater say in the selection of the countries reviewed. The starting point should be an analysis of the absorption capacity and the need for external assistance in the countries in question. 4. In view of widely differing domestic capacities and different needs for and institutional policy advice, UNCTAD should undertake more efforts to adapt the volume of issues covered to the advice actually needed. Activities could extend from Quick Response Window action on one or few specific problems to an "IPR light" or a full-fledged IPR. 5. Recommendations should be based more on investors' and non-investors' experiences and assessments than on a formal investment framework. Assessment of the impact and definition of investment opportunities should be more cautious, given the complexity of these issues. 6. Much weight should be given (1) to the coherence of the various policy actions and (2) to compatibility of national FDI policy and obligations resulting from international treaties. 7. Recommendations regarding policy measures should often be more precise. 8. Support should be given to UNCTAD policy with a view to making use of the knowledge and resources available in other programs. Co-ordination with other institutions (World Bank, OECD, UNDP, etc.) should be intensified. However, this should focus on exchange of facts - competition should continue as far as the provision of advices concerned. 9. Involvement of stakeholders from government, business, and civil society can contribute to better acceptance of an IPR. Top-level government support likewise serves to improve the chances that recommendations will in fact be implemented. UNCTAD's policy in this respect should be continued as long as recommendations are not diluted and become featureless. 10. Implementation of recommendations should be promoted by integrating IPR activities more into 'normal' development assistance. A certain share of the IPR budget should be reserved for implementation action, such as meetings, certain consulting activities, and development of domestic human resources. We consider a 30% share appropriate." (excerpt

Gating by Cyclic Gmp and Voltage in the α Subunit of the Cyclic Gmp–Gated Channel from Rod Photoreceptors

Gating by cGMP and voltage of the α subunit of the cGMP-gated channel from rod photoreceptor was examined with a patch-clamp technique. The channels were expressed in Xenopus oocytes. At low [cGMP] (<20 μM), the current displayed strong outward rectification. At low and high (700 μM) [cGMP], the channel activity was dominated by only one conductance level. Therefore, the outward rectification at low [cGMP] results solely from an increase in the open probability, Po. Kinetic analysis of single-channel openings revealed two exponential distributions. At low [cGMP], the larger Po at positive voltages with respect to negative voltages is caused by an increased frequency of openings in both components of the open-time distribution. In macroscopic currents, depolarizing voltage steps, starting from −100 mV, generated a time-dependent current that increased with the step size (activation). At low [cGMP] (20 μM), the degree of activation was large and the time course was slow, whereas at saturating [cGMP] (7 mM) the respective changes were small and fast. The dose–response relation at −100 mV was shifted to the right and saturated at significantly lower Po values with respect to that at +100 mV (0.77 vs. 0.96). Po was determined as function of the [cGMP] (at +100 and −100 mV) and voltage (at 20, 70, and 700 μM, and 7 mM cGMP). Both relations could be fitted with an allosteric state model consisting of four independent cGMP-binding reactions and one voltage-dependent allosteric opening reaction. At saturating [cGMP] (7 mM), the activation time course was monoexponential, which allowed us to determine the individual rate constants for the allosteric reaction. For the rapid rate constants of cGMP binding and unbinding, lower limits are determined. It is concluded that an allosteric model consisting of four independent cGMP-binding reactions and one voltage-dependent allosteric reaction, describes the cGMP- and voltage-dependent gating of cGMP-gated channels adequately

Effects of Kv1.2 Intracellular Regions on Activation of Kv2.1 Channels

Depolarizing voltage steps activate voltage-dependent K(+) (Kv) channels by moving the voltage sensor, which triggers a coupling reaction leading to the opening of the pore. We constructed chimeric channels in which intracellular regions of slowly activating Kv2.1 channels were replaced by respective regions of rapidly activating Kv1.2 channels. Substitution of either the N-terminus, S4–S5 linker, or C-terminus generated chimeric Kv2.1/1.2 channels with a paradoxically slow and approximately exponential activation time course consisting of a fast and a slow component. Using combined chimeras, each of these Kv1.2 regions further slowed activation at the voltage of 0 mV, irrespective of the nature of the other two regions, whereas at the voltage of 40 mV both slowing and accelerating effects were observed. These results suggest voltage-dependent interactions of the three intracellular regions. This observation was quantified by double-mutant cycle analysis. It is concluded that interactions between N-terminus, S4–S5 linker, and/or C-terminus modulate the activation time course of Kv2.1 channels and that part of these interactions is voltage dependent