search.noResults

search.searching

dataCollection.invalidEmail
note.createNoteMessage

search.noResults

search.searching

orderForm.title

orderForm.productCode
orderForm.description
orderForm.quantity
orderForm.itemPrice
orderForm.price
orderForm.totalPrice
orderForm.deliveryDetails.billingAddress
orderForm.deliveryDetails.deliveryAddress
orderForm.noItems
GLOBALOUTLOOK


across the globe. TheWorld Bank has estimated that the pandemic will pushan estimated 71 to 100 million people into poverty, marking the first increase in global poverty since 1998. At the same time, people from


InclusiveFDI C


SPREADING THE BENEFITS OF INVESTMENT EVENLY IS NOW MORE IMPORTANT THAN EVER. ALEX IRWIN-HUNT AND TAHA AHMED REPORT


oronavirus has shone a spot- light on the inequities and frailties ofmodernsocieties


economist specialised on state and local economic development. “The effect of job growth onemployment- to-population ratios will be higher, so national or stateemployment rates will be boostedmore if we tar- get distressed areas,” he explains. However, governments first need


poorer communities are set to be worst affected. Economic develop- ment will play a crucial role in reversing the negative impacts of the global pandemic. Yet its ability to do so will be constrained, as FDI flows are projected to fall by as much as 40% this year, according to theUN Conference on Trade and Development (Unctad).


Inequity persists Research by greenfield investment monitor fDiMarkets found half of the world’s top 100 FDI recipient countries had 40% ormore of total inbound projects concentrated in just one city. In theUAE, for example, Dubai


has taken 75.5% of the total announced greenfield FDI projects since 2003. In Lebanon, capital city Beirut accounted for 72% of total greenfield FDI projects, while Côte d’Ivoire’s capital, Abidjan, attracted 64.2% of projects. Such uneven distri- bution is also evident inmajor econo- mies. In Japan, the world’s third larg- est economy,more than half (53.6%) of the FDI projects announced since 2003 went to its capital, Tokyo. A high concentration of invest-


ment results in regions of a country being left behind, and thus in ineq- uitable economic development out- comes. Against this backdrop, Unctad is urging economic develop- ment agencies to attract investment that promotes the sustainable devel- opment goals, including the reduc- tion of inequality.


Laying the foundations Investments into poorer regions and communities tend to have greater benefits than inmajor economic hubs, says Timothy Bartik, a senior


August/September 2020 www.fDiIntelligence.com


to develop areas through investment in infrastructure and workforce training programmes, to make these areas attractive to investors.“We often hear government officials ask- ing for investment into areas that do not offer anything, in the hope of development. It is the job of govern- ment to develop these regions and then investors will follow,” says Hamed El-Kady, a sustainable invest- ment policy advisor at Unctad. Rodrick Miller, CEO of Invest


Puerto Rico, agrees that governments often fail tomake initial investments but adds that a region can never have optimal competitiveness without the participation of its underdeveloped communities. “Governments should be very active in their own procure- ment policies to ensure there is a commitment to procuring goods from local firms and from firms run by people of colour,” he says.


Major infrastructure Commissioningmajor infrastructure projects is one way to draw invest- ment into less developed regions. In the UK, where the south-east region attracted half of all greenfield FDI projects in 2019, the government has implemented a “levelling up” agenda aimed at increasing investment out- side the dominant capital region. Its flagship project, amajor rail


project, HS2, which will connect the UK capital London to Birmingham in its first phase, has piqued the interest of investors. “To activate and stimu- late the market at a regional level, we need investments in gear shift pro- jects [like HS2], because if you can create something attractive, clearly companies will want to be part of that,” says Neil Rami, CEO of the West Midlands GrowthCompany, the economic development organisa-


21


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88