Dear Members of the World Investment Network,
It is my pleasure to share with you UNCTAD's
World Investment Report 2012 (WIR12): Towards a New Generation of Investment
Policies.
Every year the Report examines recent
FDI trends and policies.
Global foreign direct investment (FDI) flows
in 2011 surpassed the pre-crisis average, reaching $1.5 trillion, despite
persistent uncertainty in the global economy. However, flows still remained
more than 20 per cent below their 2007 peak. UNCTAD predicts slower FDI
growth in 2012, with flows levelling off at about $1.6 trillion. Longer-term
projections show a moderate but steady rise, with global FDI reaching $1.8
trillion in 2013 and $1.9 trillion in 2014, barring any macro-economic
shocks.
FDI inflows in 2011 increased across all
major economic regions. Flows to developing countries reached a
record $684 billion, up 11 per cent. Transition economies saw flows
increase by 25 per cent to $92 billion. Flows to developed
countries grew by 21 per cent, following three years of decline, but still
a quarter below the level of the pre-crisis average.
The picture of a global increase in FDI contrasts
with developments in Africa and in the least developed countries
(LDCs), where the FDI recession continued. However, the decline
in Africa was marginal and due largely to divestments from North Africa,
while inflows to sub-Saharan Africa recovered to $37 billion – near their
historic peak. Future prospects may therefore be brighter.
Investment policy-making is at a cross-roads,
reflected by intensified review and revision of existing national and international
investment regimes. Many countries continue to liberalize and promote foreign
investment. At the same time, new regulatory and control measures are introduced,
although often in pursuit of other policy objectives, such as industrial
policy. Negotiations have also shifted to regional investment treaty-making,
while the negotiation of bilateral investment treaties has slowed.
The Report's special topic this year focuses
on the issue of investment policymaking and its contribution to sustainable
development. The Report includes the full contents of UNCTAD’s new Investment
Policy Framework for Sustainable Development (IPFSD), which provides
background, context and possible evolutions to national and international
investment policymaking. The IPFSD consists of three main components: core
principles, guidelines for national investment policy-setting and options
for international investment treaty formulation.
UNCTAD’s IPFSD recognizes that mobilizing
investment and ensuring that it contributes to sustainable development
objectives is a priority for all countries. A new generation of investment
policies is emerging, as governments pursue a broader and more complex
development policy agenda that has to address new challenges, such as climate
change and the recent economic crisis. The Framework provides a reference
point for policymakers and the wider investment-development community as
they seek to tackle some of these challenges while maintaining a favourable
investment climate.
UNCTAD’s IPFSD has been designed as a 'living
document' and IPFSD
online establishes an interactive
platform that will enable the investment-development community to exchange
views, suggestions and experiences that will help us continuously improve
the Framework.
We hope you find this year's Report interesting
and useful, and welcome any comments or suggestions you may have about
our work.
With best regards,
James X. Zhan
Director
Investment & Enterprise
Division
Team Leader, World Investment
Report
United Nations Conference
on Trade & Development
Palais des Nations, Geneva
Tel: +41 22 9175797
www.unctad.org/diae
Twitter: @unctadwif
wir 
