Dear Member of the WIN,
It is my pleasure to share with you the main
findings of UNCTAD's
World Investment Report 2013,
which is being launched today in over 50 global locations. The report presents
the latest global trends and prospects on foreign direct investment (FDI)
and recent international and national policy developments, as well as key
emerging investment-development related issues.
The report's main findings:
year's thematic chapter of the report is devoted to the topic of global
value chains (GVCs) and their development implications.
- Global FDI flows declined 18 per cent in
2012 to $1.35 trillion, below the pre-economic crisis level. The FDI recovery
that started in 2010 and 2011 will now take longer than expected: UNCTAD
forecasts FDI in 2013 will remain at a similar level to 2012 and reach
$1.6 trillion in 2014.
- In 2012 – for the first time ever – developing
economies absorbed more FDI than developed countries; their share rose
to 52 per cent of global flows versus 42 per cent in developed economies
(with the remainder going to economies in transition). In addition, developing
economies generated almost one third of global FDI outflows.
- With respect to international investment
policies, more countries included a sustainable development dimension in
their investment treaties and created more regulatory “space” for maximizing
the positive and minimizing the potential negative effects of FDI. Close
to half of all bilateral investment treaties (1,300) have reached the stage
where they can be terminated at any time, which creates opportunities and
challenges for policymakers.
download the selected chapters of the report, please go to UNCTAD's
website or click here
to access the overview.
- The report shows how GVCs form the nexus
between trade and investment: the vast majority of global trade - some
80 per cent - is linked to the international production networks of transnational
corporations, and countries with a higher presence of FDI relative to the
size of their economies tend to have a higher participation in GVCs and
to generate more domestic value added from trade.
- The report finds that developing countries
can effectively use GVCs for building productive capacity, economic upgrading,
and social up-scaling: in the past two decades, their share in global value
added trade increased from 20 per cent in 1990 to over 40 per cent today.
- However, such benefits are not automatic
and there are important risks associated with GVCs for host countries.
Hence policy matters. The report therefore proposes policies for productive
capacity building for GVC participation, a social and environmental governance
framework for GVCs, and a coordinated approach to synergising trade and
investment policymaking and promotion activities.
I hope you find the report's findings useful
and interesting: we will continue to keep you updated throughout the year
with the latest changes in quarterly FDI trends, as well as policy developments.
With best regards,
Investment & Enterprise Division
United Nations Conference on Trade &
Palais des Nations, Geneva
Tel: +41 22 9175797
(World Investment Reports)