It should also disseminate information on country experiences related to FDI policies and the interaction between foreign and domestic investment.

Is there evidence that foreign investors would not consider a host country for investment unless that country had concluded a BIT with their home country?

Investment promotion strategies focus on three main elements the country, the investor and the investment.

While it was pointed out that there was no causal connection between international investment agreements (IIAs) and attracting FDI, it was nevertheless emphasized that the protection of investors would encourage the flow of investments.

Invest, invest, invest.

So defense investment is also investment in security and stability, in diplomacy and cooperation, and in technology and innovation. It is an investment in a safer and more prosperous future for our own countries and for the rest of the world.

Foreign direct investment flows have generally been influenced by policies that do not discriminate between foreign and domestic investors.

Conventional wisdom

2. Foreign investment

Annex I ISSUES RELATED TO COMPETITION LAW OF PARTICULAR

8. The liberalization of cross border flows had led to the internationalization of investments by institutional funds.

36. With regard to the promotion of inward FDI, countries needed to elaborate a promotion strategy targeting investors and to identify the comparative advantages they could offer the latter, as well as impediments to investment.

There is also a severe shortage of investment, both local and foreign, in many developing countries.

China is providing investment insurance and tax breaks to companies that invest abroad.

Foreign direct investment

National financing requirements

1972 Guidelines for International Investment Commerce governmental Non binding Adopted

Foreign portfolio investment

Foreign direct investment (FDI) and portfolio investments amounted to only 9.9 per cent and 2.1 per cent, respectively, of total net resource flows to the region, while FDI profit remittances slightly exceeded FDI inflows.

Capital importing countries conclude BITs in an effort to attract foreign investment in the interest of development, by protecting it and thereby demonstrating their commitment to providing a favourable investment climate.

(b) How can home country programmes for disseminating information and support services to their investors be improved?

In terms of investment promotion strategies, investment promotion agencies (IPAs) are mainly focused on investors based in developed countries.

Investment promotion agencies for inward FDI and OFDI, both in developing and developed countries, could coordinate their efforts.

The creation of a positive image of the host country to investors is considered the first step in investment promotion.

I. Developments in international investment interaction

Activities include country studies on the impact of foreign investment and foreign affiliates on industrial restructuring and development and regional inputs to the preparation and dissemination of the World Investment Report, the World Investment Directory, and the Investment Policy Reviews.

It was also reported that UNCTAD had carried out an assessment of the investment promotion capacity of the national investment promotion agency (Agence Nationale de Développement de l'Investissement).

When it comes to South South investment, the focus should be on small and medium size foreign investors, who often have different needs from those of traditional home countries.

Programme Component D.4 Promotion of Domestic Investment, FDI and Alliances

China s Investment Addiction

Foreign direct investment

International investment agreements (IIAs)

2. Foreign investment 46 48

The broader context in which these discussions take place is laid out in the World Investment Report, 1996 Investment, Trade and International Policy Instruments, Part Three and relevant international investment instruments are contained in International Investment Instruments A Compendium.

Portfolio flows and foreign direct investment (FDI) posted the strongest growth, accounting for more than two thirds of total private inflows.

Programme Component D.4 Promotion of Domestic Investment, FDI and Alliances 55

In the case of China, OFDI approval procedures have been simplified and the Investment Promotion Agency, established under the Ministry of Commerce, provides support in helping Chinese enterprises to invest abroad.

One answer lies in the fact that China s FDI policy over the past 30 years has crowded out Chinese investors from high return projects, forcing them to settle for less lucrative projects. But there are still potential investors who cannot find any suitable investment opportunities in China, generating excess resources, which in turn are invested in US government securities.

Last year, Brazil's green investment (in the investment model of building factories abroad) was 17.9 billion, a year on year fall of 2.1 .

The Centre helps countries prepare investment projects for international financing by the World Bank and other development banks.

Second, domestic and foreign investors would have an incentive to invest because such investment would remove supply bottlenecks affecting private activities.

Moreover, there ought to be more coordination between national investment policies and IIA negotiations.

The idea that FDI will crowd in domestic investment in Africa is central to the conventional policy story.

This growth is related to investment reforms undertaken in many countries in order to attract foreign investors.

Article 6 The State shall protect the lawful rights and interests of the persons who invest in the exploitation of the coal resources according to law.