The growing trend towards South South investment flows would also lead to an increase in South South investment disputes.

The region's growth indicators were positive the increase in direct foreign investment in 2003 had placed ASEAN among the regions of highest growth in that respect, and the increase was expected to be even bigger in 2004.

Private investments, including foreign investments, were the key to sustained growth and employment generation.

Reducing the budget deficit by limiting government spending and combating a culture of tax avoidance will increase total domestic savings available to invest. Convincing foreign direct investors that India is a reliable destination will increase the inflow of long term funds.

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

Private investments, including foreign investments, were the key to sustained growth and employment generation.

In a situation where you have growth, you put the new money into this.

Domestic investments are a critical resource for economic growth and sustainable development.

The growth in domestic investments would not only enhance national wealth, but would also spur the demand for foreign capital and technology in an escalating, mutually reinforcing manner that makes investments demand driven.

Fixed asset investment is the most important engine of China s growth. As a developing country with annual per capita income of less than 5,000, there is still significant room for China to increase its capital stock.

When Chinese growth eventually becomes less dependent on investment, growth rates in steel consumption can be expected to fall sharply.

This indicates that data on the growth rate of fixed asset investment may have exaggerated the pace of capital stock accumulation. Hence, while the Chinese government should be firm on reducing the dependence of growth on investment, it must exercise utmost care when doing so.

Concurrently, greater investment in infrastructure is also necessary to achieve higher rates of growth.

Negative OFDI growth was experienced in 1985, 1989, 1998 and 2002.

To be sure, capital accumulation is a driving force of economic growth, and catching up with developed country income levels implies that China must increase its capital stock in the long run. But what is at issue is not the size of the capital stock, or even the level of investment the problem is the growth rate of investment, which has been significantly higher than that of GDP for decades.

Increased public sector investment could help to spur private sector investment, which is also severely depressed. In the United States, investment barely exceeds pre crisis levels, even though GDP has risen by 10 .

Shortfalls in investment eventually diminish growth and employment opportunities. The hard truth is that the flip side of the consumption led growth model that prevailed prior to the crisis has been deficient investment, particularly on the public sector side.

This has resulted in limited financing for investments needed for private sector growth, especially small and medium sized enterprises.

Higher rates of economic growth could not be sustained without increased investment, especially in research and development which was crucial to boosting productivity while improving the quality of human capital and technology.

Developing countries, once they enter rapid growth mode, generate growth from capital deepening via investment, in a sense making up for past underinvestment. And it is possible for advanced countries to fall behind by under investing, particularly in the public sector, relying instead on less sustainable debt fueled means of generating demand.

This increase is related mainly to inflows into developing

) which is a comprehensive effort to promote economic growth, increase competitiveness, expand and improve social investment and reduce poverty.

Investment can sustainably drive growth only up to the point when returns decline dramatically. In the case of public sector investment, that means that the present value of the increment to the future GDP path (using a social discount rate) is greater than the investment itself.

Investment growth that surpasses an economy s absorption capacity will lead to a rapid deterioration in the efficiency of investment, which in turn will harm long term growth prospects. Evidence of this in China today is all too prevalent.

While the second half of 2005 was already quite good, Ifo expects investment in equipment to grow by a healthy 6 in 2006. After many years of contraction, investment in construction also will rise slightly.

The success of the East Asian model was predicated on a sharp increase in the investment rate. Beginning with Japan, every rapidly growing East Asian economy sustained investment rates in the range of 38 40 of GDP over its rapid growth phase.

However, to the extent that public investment grows, aggregate demand increases correspondingly, generating some growth and creating a cushion against recession.

Few would argue against China s need for slower but better growth. The problem is that if China wishes to lower the GDP growth rate to 7.5 in 2012, from 9.2 in 2011, without worsening the growth pattern by raising the high investment rate even further, the annual growth rate of investment must be equal to or less than 7.5 .

Funding for this strategy increased almost four fold in 2004 2005, for a total investment of  40 million.

The low costs of finance facilitated global investment, thereby contributing to the acceleration of global growth in 2004.

Other established investors such as Singapore and emerging ones such as Malaysia, South Africa and Turkey are expected to add to this OFDI growth.

The increase of FDI from some developing countries may motivate more attention to the South as a source of investment.

Sustained growth and an improved enabling environment would also make these economies more attractive to external private capital investment, which, together with higher levels of domestic savings, should eventually replace official development financing in the long term.

Government investment in infrastructure, both alone and in partnership with private firms, will also directly benefit growth and attract larger inflows of foreign investment.

China s investment consists of mainly three broad categories manufacturing industry, infrastructure, and real estate. In late 2008 and 2009, at the height of the global financial crisis, stimulus fueled infrastructure investment sustained output growth.

Only now, investment isn't going to be about the relentless and mindless pursuit of consumption growth.

According to preliminary reports, annual investment growth in 2012 reached roughly 14 significantly higher than the GDP growth rate, which accelerated in the fourth quarter as a result of a strong rebound in investment in real estate and infrastructure. In 2013, it can be expected that, barring major disruptions, strong investment growth will push China s GDP more than 8 higher year on year.

Even abundant domestic savings in the future would not guarantee higher investment. Firms eagerness to invest depends on how much additional output they can get out of that investment, and recent productivity growth in Latin America as in the US has been disappointing.

In the 1930 s, the economist Alvin Hansen argued that opportunities for new investment in already rich countries were drying up. Investment growth had depended on population growth, technological innovation, and westward expansion.

The latest figures show that 2011 was a very strong year for attracting investment into the Irish economy, with a record 148 new projects a 30 increase in companies investing in Ireland for the first time implying an additional 13,000 jobs.

This draft report is a provisional text circulated for clearance by delegations.

OFDI flows grew marginally between 1976 and 1989 but have surged since 1990 except in 1998 and 2002.

At the same time, since returns to capital are kept low by high wages, very little investment occurs. The excess of savings over investment flows abroad as capital exports.

Over the past decade, real estate investment in China has been the single most important contributor to fixed asset investment growth and therefore, to the economy. Indeed, since the late 1990 s, the real estate investment to GDP ratio has been far higher than it was in countries like Japan and Korea during their high growth periods.

Or even if you're flat, you might shift money into it.