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1. Roadmap to Zero-Carbon Electrification of Africa by 2050: The Green Energy Transition and the Role of the Natural Resource Sector (Minerals, Fossil Fuels, and Land)

Author:
Jeffrey D. Sachs, Perrine Toledano, and Martin Dietrich Brauch
Publication Date:
01-2022
Content Type:
Special Report
Institution:
Columbia Center on Sustainable Investment
Abstract:
All Africans—whether living in urban or rural areas—need access to affordable, clean, efficient, reliable, climate- proof, and renewable energy for both residential and productive uses to achieve sustainable development objectives. This report sets out a comprehensive and actionable roadmap for Africa’s zero-carbon energy transformation by 2050, with most advances achieved by 2030. Natural resource management in minerals, fossil fuels, and land sits at the core of the strategy. The world is moving to decarbonization by 2050. This is the dominant geopolitical message of 2021, appearing, for example, in U.S. President Joe Biden’s online summit with world leaders in April 2021 and in the new IEA Report on Net Zero by 2050: A Roadmap for the Global Energy Sector. Africa will be part of this global trend. Prospective oil and gas projects in Africa will no longer be pursued as overseas markets and financing will shrink. At the same time, Africa’s vast renewable energy potential, in the solar and hydropower sectors especially, will engage increasingly bankable and highly attractive investments. In net terms, Africa has a huge amount to gain from a decisive build-up of renewable energy and the capacity to produce the minerals, hardware, and software of the new zero-carbon energy economy. Starting from a simple and transparent model of the annual investment volumes needed to provide continent-wide access to electricity based on renewable sources (Section 2), the report addresses various imperatives and challenges regarding Africa’s energy planning (Section 3) and financing (Section 4) and outlines recommendations for immediate implementation of the strategy from 2022 (Section 5).
Topic:
Climate Change, Development, Energy Policy, Environment, Sustainable Development Goals, Sustainability, Decarbonization, and Energy Crisis
Political Geography:
Africa

2. Investment Incentives: A Survey of Policies and Approaches for Sustainable Investment

Author:
Lisa Johnson and Perrine Toledano
Publication Date:
11-2022
Content Type:
Special Report
Institution:
Columbia Center on Sustainable Investment
Abstract:
In order to effectively harness public funds and leverage them to support sustainable development, governments have to be strategic in their use of capital. This means ensuring that government funds are used to help compensate for market failures that lead to the underproduction of public goods. It also means ensuring that government funds are not used to provide redundant support for private actors and subsidize environmentally or socially harmful activities. To achieve these policy objectives, governments need to be careful and deliberate in their use of investment incentives. Investment incentives, which may be defined (broadly) as nonmarket advantages used to influence the behavior of an economic actor, can represent significant costs to governments. These costs have the potential to generate various public benefits such as increased employment, development and dissemination of environmentally and socially sound technology, and other positive externalities. However, investment incentives are not often tailored or implemented in ways that ensure they produce the desired outcomes, or they do so at public costs that are less than their public benefits. Investment incentives have the potential to advance sustainable development but can also be misused, undermining their goals, and wasting public funds. This report provides an overview of investment incentives, their policy implications, and strategies for understanding and managing their costs and benefits.
Topic:
Development, Governance, Investment, and Sustainability
Political Geography:
Global Focus

3. Development Banking in the Global Economy: State of Play and Future Direction

Author:
Ryan Lasnick
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
This report analyses the size, scale and persistence of national development banks and offers ten clear observations and conclusions of the role of NDBs for the achievement of sustainable development globally. The Executive Summary can be found here. This report analyzes NDBs top down and bottom up. Top down, it includes the most recent data on the number of NDBs along with their total assets and annual disbursements. Bottom up, we conduct systematic case studies of various development bank ecosystems, including those of India, Brazil, China, South Africa, Germany and the US, to begin analyzing their role in the national development bank economy.
Topic:
Development, Sustainability, and Banking
Political Geography:
Global Focus

4. COVID-19 and Land-based Investment: Changing Landscapes

Author:
Clarisse Marsac, Nathaniah Jacobs, and Tehtena Mebratu-Tsegaye
Publication Date:
05-2021
Content Type:
Special Report
Institution:
Columbia Center on Sustainable Investment
Abstract:
The Covid-19 crisis has affected nearly all elements of the global economy, including the landscape of land-based investment (LBI). In addition to increased demand for land-based investment, especially among low- and middle-income countries which saw decreasing revenue and increasing spending in the first year of the pandemic, the crisis has also caused changes in the ways of doing business among host governments, home governments, and private sector actors involved in LBI. This report details and reflects on select Covid-19--related LBI developments in the short term, and potential longer-term shifts relevant to land-based investment practices in Sub-Saharan Africa and Southeast Asia. It also suggests possibilities for how a post-Covid economic recovery could improve practices for sustainable and responsible LBI.
Topic:
Development, Economics, Sustainability, and COVID-19
Political Geography:
Africa, Asia, Southeast Asia, and Sub-Saharan Africa

5. Comparison Between the IPCC Reporting Framework and Country Practice

Author:
Jiarui Chen and Martin Dietrich Brauch
Publication Date:
07-2021
Content Type:
Special Report
Institution:
Columbia Center on Sustainable Investment
Abstract:
The 2006 Intergovernmental Panel on Climate Change (IPCC) Guidelines (IPCC 2008) for National Greenhouse Gas Inventories (IPCC Guidelines) provide a recommend- ed (but not mandatory) methodology for preparing Na- tional Inventory Reports (NIR), which all Annex I Parties2 to the United Nations Framework Convention on Climate Change (UNFCCC) must submit every year (Romijn et al. 2019). In practice, however, many countries apply modi- fied methodologies in their NIRs to reflect country-specif- ic situations better. While helpful in addressing country specificities, those modified methodologies may result in emission data that is less standardized and therefore harder to compare and consolidate. Also, the IPCC recom- mends that countries adopt higher tier methods and use more granular data. Since different emissions categorized by the IPCC3 can be calculated by multiple methods, and the granularity and quality of country emissions databas- es vary, different countries adopt different granularity lev- els and tier methods (IPCC 2008). The 160 Non-Annex I Parties to the UNFCCC (most of them developing countries) are not required to submit NIRs every year, but must submit Biennial Update Re- ports (BURs), including a national inventory report and information on mitigation actions, needs, and support re- ceived (Kainou 2016). Following the same IPCC Guidelines as NIRs, BURs are different from NIRs mainly in terms of reporting scope. The IPCC Guidelines require countries to report greenhouse gas (GHG) emissions in NIRs from 1980 to the latest reporting period, while for BURs they merely encourage countries to submit summary informa- tion tables of inventories for previous submission years.4 Besides the required BURs, more Non-Annex I Parties have been submitting NIRs and Technical Annexes on REDD+ in recent years (Romijn et al. 2019). In 2020, 23 Non-Annex I Parties submitted NIRs (UNFCCC 2020). We recommend that the IPCC adopt, based on a man- date from the Conference of the Parties to the UNFCCC, a consolidated framework to indicate best practice for each emissions category. A consolidated framework would help unify the granularity levels and standards across all coun- tries’ NIRs. It could also be extended to countries that have not adopted the IPCC Guidelines or published NIRs. Since an increasing number of Non-Annex I Parties are submit- ting NIRs to the UNFCCC, it is crucial to have a widely appli- cable framework that developing countries can also use. A consolidated framework would also make it easier for countries to communicate their emissions reductions goals in their Nationally Determined Contributions (NDCs) under the Paris Agreement on Climate Change. With the Paris Agreement, countries established an enhanced transparency framework (ETF): starting in 2024, countries will report transparently on actions taken and progress in climate change mitigation, adaptation measures, and support provided or received. It also provides for interna- tional procedures for the review of the submitted NIRs. A standardized reporting framework for NIRs would comply with the requirement of transparency framework under Paris Agreement (Winkler et al. 2017). To exemplify how a consolidated framework would work, after a background note on scopes and approaches in greenhouse gas reporting (section 1), we present the re- sults of our empirical research on the NIRs of Australia, Germany, Japan, and the United States, focusing on the differences in the choice of methodology (section 2) and emission factors (section 3). Then we conduct a case study on the German iron and steel industry, exploring the dif- ferences in emission reporting under different methods (section 4). Finally, we study the case of China, which has submitted BURs but not yet published annual NIRs, to understand how the IPCC Guidelines could be applied to more countries (section 5). We outline our findings and recommendations in section 6.
Topic:
Climate Change, Development, Environment, and International Cooperation
Political Geography:
Global Focus

6. Best Practices in Data Driven Development Planning in Mining Regions

Author:
Nicolas Maennling and Josefina Correa
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
Strategic development planning has long been used by private and public sectors to guide actions that will lead to a determined goal in the medium- to long-term. The SDG framework has helped to create a common language of what development means, what the global objectives are by 2030, and how progress can be measured. With the world entering an era in which data is generated and used at an unprecedented scale, data and ICT systems should be used to better inform policy decision making and help evaluate progress to hold stakeholders accountable to their promises and performances. This report outlines how two mining projects in Chile are using planning and monitoring tools to advance development objectives beyond the mining-impacted areas. Several additional examples are showcased in the annex on how governments, companies, and civil society are using improved data accessibility and technological advances to help achieve and monitor their objectives.
Topic:
Development, Science and Technology, Sustainable Development Goals, and Mining
Political Geography:
South America and Chile

7. Government-held equity in foreign investment projects: Good for host countries?

Author:
Louis T. Wells
Publication Date:
02-2014
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
A recent Perspective concluded that, in countries given to sudden shifts in policy, "a host country government equity stake in a project may decrease project risk by giving the state a reason not to demand a renegotiation." An investor may benefit, but does the host country? In my experience, rarely.
Topic:
Development, Economics, International Trade and Finance, and Foreign Direct Investment

8. Regional concentration of FDI involves trade-offs in post-reform India

Author:
Peter Nunnenkamp, Wan-Hsin Liu, and Frank Bickenbach
Publication Date:
03-2014
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
P. Chidambaram, India's Minister of Finance, claimed that "FDI worked wonders in China and can do so in India." However, China's example may also point to the limitations of foreign direct investment (FDI) liberalization in promoting the host country's economic development. FDI in China is heavily concentrated in the coastal areas, and previous studies have suggested that this has contributed to the increasing disparity in regional income and growth since the late 1970s.
Topic:
Development, Economics, International Trade and Finance, and Foreign Direct Investment
Political Geography:
China, South Asia, and India

9. Achieving sustainable development objectives in international investment: Could future IIAs impose sustainable development-related obligations on investors?

Author:
Janani Sarvanantham and John Gaffney
Publication Date:
11-2013
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
A number of influential international organizations recently have issued publications that discuss the promotion of sustainable development in international investment. These organizations include the United Nations; UNCTAD; FAO, IFAD, the UNCTAD Secretariat, and the World Bank Group; the Commonwealth Secretariat; the Organisation for Economic Co-operation and Development (OECD); the International Chamber of Commerce (ICC); and the South African Development Community (SADC).
Topic:
Development, Economics, Emerging Markets, International Organization, Foreign Aid, and Governance
Political Geography:
United Nations

10. Go out and manufacture: Policy support for Chinese FDI in Africa

Author:
Nikia Clarke
Publication Date:
11-2013
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
Energy investments and infrastructure contracts remain prominent in China's Africa engagement. However, investment in manufacturing makes up a significant proportion of Chinese outward foreign direct investment (FDI). Its characteristics–large numbers of smaller transactions by privately owned small and medium-sized firms–make these flows difficult to assess or control. However, China and African governments have an interest in effectively channeling this type of FDI.
Topic:
Development, Economics, Industrial Policy, International Trade and Finance, Markets, and Foreign Direct Investment
Political Geography:
Africa and China

11. Three challenges for China's outward FDI policy

Author:
Karl P. Sauvant
Publication Date:
10-2013
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
Since China adopted its "going out" policy in 2001, her outward foreign direct investment (OFDI) flows have grown rapidly, reaching US$84 billion in 2012 (although the stock remains small). That year, China was the world's third largest outward investor (after the US and Japan). This performance raises all sorts of issues, especially because state-owned enterprises (SOEs) control some three-quarters of the country's OFDI stock. Three challenges are addressed in this Perspective.
Topic:
Development, Economics, Emerging Markets, and Foreign Direct Investment
Political Geography:
United States, Japan, and China

12. Toward a multilateral framework for investment

Author:
Nicolle Graugnard
Publication Date:
09-2013
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
Business needs a stable and predictable investment environment, especially in times of economic uncertainty, to continue to generate employment and create wealth. Although foreign direct investment (FDI) flows rose for two years after plummeting in the wake of the global financial crisis, they fell again by 18% to US$ 1.4 trillion in 2012. According to UNCTAD, the major factors contributing to this sharp decline were economic fragility and policy uncertainty in several economies. Moreover, investment regulations classified as “restrictive” rose to 25% in 2012, compared to just 6% in 2000; “liberalizing” regulations were 75 % of the total in 2012, compared to 94% in 2000. The result of these regulations is, therefore, not surprising: businesses are holding back on new investments, with multinational enterprises reporting record cash-holdings of between US$ 4 to 5 trillion.
Topic:
Development, Economics, International Cooperation, International Trade and Finance, Foreign Direct Investment, and Governance

13. Cost allocation in investment arbitration: Back toward diversification

Author:
Baiju S. Vasani and Anastasiya Ugale
Publication Date:
07-2013
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
In 2006, the Thunderbird tribunal, operating under the UNCITRAL Arbitration Rules, called for the harmonization of cost-allocation approaches in commercial and investment arbitration. Subsequent tribunals appear to be heeding Thunderbird's call paving a trend in favor of the so-called “costs follow the event” (CFtE) approach and its variations. Generally, this approach prescribes the shifting of arbitral costs and reasonable legal fees to the unsuccessful party (or based on parties' relative success) and has historically been prevalent in commercial arbitration. By contrast, the more traditional approach in investment arbitration has been to share the costs of arbitration equally, save for special circumstances, with each party covering its own legal fees (traditional approach). In the wake of what appears to be an emerging trend in favor of a default CFtE custom, it is time to revisit the idea of whet her a single harmonized approach to cost allocation is really appropriate. We suggest that it most likely is not.
Topic:
Development, Economics, Emerging Markets, International Trade and Finance, and Foreign Direct Investment

14. Toward a multilateral framework for investment

Author:
Nicolle Graugnard
Publication Date:
09-2013
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
Business needs a stable and predictable investment environment, especially in times of economic uncertainty, to continue to generate employment and create wealth. Although foreign direct investment (FDI) flows rose for two years after plummeting in the wake of the global financial crisis, they fell again by 18% to US$ 1.4 trillion in 2012. According to UNCTAD, the major factors contributing to this sharp decline were economic fragility and policy uncertainty in several economies. Moreover, investment regulations classified as “restrictive” rose to 25% in 2012, compared to just 6% in 2000; “liberalizing” regulations were 75% of the total in 2012, compared to 94% in 2000. The result of these regulations is, therefore, not surprising: businesses are holding back on new investments, with multinational enterprises reporting record cash-holdings of between US$ 4 to 5 trillion.
Topic:
Development, Economics, Industrial Policy, International Trade and Finance, and Natural Resources

15. Are trade-law inspired investment rules desirable?

Author:
Marino Baldi
Publication Date:
09-2013
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
Traditional bilateral investment treaties (BITs) focus on investment protection, i.e., regulate post-establishment aspects of foreign investment. In recent times, investment agreements have increasingly been supplemented with liberalization rules and also clauses on, e.g., key personnel, labor rights and sustainable development. Such integrated investment accords have notably become part of preferential trade agreements (PTAs). This trend started with NAFTA, continued with the negotiations on a Multilateral Agreement on Investment (MAI), and has in the course of the past ten years increasingly characterized PTAs throughout the world. The rapid proliferation of PTAs has, in the investment field, unfortunately led to lower quality provisions. Many of these treaties contain such wide-ranging exceptions and vaguely formulated safeguard clauses that their regulatory value as regards the protection of foreign investments in their post-establishment phase is called into question.
Topic:
Development, Economics, International Trade and Finance, and Foreign Direct Investment

16. Nation states and nationality of MNEs

Author:
Seev Hirsch
Publication Date:
01-2012
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
The purpose of this Perspective is to explore the relationship between multinational enterprises (MNEs) and their home countries. I use the term “nationality” when discussing a home country, to stress the contrast with “multinationality” which refers to business enterprises. The question I seek to address is whether, ceteris paribus, nation states have an economic interest in becoming home countries to MNEs. This is not a trivial question, bearing in mind that in many countries -- especially those with emerging markets -- outward foreign direct investment (FDI) has been frowned upon long after incoming FDI was generally welcome by local governments and academic scholars.
Topic:
Development, Economics, Emerging Markets, International Trade and Finance, Political Economy, and Foreign Direct Investment

17. Towards the successful implementation of the updated OECD Guidelines for Multinational Enterprises

Author:
Tadahiro Asami
Publication Date:
01-2012
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
The Business and Industry Advisory Committee to the OECD (BIAC) has accepted the updated OECD Guidelines for Multinational Enterprises (Guidelines), adopted on May 25, 2011 after a series of negotiations and consultations among members of the Organisation for Economic Cooperation and Development (OECD), adhering governments, BIAC, the Trade Union Advisory Committee to the OECD, and OECD Watch, an international network of civil society organizations. The Guidelines are the most comprehensive government-endorsed code of responsible business conduct. The Update upheld the voluntary and non-legally binding character of the Guidelines, and while the new text introduces important new elements, the Update is very carefully formulated and its changes are accompanied by extensive conditionalities.
Topic:
Development, Economics, International Cooperation, International Trade and Finance, Markets, and Foreign Direct Investment

18. FDI stocks are a biased measure of MNE affiliate activity: A response

Author:
Mira Wilkins
Publication Date:
01-2012
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
In a recent Perspective, Beugelsdijk, Hennart, Slangen, and Smeets warned readers about biases in the measure of FDI stock. They are to be congratulated for pushing readers to be careful in the use of data.
Topic:
Development, Economics, Emerging Markets, International Trade and Finance, and Foreign Direct Investment

19. Absent from the discussion: The other half of investment promotion

Author:
Lise Johnson
Publication Date:
09-2012
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
As UNCTAD highlighted over a decade ago and again recently in its Investment Policy Framework for Sustainable Development, home-country measures (HCMs), like host-country commitments regarding the protection of foreign investors, are tools of promoting foreign investment. Nevertheless, the vast bulk of investment treaties, which state the promotion of foreign investment as their objective, overlook the potential role of HCMs and focus rather singularly on setting out the obligations of host countries regarding the treatment of foreign investors. Even recent agreements and model investment treaties that should represent “next generation” practices incorporating accumulated learning about the impacts and effectiveness of these treaties remain relatively devoid of any obligation for governments to facilitate or promote the quantity and quality of outward investment that many countries want and need for sustainable development.
Topic:
Development, Economics, Emerging Markets, International Trade and Finance, Markets, Foreign Aid, and Foreign Direct Investment

20. Reconciling IMF rules and international investment agreements: An innovative derogation for capital controls

Author:
Elizabeth L. Broomfield
Publication Date:
09-2012
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
There is currently no universal framework governing capital controls. As a result, a conflict has arisen due to the different approaches taken by various international organizations and many international investment agreements (IIAs). In particular, the International Monetary Fund (IMF) -- established to manage the international financial system -- preserves national autonomy over capital controls when such measures are deemed necessary; in contrast, IIAs, and especially bilateral investment treaties (BITs) -- crafted primarily to protect investors -- typically do not allow for the imposition of restrictions on capital outflows associated with foreign investments for balance-of-payments reasons.
Topic:
Development, Economics, International Monetary Fund, Foreign Aid, Foreign Direct Investment, and Financial Crisis

21. Starting anew in international investment law

Author:
M Sornarajah
Publication Date:
07-2012
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
The legitimacy of investment arbitration becomes increasingly questioned, with liberal states like Australia moving away from the regime. Defenders seek to ensure the survival of this regime of asymmetric investment protection, using a variety of techniques. The conservation of the gains of property protection has resulted in novel arguments relating to the existence of a global administrative law and standards of global governance. These arguments seek to preserve an approach associated with the failure of market fundamentalism and global economic crises. As long as the inequity contained in regulatory restraints of the system affected only the powerless states, it operated with vigor; but with powerful states feeling the effects of regulatory restraints of investment treaties, there has been movement away from the earlier premises of the established regime.
Topic:
Development, Economics, Emerging Markets, and International Trade and Finance
Political Geography:
China, India, and Australia

22. Law at two speeds: Legal frameworks regulating foreign investment in the global South

Author:
Lorenzo Cotula
Publication Date:
06-2012
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
Foreign investment in developing countries' natural resources brings into contact competing interests characterized by an unequal balance of negotiating power -- from multinational enterprises and host governments to people affected by the implementation of investment projects. Economic globalization has been accompanied by extensive developments in national and international norms regulating investment and its impact -- including investment law, natural resource law and human rights law. These norms affect the way the costs, risks and benefits of investments are shared among the multiple parties involved.
Topic:
Development, Economics, Emerging Markets, International Law, Foreign Direct Investment, and Law

23. Roll out the red carpet and they will come: Investment promotion and FDI inflows

Author:
Torfinn Harding and Beata Javorcik
Publication Date:
06-2012
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
Foreign direct investment flows to developing countries are hindered by many factors. Two of these factors -- the mere lack of information and red tape -- could be easily remedied through investment promotion efforts.
Topic:
Development, Economics, Emerging Markets, International Trade and Finance, Markets, and Foreign Direct Investment

24. Inward foreign direct investment: Does it enable or constrain domestic technology entrepreneurship?

Author:
Saurav Pathak, André Laplume, and Emanuel Xavier-Oliveira
Publication Date:
12-2012
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
Whether or not foreign direct investment (FDI) is essential for domestic technological and economic development remains a contentious question. The controversy is illustrated by comparing the Celtic and Asian Tigers experiences from 1995 to 2000. Based on IMF and World Bank data in constant prices, Ireland and China averaged an annual growth rate of 8% in GDP per capita. However, FDI per capita grew at an average pace of 98% per year in Ireland, while in China it decreased by 1% -- absolute values averaged US$ 3,397 versus US$ 144, respectively. This suggests that, rather than a one-policy-fits-all approach, customized policies are more appropriate; and, if any generalization can be made, it should be based on a country's stage of economic development.
Topic:
Development, Economics, Emerging Markets, International Trade and Finance, and Foreign Direct Investment
Political Geography:
Israel and Asia

25. Untying the land knot: Turning investment challenges into opportunities for all citizens

Author:
Xiaofang Shen
Publication Date:
11-2012
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
China, 1980s. Newly embarked on its economic transformation, China opened to foreign direct investment (FDI) to obtain capital, technology and access to world markets. Investors hesitated, however, since national law prohibited access to state-owned land. In reaction, the government introduced a long-term lease system, first tested in special economic zones and later applied across the country. This approach enabled China's phenomenal success in attracting FDI in the years to come; it also paved the way for 500 million urban citizens to gain property rights, which in turn inspired the rural population to ask for the same rights today.
Topic:
Development, Economics, Emerging Markets, and International Trade and Finance
Political Geography:
China

26. Evaluate Sustainable FDI to Promote Sustainable Development

Author:
John M. Kline
Publication Date:
11-2012
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
Prescriptions to increase the role of FDI in promoting sustainable development generally focus on the macro level -- getting policies right and otherwise improving the investment climate. These steps are necessary but not sufficient. Effective implementation processes, especially at the micro project level, are also essential to encourage FDI that matches host country development needs and priorities.
Topic:
Development, Economics, Emerging Markets, International Trade and Finance, and Foreign Direct Investment

27. The unbalanced dragon: China's uneven provincial and regional FDI performance

Author:
Karl P. Sauvant, Chen Zhao, and Xiaoying Huo
Publication Date:
03-2012
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
Among developing countries, China attracts most foreign direct investment (FDI). Where is this investment located within China, what explains its distribution and what are policy implications? We used UNCTAD's FDI Performance Index to answer the first question. Although developed for countries , it can be applied to sub-national units. It uses provincial GDP to ascertain whether a given territorial unit has received FDI inflows as expected from its economic size. Standardizing the data accordingly reveals three clusters of provinces for 2007-2010 (table 1, figure 1 below): The first cluster encompasses virtually all coastal provinces: they have an index value above 1, i.e. perform better than their economic size would lead one to expect. They account for 9 of the top 11 performers of Mainland China's 31 provinces, municipalities and autonomous regions (“provinces”). The provinces in the middle cluster underperform (index value of 1-0.5). They include 5 central provinces, but also 3 western and 2 coastal provinces. The provinces in the bottom cluster underperform significantly (index value below 0.5), comprising primarily the country's western provinces (8 out of the 10 provinces in this cluster).
Topic:
Development, Economics, International Trade and Finance, Markets, and Foreign Direct Investment
Political Geography:
China

28. The standing of state-controlled entities under the ICSID Convention: Two key considerations

Author:
Mark Feldman
Publication Date:
04-2012
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
The ICSID Convention, under Article 25(1), applies only to those investment disputes that are between a contracting state and a “national” of another contracting state. Given that limitation, and in light of the significant and growing amount of foreign investment by state-controlled entities (SCEs), ICSID tribunals likely will need to address one fundamental issue with greater frequency: whether disputes arising from SCE investments constitute investor-state disputes falling within, or state-to-state disputes falling outside of, the scope of the ICSID Convention.
Topic:
Development, Economics, Markets, Foreign Direct Investment, and Governance

29. State-controlled entities control nearly US$ 2 trillion in foreign assets

Author:
Karl P. Sauvant and Jonathan Strauss
Publication Date:
04-2012
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
Developing country sovereign wealth funds (SWFs) as players in the world foreign direct investment (FDI) market have received considerable attention. While outward FDI from emerging markets has indeed risen dramatically, that by SWFs has been negligible: their outward FDI stock is around US$ 100 billion (compared to a world FDI stock of US$ 20 trillion in 2010).
Topic:
Development, Economics, Emerging Markets, Government, International Law, and Foreign Direct Investment
Political Geography:
United States

30. FDI, catch-up growth stages and stage-focused strategies

Author:
Terutomo Ozawa
Publication Date:
05-2012
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
This is a reply to Francisco Sercovich's commentary on my Perspective on FDI-led industrial takeoff in which I described foreign direct investment (FDI) as an ignition for catch-up industrialization. He emphasized "the rich and nuanced variety of strategic options" (e.g., S policies, engineering education, chaebol-type enterprises for technology absorption, R capabilities), which are, however, relevant only to higher-stages of catch-up, but notto the kick-off stage with which my previous Perspective was concerned. Economic development derives from structural changes at different stages of growth, requiring stages-focused strategies.
Topic:
Development, Economics, International Trade and Finance, Markets, and Foreign Direct Investment

31. Inward FDI in Russia and its policy context, 2012

Author:
Alexey Kuznetsov
Publication Date:
07-2012
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
Russia is potentially an attractive host economy for foreign direct investment (FDI), mainly due to its large market and rich natural resources. The Government has, however, been unable to make the radical changes needed in the country's investment climate for attracting FDI on a scale and to a range of industries in line with Russia's potential. Nevertheless, oil and gas, power generation and motor vehicles industries, as well as wholesale and retail trade and several other industries have recently received new and significant FDI. After a steep decline in 2008, inward FDI (IFDI) stock recovered, to reach US$ 491 billion in 2010, although there was a moderate fall again in 2011. IFDI flows fell considerably in 2009 but rose to US$43 billion in 2010 and US$ 53 billion in 2011. In 2008–2010, the largest number of significant greenfield projects were in power generation. Large mergers and acquisitions (M) took place in various industries, but the size of the largest deals was usually smaller in 2010 than in 2008 and 2009. High levels of corruption, lack of competition and a distorted dialogue between the state, business and society are main barriers to the rapid growth of inward FDI. The recent global financial and economic crisis has revealed weaknesses of the Russian model of development in the 2000s. It is doubtful whether the efforts currently under way by the Russian Government to “repair” the existing model without political and economic reforms will lead toward a major improvement of the investment climate as only slight changes are being made (e. g., the improvement of the Russian migration regime and the development of special economic zones). However, the federal elections in 2012 could lead to more efficient steps, although it is difficult to predict the scale of probable positive shifts in the investment climate.
Topic:
Development, Economics, and International Trade and Finance
Political Geography:
Russia

32. Inward FDI in Uruguay and its policy context

Author:
Graciana del Castillo and Daniel García
Publication Date:
08-2012
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
An analysis of trends in foreign direct investment (FDI) in Uruguay is difficult due to data problems. Nevertheless, balance-of-payments data reveal that inward FDI (IFDI) increased sharply in the second half of the decade 2002-2011 under analysis. IFDI flows relative to GDP rose annually on average to close to 6% in 2005-2011. This compares favorably with annual average flows of only 1% in the decade before the banking crisis and the sharp devaluation of the Uruguayan peso in 2002. At the time, investment in natural resources, including in farmland and real estate in Punta del Este, became very attractive. IFDI flows peaked at 7.5% of GDP in 2006, with the investment in the construction of the first cellulose plant in the country by a multinational enterprise (MNE) from Finland. The rapid increase in IFDI in the second half of the past decade took place amid high rates of economic growth (averaging about 6% a year on average), in combination with an adequate policy and regulatory framework and fiscal incentives to foreign investors. So far, Uruguay remains primarily a host country for FDI, with outward FDI (OFDI) that has been and continues to be insignificant.
Topic:
Development, Economics, International Trade and Finance, and Foreign Direct Investment
Political Geography:
Latin America

33. The backstory of China and India's growing investment and trade with Africa: Separating the wheat from the chaff

Author:
Harry G. Broadman
Publication Date:
02-2011
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
The dramatic increase in recent years of trade and foreign direct investment (FDI) in sub-Saharan Africa by firms from Asia—notably China and India—has become an emotionally charged issue. This is not surprising, since the resulting greater integration into international markets is exposing African firms and workers to greater competition, an inevitable by-product of development in today's globalized economy. Most assessments of this topic, with few exceptions, have relied on anecdotes and subjective judgments. Meaningful policy recommendations require systematic, objective analysis.
Topic:
Development
Political Geography:
Africa, China, India, and Asia

34. Emerging challengers in knowledge-based industries? The case of Indian pharmaceutical multinationals

Author:
Gert Bruche
Publication Date:
07-2011
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
The growth of outward foreign direct investment (FDI) from developing countries and of a new generation of “emerging multinational enterprises” (EMNEs) has stimulated a flurry of publications. EMNEs have been portrayed as on their way to adulthood, latecomers that leapfrog into advanced positions, emerging giants, and challengers of conventional multinational enterprises (MNEs) from advanced economies.
Topic:
Development, Economics, and Foreign Direct Investment
Political Geography:
South Asia and India

35. Why and how least developed countries can receive more FDI to meet their development goals

Author:
Ken Davies
Publication Date:
06-2011
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
The 48 least-developed countries (LDCs), most of them in sub-Saharan Africa and a few in Asia, need foreign direct investment (FDI) to help meet their development targets. The FDI they now receive, although inadequate, is enough to demonstrate that investors see potential in them. It is therefore realistic for LDCs to seek more FDI, but they need to enhance their investment environments to attract it in the much greater quantities required. Donors can help by targeting official development assistance (ODA) on investment in human capital and supporting governance improvements. Meanwhile, LDCs should establish effective investment promotion agencies (IPAs).
Topic:
Development, Economics, Poverty, Foreign Aid, and Foreign Direct Investment
Political Geography:
Africa and Asia

36. The role of multinationals in sparking industrialization: From "infant industry protection" to "FDI-led industrial take-off"

Author:
Terutomo Ozawa
Publication Date:
06-2011
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
Although not yet fully conceptualized as a new catch-up model in mainstream development economics, the infant industry argument (protectionism designed to replace imports with domestic substitutes) is giving way to a foreign direct investment (FDI)-led model of industrialization.
Topic:
Development, Economics, Industrial Policy, and Foreign Direct Investment
Political Geography:
United States, Japan, and China

37. Shaping global business conduct: The 2011 update of the OECD Guidelines for Multinational Enterprises

Author:
Manfred Schekulin
Publication Date:
09-2011
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
On May 25, 2011, US Secretary of State Hillary Clinton joined ministers from members of the Organisation of Economic Co-operation and Development (OECD) and developing economies to celebrate the Organisation\'s 50th anniversary and agree on an update of the OECD Guidelines for Multinational Enterprises, the fifth revision since their adoption in 1976. This marked the culmination of an intense one-year negotiating process involving a large number of stakeholders, international organizations and emerging economies.
Topic:
Development, Economics, International Cooperation, and Foreign Direct Investment
Political Geography:
United States

38. Inward FDI in Egypt and its policy context

Author:
Ahmed Kamaly
Publication Date:
10-2011
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
Egypt, starting from the second half of the first decade of the 21st century, has begun to realize its potential as an important recipient of foreign direct investment (FDI) among developing economies. Having received only US$ 500 million of inward FDI (IFDI), amounting to 0.5% of GDP in 2001, Egypt attracted US$ 9.4 billion (approximately 5.7% of GDP), in 2008. While investment in oil and gas accounted for a large share of IFDI (over half in 2006-2009), the remainder is fairly well diversified. Developed economies account for three-quarters of Egypt's IFDI, but the share of emerging markets has risen recently. Largely because of the global financial crisis, inflows dropped in 2009, by 30%. IFDI is likely to be adversely affected in 2011 following the political turbulence associated with the January 25 Revolution. However, this democratic transformation carries the seeds of genuine political stability based on effective institutions and the rule of law, which would encourage long-term domestic and foreign investment.
Topic:
Development, Economics, Markets, and Foreign Direct Investment
Political Geography:
Arabia, North Africa, and Egypt

39. Outward FDI from Colombia and its policy context

Author:
Ana-María Poveda Garcés
Publication Date:
09-2011
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
Outward foreign direct investment (OFDI) from Colombia has increased considerably in the past decade, with its stock growing from US$ 3 billion in 2000 to US$ 23 billion in 2010. This growth reflects the internationalization of the Colombian economy following policy reforms and economic liberalization in the 1990s. The 2000s were characterized by enhanced national security and reforms to the investment framework that have attracted unprecedented levels of inward FDI and facilitated the growth of small and medium-sized enterprises (SMEs). A considerable rise in domestic mergers and acquisitions (M) in the past decade has contributed to the development of Colombian multinational enterprises (MNEs) and to increased OFDI from Colombia. In 2010, outflows showed a twenty-fold increase from their value in 2000, including an increase in OFDI to export markets, helped by greater government support for OFDI, for example by the conclusion of more international investment agreements. The rise of Colombian MNEs, or "translatinas" (i.e. Latin American MNEs whose OFDI is primarily within Latin America), reflects Colombia's nascent structural transformation into a knowledge-based economy. Together with Chile and Peru, Colombia has recently created the first regionallyintegrated stock exchange in the region, the Mercado Integrado Latinoamericano (MILA), which is likely to facilitate FDI flows.
Topic:
Development, Economics, Markets, and Foreign Direct Investment
Political Geography:
Colombia and Latin America

40. Investment incentives and the global competition for capital

Author:
Kenneth P. Thomas
Publication Date:
12-2011
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
Investment incentives (subsidies designed to affect the location of investment) are a pervasive feature of global competition for foreign direct investment (FDI). They are used by the vast majority of countries, at multiple levels of government, in a broad range of industries. They take a variety of forms, including tax holidays, grants and free land. Politicians, at least in the United States, may have good electoral incentives to use them.
Topic:
Development, Environment, Globalization, International Trade and Finance, Foreign Aid, and Foreign Direct Investment
Political Geography:
United States and Europe

41. Knowledge, FDI and catching-up strategies

Author:
Francisco . Sercovich
Publication Date:
12-2011
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
A recent Perspective by Terutomo Ozawa singles out protectionism and foreign direct investment (FDI) as alternative drivers for the take-off phase of catching-up industrialization. This dichotomy neglects the rich and nuanced variety of strategic options revealed by recent successful industrialization experiences.
Topic:
Development, Economics, International Trade and Finance, Science and Technology, and Foreign Direct Investment

42. FDI in retailing and inflation: The case of India

Author:
Nandita Dasgupta
Publication Date:
12-2011
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
India's food price inflation is a major driving factor behind the country's overall accelerating inflation over the past few years. Agricultural food prices in particular have risen recently: over the past year vegetables have become costlier by 18%, pulses by 14%, milk by 10%, and eggs, meat and fish by 12%. The rise in fruit prices was, however, relatively smaller (5%), and the same happened for cereals (3%). This price escalation is largely due to an inefficient supply chain in agriculture. Some of the supply side constraints have been identified: poor agricultural productivity, lack of corporate involvement in agriculture, ceilings on landholding size, existence of middlemen, hoarding, and, more importantly, insufficient cold storage facilities and transportation infrastructure. Around 50% of fresh produce in India rots and goes to waste between the farm gate and the market because of inadequate cold storage facilities and a poor distribution network. These factors unfavorably affect agricultural supply, create a supplydemand gap and help raise food prices.
Topic:
Security, Agriculture, Development, Economics, Food, and Foreign Direct Investment
Political Geography:
South Asia and India

43. Inward FDI in Italy and its policy context

Author:
Marco Mutinelli and Lucia Piscitello
Publication Date:
12-2011
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
The attractiveness of the Italian economy for inward foreign direct investment (IFDI) has been traditionally limited, despite the country's locational advantages such as a large domestic market and a skilled labor force. The recent global crisis worsened the country's IFDI position, with flows falling from US$ 40 billion in 2007 to -US$ 11 billion in 2008 before recovering to US$ 20 billion in 2009 but down again to US$ 9 billion in 2010. Although the country's IFDI stock had grown since 2000 at a rate similar to that of the European Union as a whole, in 2010 IFDI stock contracted vis-à-vis 2009, reflecting how Italy, compared to other key European countries and to its own potential, continues to underperform. The main obstacles to exploiting the country's potential for IFDI lie both in the largely insufficient actions undertaken to attract and promote IFDI, and especially in the lack of coordination with other relevant policy measures (e.g. infrastructure development) within a broader framework aimed at regional and national development.
Topic:
Development, Economics, International Trade and Finance, and Foreign Direct Investment
Political Geography:
Europe and Italy

44. The times they are a-changin' -- again -- in the relationships between governments and multinational enterprises: From control, to liberalization to rebalancing

Author:
Karl P. Sauvant
Publication Date:
05-2011
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
Governments seek to attract foreign direct investment (FDI) undertaken by multinational enterprises (MNEs) because it contributes to the growth of their economies; they seek to maximize the benefits of this investment in the framework of their national economies. Firms undertake FDI because it improves their access to markets and resources and hence increases their international competitiveness; they seek to maximize the benefits of this investment in the framework of their global corporate networks. This difference in objectives and frameworks gives rise to tensions that play themselves out in the approach governments take in national FDI policies and bilateral investment treaties (BITs). During the late 1960s and the 1970s, the dominant approach was to control MNEs. During the 1990s, it was liberalization -- and the approach is again changing.
Topic:
Development, Economics, Government, Monetary Policy, and Foreign Direct Investment

45. Will China relocate its labor-intensive factories to Africa, flying-geese style?

Author:
Terutomo Ozawa and Christian Bellak
Publication Date:
08-2010
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
China has developed increasingly close economic relations with Africa in its quest for oil and minerals through investment and aid. The World Ban k recently called upon China to transplant labor-intensive factories onto the continent. A question arises as to whether such an industrial relocation will be done in such a fashion to jump-start local economic development—as previously seen across East Asia and as described in the flying-geese (FG) paradigm of FD.
Topic:
Development, Economics, and Industrial Policy
Political Geography:
Africa and China

46. Inward FDI in Colombia and its policy context

Author:
Miguel Posada Betancourt
Publication Date:
09-2010
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
Colombia used to be a synonym for violence and drugs, but not anymore. Today, the country has one of the best performing economies in Latin America, and violence levels have been dramatically reduced. The outgoing administration made improving investor confidence and the business environment one of the pillars of its policy. As a result of important reforms and aggressive campaigns to promote the country as an attractive location, inward foreign direct investment (IFDI) has risen to unprecedented levels. Due to these positive changes, Colombia has been designated a “top reformer” for the past four years in the World Bank's Doing Business reports, and the new Government has promised to maintain and reinforce efforts to attract foreign investment. Even though IFDI flows decreased in the past two years as a consequence of the economic and financial crisis, many foreign affiliates in Colombia achieved positive profits. A country that a decade ago was avoided is now in many investors' plans.
Topic:
Development, Economics, War on Drugs, and Foreign Direct Investment
Political Geography:
Colombia and Latin America

47. The pernicious institution of the party-appointed arbitrator

Author:
Hans Smit
Publication Date:
12-2010
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
As arbitration has grown by leaps and bounds, so has the role of the party-appointed arbitrator. Surprisingly, this has not led to increased inquiry into the appropriateness of having arbitrators appointed by the parties in general, or in arbitrations against states in particular. In my judgment, party-appointed arbitrators should be banned unless their role as advocates for the party that appointed them is fully disclosed and accepted. Until this is done, arbitration can never meet its aspiration of providing dispassionate adjudication by those with special skills and experience in a process designed to combine efficiency with expertise.
Topic:
Development, Politics, Foreign Direct Investment, and Law
Political Geography:
Colombia

48. State-controlled entities as claimants in international investment arbitration: an early assessment

Author:
Michael D. Nolan and Frédéric Sourgens
Publication Date:
12-2010
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
State-controlled entities (SCEs) are increasingly important participants in international investment flows and international trade. Cumulative FDI by sovereign wealth funds (SWFs) has reportedly reached US$100 billion. SWFs are significant equity investors in, and provide significant debt financing to, every kind of company, from professional sports franchises to container ports. In addition to the role of these funds, national oil companies are growing in regional and international importance. In many countries, other industries are also increasingly government-owned.
Topic:
Development, Government, Industrial Policy, International Trade and Finance, Political Economy, and Foreign Direct Investment
Political Geography:
United States

49. The global economic crisis and FDI flows to emerging markets: for the first time ever, emerging markets are this year set to attract more than half of global FDI flows

Author:
Laza Kekic
Publication Date:
10-2009
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
The global economic and financial crisis has had a major impact on foreign direct investment (FDI) flows. After declining in 2008 by 17% to US$1.73trn from US$2.09trn in 2007—the high point of a four- year long boom in cross-border mergers and acquisitions (M) and FDI—global FDI inflows are forecast to plunge by 44% to less than US$1trn in 2009. The big drop in 2009 is occurring despite the improvements in the global economy in recent months. A notable feature of trends in 2009 is that, for the first time ever, emerging markets are set to attract more FDI inflows than the developed world.
Topic:
Development, Economics, Foreign Direct Investment, and Financial Crisis
Political Geography:
United States

50. Indian FDI falls in global economic crisis: Indian multinationals tread cautiously

Author:
Jaya Prakash Pradhan
Publication Date:
08-2009
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
Just over a year ago, outward foreign direct investment (OFDI) from India seemed to be on a path of rapid and sustained growth. Its annual average growth of 98% during 2004–07 had been unprecedented , much ahead of OFDI growth from other emerging markets like China (74%), Malaysia (70%), Russia (53%), and the Republic of Korea (51%), although from a much lower base. Much of this recent growth had been fuelled by large-scale overseas acquisitions, however, and it faltered when the global financial crisis that started in late 2007 made financing acquisitions harder.
Topic:
Development, Economics, Foreign Direct Investment, and Financial Crisis
Political Geography:
Russia, China, Malaysia, India, and Korea

51. A new geography of innovation – China and India rising

Author:
Gert Bruche
Publication Date:
04-2009
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
With some delay, the internationalization of business R is following the globalization of production. Starting on a small scale during the 1970s and 1980s, the emergence of globally distributed R networks of multinational enterprises (MNEs) accelerated rapidly in the 1990s. The “globalization of innovation” was facilitated and driven by a complex set of factors, including changes in trade and investment governance, improved intellectual property rights through TRIPS, the growing ease and falling cost of communicating and traveling around the globe, and the concomitant vertical industry specialization and unbundling of value chains. The growing and sustained level of cross-border M was one major direct driver, often having the effect that merged firms inherited multiple R sites in a number of countries.
Topic:
Development, Economics, and Foreign Direct Investment
Political Geography:
China, India, and Asia

52. Outward investment by Trans-Latin enterprises: reasons for optimism

Author:
Michael Mortimore and Carlos Razo
Publication Date:
08-2009
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
Despite the current economic crisis, outward foreign direct investment (OFDI) by Latin American and Caribbean enterprises continued its upward trend in 2008 (annex figure 1). OFDI by firms in the region reached nearly USD 35 billion in 2008, an increase of 42% with respect to 2007 (ECLAC, 2009a). However, several of the factors that fostered such growth have recently changed, possibly affecting OF DI prospects for 2009. This Perspective briefly explores these changes and their potential effects on firms' investing behavior, as well as some important countervailing factors that may cushion the effects of the economic crisis on Latin American firms' investment plan.
Topic:
Development, Economics, International Trade and Finance, Markets, and Foreign Direct Investment
Political Geography:
Latin America and Mexico

53. The growth of Brazil's direct investment abroad and the challenges it faces

Author:
Luís Afonso Lima and Octavio de Barros
Publication Date:
08-2009
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
The internationalization of Brazilian companies is a relatively recent phenomenon. From 2000 to 2003, outward foreign direct investment (OFDI) averaged USD 0.7 billion a year. Over the four-year period 2004−2008, this average jumped to nearly USD 14 billion. In 2008, when global FDI inflows were estimated to have fallen by 15%, OFDI from Brazil almost tripled, increasing from just over USD 7 billion in 2007 to nearly USD 21 billion in 2008 (annex figure 1 below). Central Bank data put the current stock of Brazilian OFDI at USD 104 billion, an increase of 89% over 2003. Caution is in order about these figures, however, as in Brazilian outflows it is difficult to separate authentic FDI from purely financial investment under the guise of FDI. According to the most recent data, 887 Brazilian companies have invested abroad
Topic:
Development, Economics, International Political Economy, International Trade and Finance, Markets, and Foreign Direct Investment
Political Geography:
Brazil and Latin America

54. FDI Protectionism Is on the Rise

Author:
Karl P. Sauvant
Publication Date:
09-2009
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
Over the past two decades or so, countries have liberalized their FDI regulatory frameworks and have put in place an international investment law regime that provides various protections for international investors. In the past few years, however, there are signs that countries are reevaluating their approach toward such investment. As a result, FDI protectionism is on the rise, with screening of inward M becoming more frequent. Typically, this is being done under the guise of "national interest" or similar concepts, often linked to strategic sectors and national champions. While the international investment law regime faces a challenge to find the right balance between the rights and responsibilities of governments and investors, care needs to be taken that the rise of FDI protectionism does not endanger a rules-based approach to FDI. An independent FDI Protectionism Observatory to monitor new protectionist measures and name and shame countries that take them is therefore needed.
Topic:
Development, Economics, and Foreign Direct Investment

55. Investment Opportuntities in Mekelle, Tigray State, Ethiopia

Author:
Bryant Cannon
Publication Date:
12-2009
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
Mekelle, a rapidly developing city in northern Ethiopia, is located about 780 km from the capital, Addis Ababa. Established nearly 150 years ago by Emperor Yohannes, the city is nestled in Ethiopia's temperate highlands, in the heart of a region that traces its origins back to the ancient Axum Empire that once controlled Red Sea trade (4th century BC – 10th century AD). The city maintains aproud history of many religions, particularly Orthodox Christianity, dating back to the 4th century AD. Mekelle was largely ignored in the latter half of the 20th century by Ethiopia's ruling feudal and socialist governments, but began to experience an economic and cultural rejuvenation with the election of a democratic government in Ethiopia in the early 1990s.
Topic:
Development, Economics, International Trade and Finance, and Foreign Direct Investment
Political Geography:
Africa and Ethiopia

56. Bamboo Bikes in Kisumu, Kenya

Author:
Katherine Athanasiades, Michelle Eames, Riham Hussein, and Young Rhee
Publication Date:
12-2009
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
This study was undertaken by Columbia University's School of International and Public Affairs (SIPA) with support from the Millennium Cities Initiative (MCI) at The Earth Institute. The MCI was launched in 2006 to assist selected midsized cities across sub-Saharan Africa in their efforts to achieve the Millennium Development Goals (MDG).
Topic:
Development
Political Geography:
Africa and AustralAsia

57. Foreign Direct Investment in Blantyre, Malawi: Opportunities and Challenges

Author:
Sawa Nakagawa, Abhinav Bahl, Meron Demisse, Megumi Ishizuka, Francisco Miranda, and Kwi Young Sung
Publication Date:
04-2009
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
The Earth Institute at Columbia University launched the Millennium Cities Initiative (MCI), an urban counterpart to the Millennium Villages Project (MVP), to assist nine mid-sized cities across sub-Saharan Africa in achieving the Millennium Development Goals (MDGs). MCI provides research and policy analysis to the cities in order to attract foreign direct investment (FDI). Increased FDI flows create employment opportunities by fostering local enterprise development and sustainable economic growth. In addition, MCI is helping the Millennium Cities to carry out needs assessments in a number of social sectors. The data from these assessments will enable MCI to generate integrated City Development Strategies to help each city meet the MDGs.
Topic:
Agriculture, Development, and Foreign Direct Investment
Political Geography:
Africa, United States, and United Kingdom

58. Assessing Infrastructure Constraints on Business Activity in Blantyre, Malawi

Author:
Zaki Raheem
Publication Date:
04-2009
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
In Blantyre, Malawi , population and economic growth are placing great stress on the city's infrastructure systems. As Malawi's industrial capital, long-term improvements to Blantyre's infrastructure are necessary to generate employment, strengthen rural-urban market linkage s, and improve the regional and global competitiveness of the city's industries.
Topic:
Development, Infrastructure, and Foreign Direct Investment
Political Geography:
Africa

59. The FDI recession has begun

Author:
Karl P. Sauvant
Publication Date:
11-2008
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
With $1.8 trillion (according to UNCTAD), world foreign direct investment (FDI) flows reached an all-time high last year. All major regions benefitted from increased flows. But that was then. What is, and will be, the impact of the financial crisis and the recession on FDI flows this year and next?
Topic:
Development, Economics, International Trade and Finance, Foreign Direct Investment, and Financial Crisis

60. Kumasi Marketing Strategy: Tourism

Author:
Dario Cacciatore, Andre Le, Nicholas Levi-Gardes, Antonio Lopez Reus, and Kenny Sai-Kin Hsu
Publication Date:
09-2008
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
Kumasi needs to position itself strategically as a cultural destination, communicate its attributes more effectively to tourists already in Ghana and differentiate itself from other cities and attractions Position should entail marketing a larger cultural region than just Kumasi Several positioning statements can transmit Kumasi's new marketing strategy: Kumasi - Heart of the Kingdom of Ashanti. Ashanti - The Hidden Kingdom. Kumasi - Come and See! Kumasi is well placed to capitalize on the growth of tourism in Ghana due to its status as a cultural capital The financial impact of tourism growth is potentially significant for the city and its surrounding districts The creation of the Ashanti Region Marketing Corporation is fundamental to proper coordination among stakeholders.
Topic:
Development, Economics, International Trade and Finance, and Markets
Political Geography:
Africa

61. Assessing Infrastructure Constraints on Business Activity in Kumasi, Ghana

Author:
Ginger Baker
Publication Date:
09-2008
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
The development of urban infrastructure is intimately connected with the process of economic growth. Businesses depend on reliable water and electricity sources, affordable and plentiful land for expansion and modern transportation networks to reach the markets they serve. Inadequate infrastructure can deter investments and lead to a general climate of economic decline.
Topic:
Development, Economics, Markets, and Infrastructure
Political Geography:
Africa and Ghana

62. Bamboo Bicycles in Kumasi, Ghana

Publication Date:
04-2008
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
The primary objective of this study was to assess the feasibility and investment opportunity of implementing a bamboo bicycle production facility in Kumasi, Ghana, in conjunction with the Millennium Cities Initiative (MCI) at Columbia University. For this assessment, desk-based research and interviews with industry and regional subject matter specialists were completed to assist with the following objectives: Understand the current transportation modes and bicycle market in Ghana Assess customer needs in Ghana to determine the suitability of a bamboo bicycle for rural use Identify the potential market size and demand Understand the operational considerations and costs associated with implementing a production facility Estimate the financial returns from investing in this opportunity.
Topic:
Development and Markets
Political Geography:
Africa and Ghana

63. Assessing Infrastructure Constraints on Business Activity in Kisumu, Kenya

Author:
Jacob Winiecki
Publication Date:
10-2008
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
The success of commercial activities in any city depends in great part upon the quality of infrastructure services available to businesses including (but not limited to) reliable electricity and liquid fuel supplies to power engines, sufficient supplies of clean water for irrigation and industrial processes, and reliable roads for obtaining raw materials and transporting finished goods in a timely and cost efficient manner. Poor quality infrastructure can drive up the cost of doing business and constrain economic growth in any city.
Topic:
Development, Infrastructure, and Foreign Direct Investment
Political Geography:
Kenya and Africa

64. Sugar in Kisumu,kenya

Publication Date:
11-2008
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
An investor, seeking to financially benefit from producing sugar as a commodity in Kisumu, Kenya, needs to consider the entire investment environment before making a decision. Since Kenya is a net importer of sugar, domestic demand cannot be satisfied by domestic production, which creates a potential opportunity for an investor looking to bridge the gap. As a result, an opportunity may exist for an investor who wants to play a significant role in the future of the industry. Sugar, produced as a commodity within Kisumu, may have the ability to compete on a global scale if time, investment, and governmental support align.
Topic:
Agriculture, Development, Globalization, Markets, and Foreign Direct Investment
Political Geography:
Kenya and Africa