What´s Next? Strategic Views on Foreign Direct Investment, a book about future trends and developments in global FDI, will be launched in Stockholm on Monday, 19 September (1).
The book, published by Invest in Sweden Agency (ISA) in cooperation with UNCTAD and the World Association of Investment Promotion Agencies (WAIPA), contains 20 articles by leading experts from academia, business, international organizations and investment promotion agencies (IPAs). "What´s Next?" provides a range of insights and analysis into the effects and future of FDI and investment promotion.
The book identifies what the next wave of FDI might look like, following the dramatic decline in investment flows of the past few years, addressing the likely new sectors, players and investment methods. The backdrop of current stagnation among the European Union economies, strong performance of Central and Eastern Europe, uncertain economic development in the US and the emergence of new economic centres of gravity like China and India will all have an impact on the FDI of the future, the book predicts.
"What´s next?" also addresses some of the most pressing questions being raised by the investment community, such as why some countries seem to benefit more from FDI than others; what policy initiatives can be taken to maximize the positive effects of FDI; and how new and evolving business strategies can work alongside other efforts to increase the attractiveness of countries and regions.
Key findings emerging from "What´s Next? Strategic Views on Foreign Direct Investment" include:
- Governments and international organizations have a key role to play in ensuring that FDI results in economic development and other benefits for host countries.
- The increasing complexity of FDI, including such components as venture capital and the intangible assets held by companies, highly skilled individuals and entrepreneurs. Capital flows from direct investment are important but do not tell the whole story.
- The constant need for new ideas and innovation to ensure that governments remain competitive in their ability to attract FDI. What´s next ?... addresses the nature of competitiveness and asks whether offshoring is the right solution for rescuing or developing a business.
- The focus of FDI is already shifting to new emerging economies. China, India and a number of other countries are not only competing for low-cost production but are also moving rapidly up the value chain. A lot is at stake for developed and developing countries; what should be done?
- Investment promotion is becoming more professional and business-oriented. Foreign investors have become much more targeted and precise in their demands. Emerging markets will attract more interest from IPAs worldwide, eventually at the expense of mature markets in Europe and North America. IPAs will need to identify and tackle these and other challenges of the future.< /ul>
"The book provides a snapshot of what we can all expect in FDI trends for the next five to 10 years", says Kai Hammerich, President of WAIPA and Director-General of ISA.
