In a video conference to be held Monday, December 10, 2007, UNCTAD will present its World Investment Report 2007 to two members of the UNCTAD Virtual Institute actively engaged in trade and investment training and research -- the State University Higher School of Economics, Moscow, and St. Petersburg State University.
The report´s authors will discuss the causes and consequences, as well as policy implications, of the recent upsurge in foreign investment in extractive industries -- the main focus of the report this year. The report argues that the current commodities boom triggered by rising demand from Asia provides opportunities for development and poverty alleviation in mineral and oil/gas-exporting countries. Foreign investment through transnational corporations may contribute capital, technology and management skills, and increase government revenues and the countries´ income in general. At the same time however, it raises concerns about unequal bargaining powers and sharing of revenues between the TNCs and host countries, and possible environmental, social and political impact on host countries.
According to the report, there is a need for concerted efforts to leverage the development potential of extractive industries and translate it into poverty alleviation and economic and social development. In the host country, clear government strategies and transparent mechanisms for using export revenues are necessary, as well as an appropriate legal framework for sharing of profits with foreign investors. Home-country governments should promote responsible behaviour by TNCs investing in extractive industries abroad, and the international community should provide technical assistance, help develop relevant standards and guidelines and monitor their implementation.
The presentation provides an opportunity to share and discuss the most recent UNCTAD research on foreign direct investment with academia in the Russian Federation -- a country with an important development potential in extractive sectors. At the same time, it furthers the aim of the Virtual Institute to support its member universities in their teaching and research of trade, investment and development issues -- an objective supported by the Permanent Mission of the Russian Federation in Geneva, which will contribute to the discussions during the presentation.
