UNCTAD´s Expert Meeting on FDI in extractive industries will identify key issues associated with TNCs in these industries. It will examine potential economic, social and environmental impacts of foreign investment on the host economy and discuss various policy options aimed at ensuring development gains from FDI in natural resources.
The role of transnational corporations (TNCs) in extractive industries has attracted renewed attention in recent years, partly as a result of rising commodity prices. During the past 15 years or so, TNCs have come to play a significant role in many developing countries, including in least developed countries and transition economies. In hard-rock mining, the involvement of TNCs has taken the form of foreign direct investment (FDI). In the oil and gas industry, given the pre-eminent role of State-owned enterprises (SOEs) in this industry, it has often taken the form of agreements between States and TNCs. Reflecting the desire of some developing countries to access natural resources, their SOEs have recently started investing abroad, adding an important South-South dimension to the role of TNCs in extractive industries.
Host developing countries are continuing to seek a balance between creating appropriate business conditions for TNC participation in extractive industries and increasing benefits to the host economy from such participation. At the same time, they are seeking to minimize environmental and social costs. Consequently, beyond the economic dimension, increased attention is being paid to environmental, social and political considerations.
| Papers and Presentations |
| Investment, Technology and Enterprise Development |
| Commodities Branch |
