[general_devel] FOREIGN DIRECT INVESTMENT POLICIES OF G20 NATIONS GENERALLY POSITIVE, SAYS UN REPORT

[Vern Weitzel]

Subject: FOREIGN DIRECT INVESTMENT POLICIES OF G20 NATIONS GENERALLY POSITIVE, 
SAYS UN REPORT
Date: Wed, 8 Jul 2009 13:01:11 -0400
From: UNNews <UNNews at un.org>
Reply-To: unnews at un.org
To: <news2 at secint00.un.org>

FOREIGN DIRECT INVESTMENT POLICIES OF G20 NATIONS GENERALLY POSITIVE, SAYS UN REPORT
New York, Jul  8 2009  1:00PM
A review conducted by the United Nations trade and development arm shows that 
the Group of 20 (G20) countries have for the most part refrained from taking 
policy measures that restrict foreign direct investment (FDI), but warns that 
some economic stimulus packages could give rise to “smart” protectionism.

A substantial number of the policies surveyed among the G20 – an informal forum 
comprising 19 nations and the European Union – by the UN Conference on Trade and 
Development 
(<"http://www.unctad.org/Templates/StartPage.asp?intItemID=2068">UNCTAD) were in 
fact conducive to facilitating investment, the agency says in a news release.

The review, which looked at policy developments between October 2008 and June 
2009, points to positive investment specific measures such as those that smooth 
the way for the entry of foreign investors or facilitate foreign investment 
projects in host countries.

Some countries have also enacted measures to encourage outward investment by 
domestic companies, including those for streamlining the approval process, and 
providing financing and insurance.

UNCTAD also notes that investment-related measures were positive, including the 
various State aid or economic stimulus packages enacted by a majority of 
countries in response to the economic and financial crisis.

At the same time, the report cautions against the emergence of what can be 
described as “smart” protectionism from economic stimulus packages. It adds that 
protectionist pressures could still arise as the crisis spreads to less-affected 
economic sectors and countries, and a “new wave of economic nationalism” could 
occur in the aftermath of the crisis.

The report on policy trends is part of the agency’s contribution to its flagship 
World Investment Report series, and seeks to help officials get the most out of 
FDI, which UNCTAD says is crucial to assisting both developed and developing 
countries recover from the ongoing crisis.
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For more details go to UN News Centre at http://www.un.org/news