PREFACE The global financial and economic recovery remains fragile, threatened by emerging risks, constraints in public investment and other factors. For the recovery to remain on track, private investment is crucial for stimulating growth and employment. Foreign direct investment (FDI) has a major role to play. The <strong>World</strong> <strong>Investment</strong> <strong>Report</strong> <strong>2010</strong> highlights a promising outlook: after a significant global FDI downturn in 2009, flows worldwide are expected to recover slightly this year, with a stronger recovery in 2011 and 2012. Overall, countries continue to liberalize and promote foreign investment, although there has also been an increase in new policy measures regulating foreign investment. Countries remain receptive towards FDI, seeing it as an important external source <strong>of</strong> development finance. This year’s <strong>Report</strong> focuses on climate change, and in particular the role <strong>of</strong> transnational corporations. As enterprises with formidable knowledge, cutting-edge technology, and global reach, TNCs are necessarily among the primary actors in the global effort to reduce greenhouse gas emissions and shift towards a low-carbon economy. The <strong>Report</strong> stresses that with the right policy initiatives, incentives and regulatory framework, TNCs can and must contribute significantly to both mitigation and adaptation. It also proposes a global partnership to galvanize low-carbon investment and advocates concrete initiatives such as a new technical assistance centre to support policy formulation and implementation in developing countries. This twentieth anniversary edition <strong>of</strong> the <strong>World</strong> <strong>Investment</strong> <strong>Report</strong> continues the series’ tradition <strong>of</strong> serving as a leading reference for policymakers, investment promotion agencies, business, academia, civil society and others. The series has been contributing to investment policy-making at the national and international levels. I commend it to all involved in our common quest to build a better world for all. BAN Ki-moon New York, June <strong>2010</strong> Secretary-General <strong>of</strong> the United Nations � iii
iv <strong>World</strong> <strong>Investment</strong> <strong>Report</strong> <strong>2010</strong>: Investing in a Low-Carbon Economy ACKNOWLEDGEMENTS The <strong>World</strong> <strong>Investment</strong> <strong>Report</strong> <strong>2010</strong> (WIR10) was prepared by a task force under the direction and management <strong>of</strong> James Zhan. The core task force members include Quentin Dupriez, Masataka Fujita, Thomas van Giffen, Michael Hanni, Fabrice Hatem, Kalman Kalotay, Joachim Karl, Ralf Krüger, Guoyong Liang, Sarianna Lundan, Anthony Miller, Hafiz Mirza, Nicole Moussa, Malte Schneider, Astrit Sulstarova, Elisabeth Tuerk, Jörg Weber and Kee Hwee Wee. Kiyoshi Adachi, Amare Bekele, Hamed El Kady, Jan Knörich, Abraham Negash, Lizzie Medrano, Matthias Maier, Shin Ohinata, Sergey Ripinsky, Diana Rosert, Christoph Spennemann, Yunsung Tark and Dong Wu also contributed to the <strong>Report</strong>. Research and statistical support was provided by Mohamed Chiraz Baly, Bradley Boicourt, Lizanne Martinez, Sara Tougard de Boismilon and the interns Wolfgang Alschner, Jan-Christoph Kuntze, Jia Lin, Katlego Moilwa, Celeste Simone Owens, and Peter-Jan Zijlema. Production and dissemination <strong>of</strong> the WIR10 was supported by Tserenpuntsag Batbold, Séverine Exc<strong>of</strong>fier, Natalia Meramo-Bachayani, Madasamyraja Rajalingam, Chantal Rakotondrainibe and Katia Vieu. It was edited by Caroline Lambert, copy edited by <strong>UN</strong>CTAD’s editor, cover designed by Sophie Combette and desktop published by Teresita Ventura. WIR10 benefited from the advice <strong>of</strong> Peter Buckley. Specific inputs were received from Anne Arquit-Niederberger, Tudor Constantinescu, Pietro Erber, Jonathan Gage, Jayme Buarque de Hollanda, Thomas Jost, Hyojin Kim, Padma Mallampally, Marcus Orellana, Steven Porter, Raymond Saner, Claudia Salgado and Han-koo Yeo. WIR10 also benefited from comments and suggestions provided by participants at a brainstorming meeting in Geneva in November 2009 and a seminar on WIR10 in May <strong>2010</strong>. Comments and suggestions were received during various stages <strong>of</strong> preparation from Laura Altinger, Lucas Assunção, Anna Autio, Matthew Bateson, Nathalie Bernasconi, Richard Bolwijn, Anatole Boute, Thomas Brewer, Douglas Brooks, Jeremy Clegg, Paul Clements-Hunt, Rudolf Dolzer, Lorraine Eden, Michael Ewing-Chow, Heiner Flassbeck, Susan Franck, Kai Remco Fischer, Kevin Gallagher, Stephen Gelb, Charles Gore, Eric Haites, Wahid Ben Hamida, Michael Herrmann, Elke Hoekstra, Ulrich H<strong>of</strong>fmann, Jeff Huang, Gábor Hunya, Anna Joubin-Bret, John Kline, Ans Kolk, Robert Lipsey, Yuebing Lu, Nannan Lundin, Michael Mortimore, Peter Muchlinski, Samson Muradzikwa, Lilach Nachum, Rajneesh Narula, Richard Newfarmer, Federico Ortino, Terutomo Ozawa, Sheila Page, Guido Palazzo, Nicolas Perrone, Jonatan Pinkse, Christos Pitelis, Eric Ramstetter, Matthias Rau-Göhring, Mohammad Reza Salamat, Thomas Scott, Josef Schmidhuber, Sophia Twarog, Peter Utting, Kenneth Vandevelde, Dirk te Velde, Obie Whichard, Henning Wuester, Peter Wooders, Stephen Young and Zbigniew Zimny. Numerous <strong>of</strong>ficials <strong>of</strong> central banks, statistical <strong>of</strong>fices, investment promotion and other government agencies, and <strong>of</strong>ficials <strong>of</strong> international organizations and non-governmental organizations also contributed to WIR10. The <strong>Report</strong> also benefited from collaboration with Erasmus University, Rotterdam, in the collection <strong>of</strong> data on the 100 largest TNCs. The financial support <strong>of</strong> the Governments <strong>of</strong> Finland, Norway and Sweden is gratefully acknowledged.
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EPILOGUE 155 (WIR09); international
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REFERENCES 159 References Abbott, F
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REFERENCES 161 G8 (2009b). “Respo
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REFERENCES 163 National Science Boa
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REFERENCES 165 UNCTAD (2009h). The
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