Putting it to Work in Developing Countries - Nathan Associates

preceding functions. Such evaluations should
highlight failures as well as successes and
concentrate on understanding cause and effect.
• Knowledge management to assemble, digest,
and organize information on all dimensions of
attracting and maximizing the benefits of
FDI. This could result in best practice models
and toolkits for any or all priority assistance
functions in each technical area. Best practices
would be widely disseminated among host
countries, development practitioners, and
other donors.
SUMMING UP
Foreign direct investment is a potent economic
force worldwide. For developing countries it is
the largest and most stable source of external
finance and, as such, a critical variable in the
market-oriented, export-based strategies that
many have embraced. With renewed growth in
the global economy, FDI inflows to the developing
world have indeed risen again, resuming
their long-term trend of the past 30 years. These
new and larger inflows will present policymakers
in developing countries new opportunities—as
well as new and greater responsiblities—for
making the most of FDI. The policy implementation
issues involved in making FDI work for
development are complex and challenging.
Resolving them will ultimately depend on the
problem-solving expertise and the political will
of developing country governments and business
communities. But in this globalized world,
USAID and others in the donor community
stand to play a critical role in helping host countries
make FDI work for development.
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