Development and Globalization: - Unctad

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36 2.2 Foreign direct investment OVERVIEW DEFINITIONS The downturn in foreign direct investment (FDI) inflows in 2002 reinforced the trend towards liberalization of FDI policies and regulations. Like 2001, 2002 saw a record number of favourable changes in national FDI legislation. Indeed, during 1991–2002, 95% of the changes introduced by 165 countries in their FDI laws were in the direction of greater liberalization. The international policy dimension of countries’ efforts to attract FDI and benefit from it continues to intensify, especially at the bilateral, subregional, regional and interregional levels. The existing network of investment rules is laid out in a large number of bilateral investment treaties (BITs), free trade agreements with investment components, double taxation treaties (DTTs), regional trade agreements and multilateral agreements. Since 1959, the year of the first bilateral investment treaty, their number has grown steadily; they numbered 385 by 1989, and 2,181 in 2002, encompassing 176 countries. The number of DTTs has reached 2,256 in 2002. At the regional level, the trend is towards comprehensive agreements that include both trade-related and investment-related provisions. Out of 60 regional trade agreements in force, 65% contain specific chapters on investment, and 18% have general provisions on investment. At the international level, certain instruments dealing with specific aspects of investment exist, but efforts applied during the last 50 years to create comprehensive multilateral rules have not borne fruit. This network of agreements is multi-layered and multifaceted, with obligations differing in geographical scope and coverage and ranging from voluntary to binding, thus constituting an intricate web of commitments that partly overlap and partly supplement one another. To learn more ● Bilateral investment treaties (BITs) are agreements between two countries for the reciprocal encouragement, promotion and protection of investments in each other’s territories by companies based in either country. Treaties typically cover the following areas: scope and definition of foreign investment; admission and establishment; national treatment in the post-establishment phase; most-favoured-nation treatment; fair and equitable treatment; guarantees and compensation in the event of expropriation; guarantees of free transfers of funds and repatriation of capitals and profits; and dispute settlement provisions, both state-state and investor-state. ● Double taxation treaties (DTTs) are agreements between two countries to relieve the double taxation that occurs when income or gains are taxable in both countries. The treaties are designed to avoid double taxation; prevent tax evasion; promote international trade; create certainty and tax stability; provide mechanisms for resolving international tax disputes; promote tax incentives to developing countries; allocate taxing rights between contracting states; and prevent tax discrimination. DATA SOURCES [1] UNCTAD, World Investment Report 2003.59. UNCTAD runs a technical assistance programme on international investment agreements. The programme is designed to help developing countries participate as effectively as possible in international discussions on investment at the bilateral, regional and international levels. Key activities include publication of the series Issues in International Investment Agreements and of International Investment Agreements: A Compendium. The technical cooperation focuses on training sessions for negotiators, seminars for policy makers, advisory missions, and facilitation of negotiations of bilateral investment treaties and double taxation treaties. For more information visit www.unctad.org/iia.
Changes in national FDI regulations, 1992 - 2002 [1] Item 1992 1995 1999 2000 2001 2002 Number of countries that introduced changes in their investment regimes 43 64 63 69 71 70 Number of regulatory changes of which: 79 112 140 150 208 248 More favourable to FDIa 79 106 131 147 194 235 Less favourable to FDIb – 6 9 3 14 12 a Including liberalizing changes or changes aimed at strengthening market functioning, as well as increased incentives. b Including changes aimed at increasing control as well as reducing incentives. 250 200 150 100 50 0 Number of BITs and DTTs concluded, cumulative and yearly total [1] Concentration of BITs worldwide, 1 January 2003 [1] Bilateral and regional investment treaties 2.2 C Types of changes in laws, 2002 [1] (in %) 5 31 17 8 39 More liberal entry/operational conditions More sectoral liberalization More promotion (including incentives) More control (restrictions) More guarantees 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 BITs (total per year: left scale) DTTs (total per year: left scale) Total BITs (cumulative: right scale) Total DTTs (cumulative: right scale) 2 500 2 000 1 500 1 000 500 0 37
Page 1: 2004 Development and Globalization:
Page 4 and 5: ii Note Development and Globalizati
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Page 8 and 9: vi Contents Notes ii Foreword iii A
Page 11 and 12: 1 Countries, population and economi
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Page 15 and 16: 33 Exports by commodity group, 2001
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Page 19 and 20: 2001 1990 1980 1970 12 8 4 0 600 50
Page 21 and 22: Population structure by age, 2000 [
Page 23 and 24: 1970 2000 Illiteracy rate [1] Devel
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Page 27 and 28: 60 50 40 30 20 10 0 Participation o
Page 29 and 30: Share of nominal GDP by region, 200
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Page 34 and 35: OVERVIEW DEFINITIONS Total aggregat
Page 36 and 37: 26 2.1 External finance and debt OV
Page 38 and 39: OVERVIEW DEFINITIONS The total exte
Page 40 and 41: OVERVIEW DEFINITIONS Ratios of debt
Page 42 and 43: OVERVIEW DEFINITIONS Global foreign
Page 44 and 45: OVERVIEW DEFINITIONS In the past tw
Page 49 and 50: 3 Transnational corporations and fo
Page 51 and 52: World's top 50 non-financial TNCs i
Page 53 and 54: Largest transnational corporations
Page 55: Selected indicators of internationa
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Page 83 and 84: 5 Production and international trad
Page 85 and 86: Production of selected commodities
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Page 89 and 90: 1966 2000 Share of commodity export
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OVERVIEW DEFINITIONS Global industr
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90 6.2 International trade in manuf
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92 6.2 International trade in manuf
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7 Information and communication tec
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Developed countries Developed count
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100 90 80 70 60 50 40 30 20 10 4 00
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AFRICA 58 North Africa 7 Algeria Eg
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CEPGL 3 (Economic Community of the
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ANCOM Andean Community APEC Asia-Pa
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