Erasmus University hosts launch UNCTAD’s World Investment Report 2011
According to the UNCTADS’s World Investment Report 2011, global FDI flows are expected to recover to pre-crisis level this year. The Dutch launch of the 2011 report was hosted by Erasmus University Rotterdam.
World Investment Report 2011
This year’s report is titled “ Non-equity modes of international production and development.” The report focuses on the strategic use of non-equity modes by transnational corporations (TNCs) in their management of global value chains and international operations. Additional highlights include a discussion of the interplay between foreign direct investment (FDI) and industrial policy, as well as an assessment of the origin, rise and global map of state-owned transnational corporations.
Global FDI to recover to pre-crisis level this year
Global FDI has not yet recovered fully to its pre-crisis level, but seems likely to do so this year. FDI flows rose moderately to $1.24 trillion in 2010, but were still 15 per cent below their pre-crisis average. This is in contrast to global industrial output and trade, which were already back to pre-crisis levels. In 2010, developing economies absorbed close to half of global FDI flows for the first time. UNCTAD estimates that global FDI will recover to its pre-crisis level in 2011, increasing to $1.4–1.6 trillion, and approach its 2007 peak in 2013. This positive scenario holds, barring any unexpected global economic shocks that may arise from a number of risk factors still in play. This recovery will represent both a huge opportunity and a challenge for policymakers in all countries. Above all, the challenge for the development community will be to make investment work towards achieving the Millennium Development Goals.
Strong position for Dutch TNCs
The FDI flows in the Netherlands still show a stark contrast with pre-crisis flows. Inward FDI flows in the Netherlands were negative in 2010, while FDI outflows were less than half of its value in 2008. The Netherlands does keep its strong presence amongst international TNCs. The ING group and Aegon are amongst the 50 largest financial TNCs of the world, ranking 15 and 45 in 2009 respectively. Amongst the 100 largest non-financial TNC the Netherlands is represented by Royal Dutch Shell (ranked 2 nd), Unilever (54 th) and Philips Electronics (66 th). Unilever is also amongst the top 10 most international companies of the world, measured by the amount of foreign assets, sales and employees that the company has.
SCOPE
Since 1996, the <link erim research centres scope _self>SCOPE centre - in cooperation with UNCTAD - compiles well-published lists of the largest Transnational Corporations in the world from developed and developing countries. The list is annually published in the World Investment Report. The SCOPE centre on international business and sustainable development is directed by <link people rob-van-tulder _self>Rob van Tulder.
About The World Investment Report
The World Investment Report (WIR) is an annual publication released by the United Nations Conference on Trade and Development (UNCTAD) on global and regional trends in foreign direct investment and related policy developments at the national and international levels.
