Poorest countries need investment to join global flows

Foreign direct investment in least developed countries should continue and grow so that they can be incorporated in the flows of global economic recovery.

They showed a report by the United Nations Conference on Trade and Development (UNCTAD) released today.

“Although some less developed countries have recently received FDI flows and that has allowed them to join the global value chains, most of them sit on the sidelines of the global economy,” says the text.

The report notes that direct investment in these countries have grown steadily during the past decade, reaching $ 24,000 million.

However, this flow accounts for only 2% of total world investment.

Therefore, the UNCTAD calls for more investments are made and, above all, be more beneficial for the 48 receivers in this group of nations.

“We call for a new approach that will focus these investments on job creation and the consolidation of the productive capacities of these countries, ie their ability to produce a greater diversity of goods and goods more complex,” The report advocates.

According to the UNCTAD economists, most of the investments made in less developed countries are directed to the extractive industry “a sector that tends to create relatively few jobs.”

“In addition, this sector has a tendency to ‘fertilize’ the economy of these countries or to increase their ties between local companies and foreign companies, bonds that normally serve to disseminate knowledge and technology and help stimulate economic growth durable, “reads the text.

For this reason, the study recommends the creation of “a fund for infrastructure development in less developed countries, to increase the capacity of these nations to attract investment thanks to the modernization of infrastructure” such as electricity supply the road and rail networks and computer and Internet connections. ”

This fund, according to UNCTAD, should provide innovative solutions and projects to promote the formation of public-private cooperation between the least developed countries and foreign investors.