In this context, the latest issue of the World Investment Report (WIR) by the United Nations Conference on Trade and Development is an important read. It provides us with insights into how FDI could continue to drive economic development in Asia, and, indeed, there is a lot of good news for Asia in this report.
The right foreign direct investment (FDI) can transform a developing country. Its potential for transformation goes beyond just generating higher economic growth numbers for a few years.
The more important aspect of FDI is that it brings to a less developed country a ready-made package of capital, skills training, new technology, market access, product development and branding and management capacity that would take a country a generation to replicate. This is why FDI has been instrumental in the economic development successes of regions such as Southeast Asia and Eastern Europe.
