New Horizons for International Investment and Sustainable Development

in The Journal of World Investment & Trade
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New Horizons for International Investment and Sustainable Development

in The Journal of World Investment & Trade


  • I Open Markets Matter: 7lie Benefits of Trade and 1111Jestmel1t Liberalisation, OECD, Paris, 1998.

  • 2 Approved at the WTO Ministerial Meeting in Doha, Qatar, November 2001. See Ministerial Declaration WT/MIN(01)/DEc./l, adopted 14 November 2001. 3 Draft Outcome, UN Doc. A/AC.257/L.13; available at: (,). 4 FDi Downturn in 2001 Touches almost all Reqions, UNCTAD Press Release No. 36, 21 January 2002. 5 Even the minority ofFDI that does go to developing countries is spread very unevenly, with two-thirds of total OECD FDI flows to non-OECD countries going to dynamic Asian and Latin American economies. However, these Fiji inflows do represent significant sums for many developing countries, several of them even recording FDI- to-gross-domestic-product ratios in excess of 50 percent.

  • " A forthcoming OECD study, Foreign Direct Investment and Development: Benefits and Cost, details empirical research and provides policy messages on this matter. 7 A European survey of 300 investment professionals recently revealed that Siti has established itself as an important sector of the investment industry. One in three reported that they or their organization offered clients an SRI option, and a further 15 percent had plans to do so. In the United States, there are now around 200 Ski mutual funds available to investors. There, and in much of Europe, Siki has grown at a far higher rate than conventional funds. " Supra, footnote 2. For further details, see: « e/dda e/dda e.htm#dohadcclaratiom>.

  • " The Brundtland Report, also known as Our Common Future and published by an international group of politicians, civil servants and experts on the environment and development, alerted the world to the urgency of making progress toward economic development that could be sustained without depleting natural resources or harming the environment; see: <�° Governance for Sustainable Development: Five 01-(.-1) Case Studies, OECD, Paris, February 2002. This publication presents five governmental experiments aimed at promoting sustainable development in Canada, Gern�any, Japan, the Netherlands and the United Kingdom. The five case studies illustrate specific institutional and decision-making efforts to adapt governance frameworks in order to respond to sustainable development challenges.

  • � � 5'�'����f' Development: Critical Issues, OECD, Paris, 2002. This report draws together different streams of work carried forward by the OECD in response to a mandate from OECD Ministers in 1998. It provides much of the analysis underpinning the policy recommendations. �= Eric Burgeat, OEGrUkrail1e Co-operation in the Field of International Investment, in OECD, Ukraine Investment Progress Report 2002, forthcoming.

  • U Rudolf Mueller, Good Governance is Critical, in OECD, ibid. 14 The OECD Convention on Combating Bribery addresses combating the bribery of foreign public officials in international business transactions. The Convention, inter alia, requires countries to establish the criminal offence of bribing a foreign public official and to have in place adequate sanctions and reliable means for detecting and enforcing the offence. The aim is to eliminate the "supply" of bribes to foreign officials, with each country taking responsibility for the activities of its own companies. The new chapter on combating corruption in the One)) Gaidelines for MNES and the disclosure and transparency chapter in the Oecd Principles of Corporate Governance provide a framework that discourages firms from engaging in acts of bribery.

  • �5 No Longer Business as Usual: Sighting Bribery and Corruption, OECD, Paris, 2000. �6 A good corporate governance regime helps to ensure that corporations use their capital efficiently while, at the same time, that they operate for the benefit of society as a whole. The OECD Principles of Corporate Governance can be used both by national governments as a benchmark against which they can evaluate and improve their laws and regulations and by private-sector parties that have a role in developing corporate governance systems and best practices.

  • CorporateCovernance:TheWayAhead, OECD, Paris, 1999. 18 In 1992, the Financial Action Task Force (FATF) was created to counter money laundering. It established forty Recommendations (now under review) which should guide governments in their fight against money laundering and later developed criteria to identify unco-operative jurisdictions.

  • 1') New financial centres may emerge to fill the demand for illicit havens left by the compliance of existing offshore financial centres with the new standards. OECD countries will continue to be the driving force behind initiatives to improve the integrity of financial markets. To maintain their moral leadership, they will need to be continually reviewing their own money laundering, law enforcement, supervisory and tax enforcement powers. This, in turn, will require balancing integrity needs against legitimate privacy and competition concerns. 21' Corporate Responsibility: Prinate Initiatives and Public Goals, OKD, Paris, 2001.

  • 21 Companies arc influenced by a number of factors when they set up their own "standards". Actually, OECD work shows that there are wide divergences among companies' commitments and practices. The need to comply with laws and regulations (which are often quite strict, even in developing countries) is a major consideration. Pressure from customers and civil society is also a factor in some sectors, especially those where such assets as corporate brand and reputation are important and need to be protected or those that are vulnerable to and wish to deflect hostile regulation.

  • zz In this Section, extensive use has been made of the work of the Oecd Secretariat.

  • 21 The Roundtable developed an Action Plan 2001, focusing on "Regional Image Building and Regional Il'A Capacity" to attract FDI. The criteria for individual programmes under the plan are a regional dimension; involvement of at least two countries in the region; being within current Iun organizational resources to carry out; a foreign partner/sponsor on board where required; and financing secured. The programme is of considerable interest to the other countries in the IPA Network. Specifically, Black Sea Economic Co-operation countries are being invited as observers to meetings of the Roundtable. The Action Plan has given the Roundtable a sense of achievement and solidarity and will be a feature of future Roundtable activities.

  • 24 See New Horizons for Foreign Direct Investment, OECD, Paris, March 2002, the edited proceedings of this Conference.

  • 25 Tables from the Statistical Annex of the 2001 OECD Development Co-operation Report can be accessed at: ,�. Current transfers from OECD countries to the rest of the world total US$ 53.7 billion as of 2000. Meeting the ODA target of 0.7 percent of the GDP of donor countries would raise the total of Oon to US$ 160 billion.

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