2022-03-23-联合国贸易发展委员会-对最不发达国家的外国直接投资（英）_16页_3mb

Context

• Programme of Action: The Istanbul Programme of Action (IPoA) 2011-2020 emphasized Foreign Direct Investment (FDI) as a channel to mobilize financial resources for sustainable development in Least Developed Countries (LDCs).

• LDC Commitment: LDCs committed to improving investment conditions and attracting private investment aligned with productive capacities and the Sustainable Development Goals (SDGs). Development partners pledged to support these efforts.

• FDI Performance: Despite policy reforms, FDI inflows to LDCs increased only marginally (nearly $28 billion by 2021, up from $20 billion in 2011). Their share in global FDI and developing countries' inflows remains low.

• COVID-19 Impact: The pandemic further hindered progress toward IPoA goals and SDGs, though FDI remains crucial for LDCs.

• Sectoral Focus: Investment trends vary by region: Asian LDCs saw growth, while African and island LDCs experienced declines. Extractive industries remain dominant, but there is a push for diversification into manufacturing and SDG-relevant sectors.

A. FDI Trends

Overall Trends

• Slow Growth: FDI inflows to LDCs grew at only 3% per year on average from 2011 to 2021, reaching $28 billion.
• Marginal Share: LDCs' share in global FDI remains below 2%, and their share in developing countries' inflows is less than 4%.
• Sectoral Variations: Asian LDCs saw growth in FDI from extractive industries, while African and island LDCs saw declines.
• COVID-19 Effect: Greenfield investment and project finance both saw sharp declines during the pandemic, with announcements dropping by over 50% in 2020.

By Type and Sector

• Greenfield Investment: Announcements of new greenfield projects increased slowly (3% annually) from $28 billion in 2011 to $35 billion in 2019, but dropped to $8.9 billion in 2021 due to the pandemic.

• Project Finance: International project finance deal values fell during the decade to $58.8 billion in 2021. Declines were sharp in 2020 and exacerbated by the pandemic.

• Sectoral Breakdown:

  • Extractive industries remain a top recipient of FDI, but greenfield investment here has declined marginally.
  • Growth in human capital and ICT investment was limited.
  • Infrastructure investments are critical for the SDGs, with investments in renewable energy, water, and transport seeing real growth, though hampered by the pandemic.

B. Policy Trends

Investment Reform Efforts

• Policy Measures: 2/3 of LDCs adopted at least one investment policy reform between 2011–2020, more than other developing countries (54%).
• Key Areas: Reforms include opening new sectors to FDI, enhancing investment promotion agencies, and revising entry-related regulations.
• Favorability of Measures: 83% of policies adopted by LDCs were more favorable to investment, compared to 80% in other developing countries.

Types of Measures

• Entry Conditions: Restrictions on entry were lifted in 60% of policies implemented by LDCs, eliminating requirements like minimum capital investment.
• Sectoral Focus: Extractive industries dominate LDC-specific policies (39%). In contrast, Asian LDCs promoted manufacturing, and African nations focused on enabling SDG investments.

International Investment Agreements

• IIAs: LDCs concluded 92 new bilateral investment treaties and joined 10 regional agreements during the review period.
• ISDS Cases: At least 48 investor–State dispute settlement (ISDS) cases were filed by LDCs since LDC IV, of which 25% resulted in awards favoring overseas investors.

C. Assessment and Recommendations

Challenges

• Slow FDI Growth: Persistent barriers, institutional fragmentation, and underperformance of reforms since LDC IV have not yielded desired results.
• Post-Pandemic Recovery: The COVID-19 pandemic has worsened economic fragility, limiting LDCs' capacity to attract transformative investments.

####Recommendations

1. Modernize Investment Promotion: Strengthen investment and business facilitation processes and use e-government tools to improve long-term investment climate.

2. Foster Local Productive Capacities: Strengthen entrepreneurship programs, integrate Small & Medium Enterprises (SMEs) into supply chains, promote value-chain linkages.

3. Promote SDG-Aligned Investment: Develop bankable SDG projects and incentivize investments in greenfield projects and project finance aligned with the SDGs.

4. Strengthen Partnerships: Enhance collaboration between governments, development partners, and the private sector to scale up investments in critical sectors (infrastructure, energy, etc.).

“Africa needs at least $38 trillion by 2030 to fund its development goals, but currently, only $25.3 trillion is available. In Nigeria, Mobil receives roughly $10 billion annually for oil projects, while climate resilience projects receive eight times less funding. This imbalance shows how international investment is not being leveraged effectively to build equitable and sustainable economies.”

Key Initiatives

• Strategic Action Plan: Created priorities for LDC governments, development partners, and international investors to modernize policy frameworks and boost financial and technical capacities.
• SDG Impact Indicators: Establish frameworks to measure investment impact in SDG sectors, particularly within SEZs.

This report underscores the need for stronger collaboration, sustained investment reform, and alignment with global frameworks to fully realize LDCs' development potential.