COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

Developing countries agree to articulate investment concerns

The developing countries, including India, have initiated efforts to take coherent measures in future discussions in the multilateral fora on investment issues with a view to reflecting their specific needs and concerns in a cohesive manner.

The regional symposium, hosted by India and jointly organised by the Ministry of Commerce and United Nations Councul for Trade and Development, on international investment arrangements and their implications for developing countries concluded in New Delhi on Friday.

Participants agreed that developing countries should draw lessons from various multilateral discussions and negotiations. They expressed a generally felt desire that international discussions on investment should take into account countries' abilities to pursue national oriented policies and implement domestic, economic and social goals.

The initiative taken by the Government of India and UNCTAD in organising the symposium was welcomed by the participants who emphasised the importance for developing countries, particularly from the Asian region, of the topics and issues examined during the sy mposium.

Participants pointed out the educational value of such discussions, which had enabled them to understand the issues and their specific implications.

They also expressed the view that developing countries should exercise discretion to selectively permit foreign direct investment in priority areas in line with their national development objectives. Participants also noted that various legal and policy options pertaining to FDI were available and practised in different countries.

The options ranged from complete state discretion to regulate entry and establishment of FDI to offering full rights of entry and establishment subject only to a negative list of reserved sectors or industries.

Participants were of the opinion that there was no need for an international investment regime that was legally binding. However, many participants felt that due to the variety and differences in bilateral agreements, it may not be possible to convert them into a global regime. The need for obligations on the multinational corporations to transfer technology along with FDI was emphasised.

The participants were also of the view that UNCTAD should continue its work in the area of international investment. Developing countries could acquire adequate knowledge of the issues involved and be prepared to deal with the matter as and when it arose in the international fora.

The meeting was attended by delegates from 16 developing countries.

UNI