UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT UNCTAD be quoted or summarized in the prin broadcast or electro before p. m. New York: 7 p.m. Geneva, 10.30 p. m Delh: 2 a.m. on 7 June, Tokyo) WORLD INVE REPORT 1B INVESTMENT AND NEW INDUSTRIAL POLICIES KEY MESSAGES AND OVERVIEW
UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT EMBARGO The contents of this Report must not be quoted or summarized in the print, broadcast or electronic media before 6 June 2018, 17:00 GMT. (1 p.m. New York; 7 p.m. Geneva; 10.30 p.m. Delhi; 2 a.m. on 7 June, Tokyo) KEY MESSAGES AND OVERVIEW WORLD INVESTMENT REPORT2018 INVESTMENT AND NEW INDUSTRIAL POLICIES
UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT UNCTAD WORLD INVESTMENT REPORT 2018 INVESTMENT AND NEW INDUSTRIAL POLICIES KEY MESSAGES AND OVERVIEW New York and Genera, 2018
New York and Geneva, 2018 UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT KEY MESSAGES AND OVERVIEW WORLD INVESTMENT REPORT2018 INVESTMENT AND NEW INDUSTRIAL POLICIES
NOTE The UNCTAD Investment and Enterprise Division is the focal point in the United Nations System for investment and enterprise development. As a global centre of excellence, the Division conducts leading-edge research and policy analysis, provides technical assistance to 160 member States and regional groupings, and builds international consensus among the 196 member States of the organization. Its mission is to promote investment and enterprise for sustainable and inclusive development The Division provides, among others. TwO World investment Report World Investment Forum National and intemational Six key policy frameworks Investment promotion Investment Policy Framework for Sustainable Development Responsible investment ss facilitation Action Plan for Investing in the SDGs Entrepreneurship Policy Framework Entrepreneurship development Reform Package for the Intemational Accounting and reporting Investment Regime Global Action Menu for Investment facilitation evelopment Tool Information about these products, frameworks and services, as well as the publications of theDivisionscanbefoundfreeofchargeatUnctaD'swebsite(www.unctad.org/diae)orthe organizationsinvestmentpolicyhub(www.investmentpolicyhub.unctadorg). The copyright of the material in this publication rests with UNCTAD. It may be freely quoted or reprinted, but acknowledgement is requested, together with a reference to UNCTAD and this Report. A copy of the publication containing the quotation or reprint should be sent to the UNCTAD Secretariat(e-mail: diaeinfo@unctad. org) The Overview is prepared based on the in-depth analysis contained in Word Investment Report 2018: Investment and New industrial Policies United Nations publication, Sales No. E 18. L.D. 4) UNCTAD/IR/2018(Overview)I Copyright o United Nations, 2018. All nights reserved. Printed at United Nations, Geneva. World Inestment Report 2018 vestment and NEw Industnal Policies
NOTE Copyright © United Nations, 2018. All rights reserved. Printed at United Nations, Geneva. The UNCTAD Investment and Enterprise Division is the focal point in the United Nations System for investment and enterprise development. As a global centre of excellence, the Division conducts leading-edge research and policy analysis, provides technical assistance to 160 member States and regional groupings, and builds international consensus among the 196 member States of the organization. Its mission is to promote investment and enterprise for sustainable and inclusive development. The Division provides, among others, Information about these products, frameworks and services, as well as the publications of the Division, can be found free of charge at UNCTAD’s website (www.unctad.org/diae) or the organization’s investment policy hub (www. investmentpolicyhub.unctad.org). The copyright of the material in this publication rests with UNCTAD. It may be freely quoted or reprinted, but acknowledgement is requested, together with a reference to UNCTAD and this Report. A copy of the publication containing the quotation or reprint should be sent to the UNCTAD Secretariat (e-mail: diaeinfo@unctad.org). UNCTAD/WIR/2018 (Overview) The Overview is prepared based on the in-depth analysis contained in World Investment Report 2018: Investment and New Industrial Policies (United Nations publication, Sales No. E.18.II.D.4). Two flagship products: World Investment Report World Investment Forum Six key policy frameworks: Investment Policy Framework for Sustainable Development Action Plan for Investing in the SDGs Entrepreneurship Policy Framework Reform Package for the International Investment Regime Global Action Menu for Investment Facilitation Accounting Development Tool Seven core services: Investment databases and research National and international investment policies Investment promotion Responsible investment Business facilitation Entrepreneurship development Accounting and reporting ii World Investment Report 2018 Investment and New Industrial Policies
PREFACE Global flows of foreign direct investment fell by 23 per cent in 2017. Cross-border investment in developed and transition economies dropped sharply, while growth was near zero in developing economies modest recovery predicted for 2018, trend is a long-term concern for policymakers worldwide, especially for developing countries, where international investment is indispensable for sustainable industrial development This troubling global investment picture underscores the im of a conducive global investment environment, characterized by open, transparent and non-discriminatory investment policies. The theme chapter of the report shows that over 100 countries have adopted industrial development strategies in recent years. New types of industrial licies have emerged, responding to the opportunities and challenges associated with a new industrial revolution. The report presents options for investment policy tools in this new environment I commend this year's Word Investment Report as a timely contribution to an important debate in the international investment and development Antonio Guteres Secretary-General of the United Nations Preface
António Guterres Secretary-General of the United Nations Global flows of foreign direct investment fell by 23 per cent in 2017. Cross-border investment in developed and transition economies dropped sharply, while growth was near zero in developing economies. With only a very modest recovery predicted for 2018, this negative trend is a long-term concern for policymakers worldwide, especially for developing countries, where international investment is indispensable for sustainable industrial development. This troubling global investment picture underscores the importance of a conducive global investment environment, characterized by open, transparent and non-discriminatory investment policies. The theme chapter of the report shows that over 100 countries have adopted industrial development strategies in recent years. New types of industrial policies have emerged, responding to the opportunities and challenges associated with a new industrial revolution. The report presents options for investment policy tools in this new environment. I commend this year’s World Investment Report as a timely contribution to an important debate in the international investment and development community. PREFACE Preface iii
FOREWORD ve are at the dawn of a fourth industrial revolution, propelled by frontier technologie and robotization advances that make production better, cheaper and faster than ever before. This new industrial revolution offers enormous opportunities for economic growth and sustainable development with potential benefits on a scale that is difficult to imagine. New technologies promise possibilities of industrial upgrading and leapfrogging Cheaper transportation and communication, coupled with more efficient logistics, can also help developing countries better link to global value chains. Some of the most advanced emerging economies are already on the verge of becoming global technological leaders in a number of industries Yet, the new economic age and the accelerating pace of technological innot could also result in serious economic disruption and more inequality. Exi investment patterns, for instance, might go through profound and far-reaching changes, in terms of both flows and content. Last year's World Investment Report highlighted the emerging structural impact of the digital economy on foreign direct In this context, developing countries, and least developed countries in particular, face considerable challenges. They range from structural constraints, such as the of adequate infrastructure and scarce Offshoring and relocation towards destinations offering cheaper domestic labour become less relevant in a world of increasingly automated manufacturing. At the ame time, improving living conditions requires creating jobs, which in turn still relies heavily on manufacturing. Developing countries with small markets face additional pressure on their investment policies as companies increasingly look for investment locations offering the best conditions to deliver new and high-quality products rapidly, close to the customer and through flexible production processes Challenges are particularly pronounced in Africa. Despite a period of strong economic growth, the level of economic transformation has been low. The share of manufacturing in the gDP of African countries is small, and it has further declined or stagnated over the past decade. However, manufacturing has the potential of creating a large number of jobs in the formal sector and therefore raising living conditions World Inestment Report 2018 vestment and NEw Industnal Policies
We are at the dawn of a fourth industrial revolution, propelled by frontier technologies and robotization advances that make production better, cheaper and faster than ever before. This new industrial revolution offers enormous opportunities for economic growth and sustainable development with potential benefits on a scale that is difficult to imagine. New technologies promise possibilities of industrial upgrading and leapfrogging. Cheaper transportation and communication, coupled with more efficient logistics, can also help developing countries better link to global value chains. Some of the most advanced emerging economies are already on the verge of becoming global technological leaders in a number of industries. Yet, the new economic age and the accelerating pace of technological innovation could also result in serious economic disruption and more inequality. Existing investment patterns, for instance, might go through profound and far-reaching changes, in terms of both flows and content. Last year’s World Investment Report highlighted the emerging structural impact of the digital economy on foreign direct investment. In this context, developing countries, and least developed countries in particular, face considerable challenges. They range from structural constraints, such as the lack of adequate infrastructure and scarce access to finance, to strategic issues. Offshoring and relocation towards destinations offering cheaper domestic labour become less relevant in a world of increasingly automated manufacturing. At the same time, improving living conditions requires creating jobs, which in turn still relies heavily on manufacturing. Developing countries with small markets face additional pressure on their investment policies as companies increasingly look for investment locations offering the best conditions to deliver new and high-quality products rapidly, close to the customer and through flexible production processes. Challenges are particularly pronounced in Africa. Despite a period of strong economic growth, the level of economic transformation has been low. The share of manufacturing in the GDP of African countries is small, and it has further declined or stagnated over the past decade. However, manufacturing has the potential of creating a large number of jobs in the formal sector and therefore raising living conditions. FOREWORD iv World Investment Report 2018 Investment and New Industrial Policies