70 percent of global foreign direct investments goes to Asia
AA PhotoAsian countries are attracting some 70 percent of all global foreign direct investments (FDI), as investment flow to developed countries is on a fall, according to Mukhisa Kituy, the secretary general of the United Nations Conference on Trade and Development (UNCTAD).
Global FDI figures fell 8 percent last year to $1.26 trillion from a year earlier, Kituy said, while addressing the attendees at the G-20 World Association of Investment Promotion Agencies Conference on Foreign Direct Investments in Istanbul on April 27.
Developing countries made up a $700 billion portion of these foreign investments, he said. However, the investments to these countries fell 14 percent.
Some studies showed international companies were increasing their strategic investments, he added.
Structural reforms are by far the most cost-effective way to attract investment, Turkish Deputy Prime Minister Ali Babacan said at the event.
“There is no more-effective way for a government to act,” Babacan said, praising the role of the private sector.
“It has only to change a few articles in a law, or update a regulation, and the environment for investment can be vastly improved,” he said.
“Turkey decided to make life easier for business and investment and we succeeded,” he added.
The changes introduced in Turkey have been regarded by experts as being critical to the country’s rapid growth in GDP over the past 10 years.
Turkey attracted about $6 billion in FDI in 2014.
“If you are to spend either $1 million or $1 billion, have the private sector spend that, not the public sector. Be sure that you will get better results in terms of productivity, growth and sustainability,” he said.
The deputy PM also highlighted political and economic stability in a bid to create an investor-friendly atmosphere.
Babacan added good governance and transparency also contributed to trust building.
His list also included warranties for property rights, the superiority of law, human capital, infrastructure and openness to investments.
Turkey will help the small and medium-sized enterprises (SMEs) raise their voices during its continuing term of G-20 presidency, he also said.