UNIDO and DIE to support G20-T20 deliberations on trade, investment and globalization

UNIDO and DIE to support G20-T20 deliberations on trade, investment and globalization

VIENNA, 26 April 2019 – Interested participants can now register for a roundtable discussion on “Global Value Chains for Inclusive Development: FDI, investment facilitation and linkage creation” to be held on 28 May 2019 in Tokyo, Japan. The roundtable is a T20 Japan-associated event jointly organized by the United Nations Industrial Development Organization (UNIDO) and German Development Institute/Deutsches Institut für Entwicklungspolitik (DIE). It will address ideas and options available to policymakers, which may contribute to evidence-based policy-making at the G20 at the broad level.

Foreign direct investment (FDI) offers a useful entry point for integration into global value chains (GVCs). It also offers a host of technology and financial resources that may bring tangible benefits to domestic firms and industries, thereby increasing their productivity and capability. However, FDI attraction is not without its challenges amid intensifying competition for foreign investment. Even for countries that successfully attracted FDI, positive development outcomes are not pre-ordained.

“Governments and practitioners are in broad agreement about the need for government efforts to facilitate FDI flows and build linkages between foreign and domestic firms. There is however still a difference of opinion about the extent that policy intervention should tackle the issues. We need more conversations among the different stakeholders, including the private sector, to find the appropriate policy solutions,” said Cecilia Ugaz Estrada, Director of UNIDO’s Department of Policy Research and Statistics.

“At DIE we have been working for many years on the potential of global value chains to build linkages between multinationals' foreign investments and domestic firms. We are continuing this strand of research by analyzing the potential of an international framework for investment facilitation, in particular in the context of the World Trade Organization, to promote foreign investments in developing countries. The cooperation with UNIDO provides a good opportunity to connect researchers, practitioners and policy-makers to discuss viable solutions to enhance the contribution of investment facilitation to sustainable development”, said Tilman Altenburg, the Chair of the Programme Transformation of Economic and Social Systems at the DIE.

The first session of the half-day event presents new considerations in FDI attraction that warrant attention for policymakers and practitioners alike. It will highlight best practices in investment facilitation and promotion, present some innovative and possibly replicable programmes from around the world, and outline key implementation issues that may help investment promotion agencies (IPAs) enhance their capability to attract and retain FDI. Also, this session will look at the potential benefits of an international framework on investment facilitation currently under discussion at the WTO.

The second session will focus on the integration of domestic enterprises, most notably small and medium-sized enterprises (SMEs), into the global production networks of multinational firms, which is often difficult due to scale and capability constraints. The session will examine the rationale for SME integration from the perspective of long-term upgrading and the types of policies that are needed to link domestic firms to foreign investment in a beneficial way over time.

Register for the event here.

For more information, please contact:

Adnan Seric

Research and Industrial Development Officer

UNIDO Research and Industrial Policy Advice Division