According to the 2007 World Investment Report, global FDI inflows rose in 2006 for the third consecutive year. This growth was shared by countries in various states of development.

Rising demand for commodities was reflected in a steep increase in natural resource-related FDI, although the services sector continued to be the dominant FDI recipient.

Advertisement

FDI inflows to developing sub-regions such as north Africa, sub-Saharan Africa, west Asia, south Asia, east Asia, and south-east Asia were at record levels, as were foreign investment flows to transition economies.

FDI inflows to east, south, and south-east Asia reached $200bn in 2006; inflows to west Asia climbed to unprecedented levels; and FDI inflows to Africa doubled over two years, led by investments in natural resources.

FDI inflows to south-east Europe and Commonwealth of Independent States increased for the sixth consecutive year. And while inflows to Latin America and the Caribbean increased moderately — outflows soared.

Foreign activities of the largest companies from developing countries have grown noticeably, Unctad noted.

The report calls special attention to the heavy involvement by transnational corporations (TNCs) in the extractive industries of developing countries and argues that the commodities boom should provide opportunities for development and poverty alleviation in mineral-exporting countries.