The United Nations Conference on Trade and Development (Unctad) has called for a new approach for FDI and the development of the world’s least developed countries (LDCs).
In its Least Developed Countries Report 2010, Unctad stated that FDI into these 49 countries had been predominantly capital-intensive, particularly in natural resources, and consequently was not creating jobs. It also pointed out that a large amount of FDI from developed countries into LDCs tended to operate as enclaves, which had a limited impact on the domestic economy.
The report stated: “This seriously limits the potential of this form of FDI to stimulate domestic activity, learning and technology upgrading.”
Unctad’s secretary general, Bharat Mohan Adhikali, called for what he described as a "new international development architecture", which focuses on technology transfer and an expanded productive capacity among LCDs.