A number of developing and transition economies have recently surfaced as important home countries of FDI. Between 1990 and 2005, the number of such economies with outward stocks of FDI of more than US$5 billion increased from 6 to 25.
The bulk of South-South FDI is intraregional. In fact, for a number of least developed countries, FDI from developing home countries makes up a large or preponderant share of their total inward flows. For example, more than 50% of all FDI inflows in Botswana, the Democratic Republic of the Congo, Lesotho, Malawi and Swaziland come from South African investors.
Last year, transnational corporations (TNCs) based in developing or transition economies, but excluding major offshore financial centres, generated FDI outflows of $120 billion - the highest level ever recorded.
"The rise of developing country TNCs is part of a burgeoning shift in the structure of the world economy" says Anne Miroux, Head of the World Investment Report team. "Although the future global map of business and economic power is not easy to predict, companies from Brazil, China, India and South Africa -- indeed from across the entire developing world -- will increasingly be household names. This is an exciting outlook from the development perspective, especially because these TNCs are also significant investors in other developing countries."
"It is important to consider how this form of "South-South" cooperation can be further enhanced to promote development gains", comments U.N. Secretary-General Kofi Annan.
The World Investment Report and its database are available online at www.unctad.org/wir and www.unctad.org/fdistatistics
