World Investment Report 2008

Transnational Corporations and the Infrastructure Challenge (Includes CD-ROM)

image of World Investment Report 2008

The World Investment Report 2008 presents the latest data on foreign direct investment (FDI) and traces global and regional trends in FDI and in international production by transnational corporations (TNCs). This year's report puts a special focus on the role of TNCs in meeting the huge needs of developing countries for infrastructure such as roads, ports, water, gas and electricity supply, and telecommunications. Drawing on unique data, this year, the Report examines the universe of the largest TNCs investing in infrastructure industries and the increasing role of TNCs from the South in contributing to infrastructure in other developing economies. The Report explores how the participation of TNCs brings benefits, but also entails risks and costs. It considers how the mix of public and private (including TNC) involvement can help spur foreign investment and knowledge transfer to countries that need such inflows.



Impact of tnc participation on host developing countries

Given the participation of TNCs in the infrastructure industries of a growing number of developing countries, and the significance of infrastructure for sustainable development, the implications of TNC involvement are of considerable importance for host countries. Their involvement raises some crucial questions. How does TNC involvement affect the size of investment and performance of infrastructure industries and the provision of infrastructure services, including to the more vulnerable segments of society? In what ways are performance gains derived from TNC involvement better or worse than those engendered by domestic enterprises, and are there any negative impacts to consider? What are the wider effects of TNC participation in infrastructure on the host economy and society? This chapter examines the impact of TNC participation on, and its implications for, host developing countries.


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