أفغانستان

This paper examines the development implications of Chinese investment in the Sudan to enable a better understanding of the impact of foreign direct investment (FDI) from developing countries. By examining China’s early investment in the Sudan by the Chinese National Oil Corporation (CNPC) and the consequent cascade effect on the Sudan’s significant economic growth during the decade between 1997 and 2007 this paper highlights how progress was achieved through interaction between Chinese FDI and host institutions. It demonstrates that developing country FDI can make positive contributions to development particularly in developing countries due not only to its capacity appropriate for developing countries but also to its strategies and mindset more adaptable to the development needs and institutional environment in the host country. While extant research often emphasizes how institutions make FDI’s impact on host countries differ and how institutions in developing countries should be improved in order to attract FDI this research indicates that proactive adaptation of strategy by transnational corporations (TNCs) to fit local needs and institutions may be more effective for improving institutions and consequently the development in host countries.

Since late last year the greater Darfur region of western Sudan has been plunged into one of the worst emergencies in the world today. Many thousands of villagers have been killed as the Sudanese armed forces and a governmentbacked militia seek to crush local insurgents. Some 2 million people many of them driven from their homes by the conflict need “acute assistance” according to UN estimates. Another 130000 have fled across the border into neighbouring Chad.

With Sudan moving towards a referendum to determine whether the south remains part of the country or secedes the United Nations and the rest of the international community have launched a major diplomatic push to keep the troubled process on track. The referendum together with a separate poll on the status of the disputed oil centre of Abyei is scheduled for 9 January 2011.