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WORLD INVESTMENT REPORT – 2020

The World Investment Report mainly depends on the Foreign Direct Investments (FDI) across the globe at the geographical and country level for improving the rate of contributions for developments.

The World Investment Report basically gives an analytical overview of the current trends at the worldwide level along with the regional level in the Foreign Direct Investments (FDI) along with Transnational Corporations (TNCs). It also highlights the specific issues which are based directly or indirectly on FDI in different parts across the world. This gives a reflection of the implications of the financial crisis that recently happened in the Asiatic region which includes different countries and economies as well. The World Investment Report also provides an overview of the determinants of FDI that are based on different locations. This is done in order to host the countries along with verifying the natures of the evolution of these determinants, which are in the form of TNCs. This helps in the adjustment according to the change of economic conditions at the global level along with maintaining the balance with the competitive pressure that tends to increase.

World Investment Report

The World Investment Report also provides an overview of the determinants of FDI that are based on different locations. This is done in order to host the countries along with verifying the natures of the evolution of these determinants, which are in the form of TNCs. This helps in the adjustment according to the change of economic conditions at the global level along with maintaining the balance with the competitive pressure that tends to increase.

This report of investment supports the makers of the policies through reflecting the trending investments that are done at the global and regional level along with monitoring the developments of the national and international policy.

These reports are based on the investments that are done in order to achieve the Sustainable Development Goals (SDGs) along with providing a brief index about the investments that influenced public health along with the recovery of the economies after the pandemic situation.

World Investment Report by UNCTAD

The methodological expansion of trade in terms of globalization has helped many economies to be lifted out of poverty. However, very few people have enjoyed this opportunity along with the highlighting of different severe challenges.  

The United Nations Conference of Trade and Development or the UNCTAD is an organization that provides support to the developing countries for accessing the benefits of an economy that follows the global level more efficiently. This was established in the year 1964 as a permanent intergovernmental body with its headquarters in Geneva, Switzerland. These also support the economies to deal with the drawbacks that are potentially effective for the larger integration of economies. UNCTAD supports the economies by providing the required analysis, facilitating the building of the consensus along offering technical assistance.

There are several other aspects that the UNCTAD looks for in supporting the economies at the national, regional and global level also.

  • Understanding the factors that impact the macro-level developments
  • Supporting through the beneficial integration of the global trade
  • Economic diversification in order to maintain the balance of dependency on the commodities
  • Backing up through providing financial stability along with repaying the debts.
  • Attracting the investors with a vision of the sustainable development
  • Local firms enjoy support in order to rise up their value chains
  • Acceleration of the imports and exports business 
  • Consumers get protections from getting abused
  • Regulating the cubs in order to fight back in terms of competition
  • Adaptation to changes of climate along with the effective usage of natural resources 

As directed in the Agenda 2030, UNCTAD works with the departments of the UN in order to measure the progress of achieving the Sustainable Development Goals.

The major stakeholders of UNCTAD are considered to be The World Bank, International Monetary Fund, and World Trade Organization along the United Nations Development Programme. 

What is in the World Investment Report 2020?

As per the World Investment Report of 2020 published by UNCTAD, the following scenarios are reflected 

  • The flow of the Global FDI has decreased by 40% as compared to the 2019 value of 1.5 trillion dollars.
  • Since 2005, this would be the first time for the FDI to flow under the range of 1 trillion dollars. Moreover, it is suspected to decline by another 5-10 percent in 2021.
  • Developing economies will be impacted densely through the extreme downfall of the FDI as these economies depend on the Global Value Chain (VGC)
  • The flows of the investment will take time till 2022 in order to recover to the good mode.

FDI rank of INDIA 2020

The rank of INDIA in terms of FDI has been increased from 12th position in the year 2018 to 9th position in 2019 among the other global recipients of FDI. In this year, India has jumped over 20% to 1 billion dollars with the rise in the inflow of  FDI. 

Conclusion

In this research paper, the researcher has highlighted the aspects of the World Investment Report of 2020. The researcher has also mentioned the analyses that are present in the report along with the details of the publishing body, UNCTAD. Moreover, the researcher has also mentioned the factors that are monitored and implicated by UNCTAD in order to maintain the inflow of FDI. This article also includes the report about the jump that India has taken in the year 2019 in terms of the inflow of the FDI.

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Frequently Asked Questions

Get answers to the most common queries related to the Karnataka PSC Examination Preparation.

Which country has received the highest FDI in 2020?

Ans : China was at the top of the list of inflows of FDI in 2020.

Who releases the Investment report?

Ans : The World Investment Report- 2020 was published by UNCTAD, a permanent intergovernmental orga...Read full