Download FDI in Past Near Future

Slide-1
Understanding FDI
FDI Major Role (?) In Global Business
Arguments For & Against FDI
FDI for Quick Pay Backs (Outflows)
FDI, CSR & Fanfare for People
FDI, BRIC and Argentina
FDI & Transfer Pricing
Slide-2
FDI Types
Outward
Inward
Classified on Routing Basis
Vertical FDI
Slide-3
FDI in Past & Near Future
 Global FDI in USD
1999
636 bln
2010 (Forecast)
1.2 Trillion
2011 (Forecast)
1.3-1.5 Trillion
2012 (Forecast)
1.6 – 2. Trillion
 FDI by M & A
 Investments in High Tech Sectors- Complicated
Slide-4
FDI for Going Global
• Investment Decisions from
Assessment of Internal Resources
Competitiveness
Market Analysis & Expectation
Incentives for FDI
Infrastructures etc
Local Regulations
Payback Time
Profitability and Repatriation
Slide-5
Studies on FDI
FDI Role- Not Substantiated
FDI, Account for mere 2% of Global GDP
Profit Repatriation by MNC exceed FDI
Inflow
FDI in Form of High Tech as Equity
FDI for Transfer of Skill & Expertise
FDI is Partly Pro-cyclical
FDI & Portfolio Inv. Equally Unreliable
Slide-6
FDI & Employment
M & A of FDI hardly promote Employment
FDI in Machineries & Intellectual Property
FDI causes 60 – 70% Job Losses
FDI has Limitations, yet welcome
FDI for kleptocracies in governance
misrouted to Swiss & Cypriot Bank A\C
Causes Asset Bubbles from black money
Slide-7
World Investment Report 2010
1. Global Inflow in Billion USD
Year
Developed
Developing
Others
Total
2007
1444
565
91
2100
2008
1018
630
123
1771
2009
566
478
70
1114
2. Global Outflow in Billion USD
Year
Developed
Developing
Others
Total
2007
1924
292
52
2268
2008
1572
296
61
1929
2009
821
229
51
1101
Slide-8
3. A LOOK AT TOP 20 FDI Recipients
Slide-9
4. UNCTAD FDI FORECAST
Year
2010
2011
2012
USD
1.2
1.3
1.6
Trillion
Trillion
Trillion
5. Global Economy Contracted 2% in 2009 to grow
by 3% in 2010. Net Growth ?
Slide-10
FDI in Bangladesh
FCY Promotion & Protection
Act 1980 For FDI
FDI is welcome
Year
Million USD
2009
900
2008
793
2007
793
2006
989
2005
845.30
Special Zones for FDI
Refer to Table-2 (Page-6)
Slide-11
FACTS ABOUT BANGLADESH FDI
 81%
of Total Investment for Private
Sector
 FY 2008-2009- Private Inv. Tk.120,200
Cr.FY 2009-2010 Tk.136,285 Cr.
14.6% of GDP in FY 2008-2009 and
19.74% of GDP in FY 2009-2010(Prov)
Table 4 shows - Doing Business &
Bangladesh
Slide-12
Private Inv. Proposal in 2009-2010 Tk
12,637 Cr. and FDI Tk. 4,262 Cr. Upto
Feb 2010(BOI).
Bangladesh Performed Better during
Financial Crisis- FDI attracted from EU,
ASEAN & FarEast
Bangladesh BB Forum for Facilitating
Recent FDI & Investment Trends
Table-1 Vs Table-3
Slide-13
Recurrent Bangladesh & Draft SFYP
GDP to grow by 6%+
Past 3 years GDP grew 5.9% Average
Poverty 56.67 in 1991/92 to 40% in 2005
5% Top have 20.85 times Income over 5%
Bottom
Slide-14
PPP- 2% GDP in 2011 to 6% in 2015
GDP to grow 8% in 2015
Private Inv. 32% of GDP in 2015
from 19%
Average yearly 29.6% Inv. in 2015
Power Generation of 9426 mw Added
From US$ 9.5 Bln. Investment by 2015
Slide-15
CONCLUSION
Profitability Attracts FDI
FDI Constitute some 2% of Global GDP
Can FDI alone Finance Development ?
Bangladesh FDI
FDI (FY 2010) USD 900 mln
Private Investment Tk 136,285 Cr.
GDP- USD 100 bln
Oversight on FDI Needed
Globalisation For Bangladesh
Not Bangladesh for Globalisation