Foreign Aid and the State

Give and Take ◽  
2019 ◽  
pp. 213-228
Author(s):  
Nitsan Chorev

This concluding chapter summarizes the book’s main arguments regarding developmental foreign aid in the pharmaceutical field and suggests that similar conclusions apply to other industrial sectors, as well as to other (nonindustrial) sectors of interest to foreign aid, including the provision of services and the distribution of essential commodities. It also identifies a number of contradictions and tensions inherent to developmental foreign aid, including in regard to its effects on the state. First, given that the cases examined in the book confirm the importance of state capacity for foreign aid effectiveness, the chapter takes on the highly contested question of whether foreign aid could contribute to state capacity-building. Second, given the difficulties in increasing state capacity, maybe aid programs could simply bypass the state? The chapter then explains why even developmental foreign aid should not—but also cannot—replace the state. The type of foreign aid that is likely to be effective is not parachuting aid that evades local institutions and actors but, rather, foreign aid that relies on the institutions and actors in place. Finally, the chapter considers the recent wave of foreign direct investment (FDI) in the pharmaceutical sector in East Africa.

Elements ◽  
2007 ◽  
Vol 3 (1) ◽  
Author(s):  
David F. Bradley, Jr.

In 1978, Egypt's Anwar Al-Sadat launched a historic peace initiative with Israel, ultimately culminating in a peace agreement that, nearly 30 years later, still stands. This paper traces Egypt's economic status under Anwar Al-Sadat and concludes that Sadat, rather than just being an innately peace-loving man, had real economic incentives in seeking peace with Israel. Egypt diverted resources from its infrastructure and its people in order to pay for a heavily armed border with Israel. Hostilities toward Israel also cost the country foreign direct investment and foreign aid from the West. Sadat's desire for peace was literally hunger because his citizens were starving.


Author(s):  
Rima H BinSaeed

Kingdom of Saudi Arabia with its developed economy and advanced technological infrastructure has shown a major progress in business opportunities for overseas investors. Saudi Arabia’s education sector is one of the most attractive investment opportunities for the foreign investors Earlier in 2019, 9 new foreign education enterprises were granted investor licenses, amounting to a total of $141mn of investment deals. The Saudi government introduced Saudi Vision 2030, an aspiring development plan that foresees vital prospects for foreign investors in the regions of education, housing, health and energy, amongst others. In 2016, Saudi Arabia permitted the procurement of 100% of assets by foreign investors in retail and wholesale trade. A privatisation program has also been introduced. The government also attempts to attract FDI in the regions of renewable energy and entertainment. A foreign direct investment (FDI) plays a vital role in local and international economy. Several opportunities and ventures are encouraged by Saudi Arabia to improve the standard of business and economical environments. To accomplish the finances for the projects SAGIA, the lawful authority is there to smooth the progress of investments, which encourages Saudi FDI prospective to grow simultaneously. FDI has a greater scope for diverse businesses and investing in to underdeveloped industrial sectors. FDI plays an important role in boosting the economy of Saudi Arabia by managing international investors who shares the huge portion of 34% in General GDP (Gross domestic product) of Saudi Arabia. This paper aims to review the literature to shed light on the steps taken by the government to increase FDI in the country and what are the current trends that are helping to fulfil VISION 2030.


2016 ◽  
Vol 18 ◽  
pp. 22-24 ◽  
Author(s):  
Kamal Raj Dhungel

In Nepal, hydropower is an obvious target for foreign aid and foreign investment. To date, a number of notable hydropower projects were constructed through foreign aid and that history dates back to 1911, when the Britain supported the Pharping hydropower project near Kathmandu. Today, India, China, USA and Norway are investigating the prospects for Nepali hydropower development. This paper traces this history of Foreign Direct Investment (FDI) in Nepal. HYDRO Nepal Journal of Water Energy and EnvironmentVolume- 18, 2016, JanuaryPage -22 to 24


Author(s):  
Nataliia Sytnyk ◽  
Veronika Ishchenko

In modern conditions of functioning of the market economy, in the era of development of globalization and globalization processes, the prevalence of international relations, the spread of various forms of international capital movement, in particular foreign direct investment, an important place is occupied by investment activities and policies implemented by the state within the framework of the latter. It is difficult to overestimate the importance and role of investment, because world experience shows that the effective development of business entities, and therefore the country's economy as a whole, cannot be imagined without making investments. Therefore, the government of almost any country in the world is focused on creating a favorable investment climate. The article defines the theoretical foundations of investment security of the state: the essence of the concept is outlined, the principles on which investment security is based, its place and role in the state's economic security system are justified. Qualitative and quantitative criteria for a comprehensive assessment of the state's investment security are presented. The calculation and analysis of the main indicators – quantitative criteria of investment security: gross accumulation of fixed capital; the degree of accumulation of fixed capital; the ratio of the cost of newly introduced fixed assets to the volume of capital investments is carried out; the ratio of net growth of foreign direct investment to GDP; the size of the Ukrainian economy as a percentage of global GDP. The dynamics of the total volume of foreign direct investment in the Ukrainian economy in the context of world countries is analyzed. The main investor countries that ensure the receipt of the largest volumes of investment flows to the Ukrainian economy are identified. Ukraine's place in the World Bank's “Doing Business” rating over the past ten years has been demonstrated. The positive dynamics regarding Ukraine's place in the World Bank's “Doing Business” rating and the main factors that influenced such positive changes were noted. The investment climate of the state is assessed and possible measures are proposed to improve the mechanism of managing the state's investment security.


Author(s):  
Roudabeh Kishi ◽  
Giuseppe Maggio ◽  
Clionadh Raleigh

AbstractRates of foreign direct investment (FDI) to Africa are increasing, yet little is known about how this will affect the political environment. One possibility, explored here, is that increasing levels of FDI within developing states will incentivize state conflict activity. Using an instrumental strategy, we show that in states with a low regard for civil liberties, or with unhealthy economies (i.e. states with a cash deficit), increased access to investment is associated with a higher number of conflict actions by the state. We argue that access to investment can push regimes into using violent strategies to secure their internal environment and to ensure their survival, specifically in their engaging in conflict against opposition and armed combatants. This underscores the need for extensive monitoring of state behavior following the receipt of investment, similar to the oversight of conditional aid.


2019 ◽  
Vol 9 (2) ◽  
pp. 284-290
Author(s):  
Rahim M. Quazi ◽  
Wayne E. Ballentine ◽  
Farzana Bindu ◽  
Louis Blyden

2015 ◽  
Vol 4 (1) ◽  
pp. 80
Author(s):  
Silsila Asri

Foreign Direct Investment (FDI) is one of the essential capital sources for developingcountries which provide large contribution in economic development trough transfer of asset, good corporate governance and especially technology. This expectation is not always provide positive impact to the recipient countries. FDI, which is often implemented in Multi National Corporation, also becomes a tool for the developed countries to control the economic activities in developing countries in pursuing their benefit and interest. Sometimes, those MNCs also have a signifincance influence in political activities of recipient countries. Beside that, MNCs not always provide large attention to the community development. From this condition, debate about the role of state in managing of FDI emerged in political economic discourses. This paper describes about one of alternative thought how state copes with globalization. FDI is one of phenomena which emerged as the concequnces of globalization.Ian Clark suggested two perceptions about the relation of state and globalization. First, globalization has significance implication in eroding the state capacity as economic actor in international stage. Second, state is the key element in globalization process, in this perception there is a position shift of the state from state retreat to state adaptation. This paper conclude that, state also has capacity to control FDI dan globalization which accompanied it’s flow. State must place itself as business actor which has competitiveness. Keywords: Foreign Direct Investment,Globalization, State retreat, state adaptation 


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