WIC Topic: The future of FDI: Prospects, challenges and role of IPAs
Rationale for Panel 1
Recover the slide of FDI: Key factors, policy concerns and opportunities.
Estimated global FDI flows were $1.3 trillion in 2018, which is 13% decline compared to the last year. This is the third consecutive drop in FDI flows and lowest since the global financial crisis. FDI slide is mainly concentrated in developed economies that experienced staggering 40% decline in FDI inflows. Key drivers behind these trends are policy and economic factors in addition with the structural changes in the way international business is conducted, i.e. rise of the digital economy and shift towards intangibles.
Implications of negative FDI trends are important concern for policymakers as FDI is an essential element in countries’ efforts to stimulate and enhance economic development. Especially it is significant for the developing world and transition economies due to their need of capital to stimulate industrialization. This panel will discuss main factors behind the slow-down in overseas investments, role of IPAs and attempt to find solutions.
References:
- UNCTAD. (2019). Global Investment Trend Monitor, No:31. Geneva.
- UNCTAD. (2019). World Investment Report. Geneva.
Rationale for Panel 2: FDI in the digitalized world
The digital revolution has left profound impact on the overall global economy. The recent statistics show that half of the world’s population is online, while internet industry has significant contribution to the GDPs of countries. These trends have significant implications on FDI. They shaped the way international business is conducted producing the new investment patterns with different impacts on host countries. Furthermore, digital technologies enabled higher efficiency and provided new development opportunities.
Reaping the benefits of digitalization remain a big challenge for countries all over the world as it requires adjustment of their development policies. This session will gather experts to discuss solutions for overcoming barriers that impede the development of digital economy. It will also address the main impacts of digitalization and technology on the current investment outlook, labor market, and how IPAs can utilize digitalization for determining potential projects and predict which companies are more likely to commit to an investment project.
References:
- Casella, B., & Formenti, L. (2018). FDI in the digital economy: A shift to asset-light international footprints. Transnational corporations, Vol:25, No:1. UNCTAD, Geneva.
- Knight, C. (2018, April). Presentation: Emerging technologies and how IPAs can use them. WAIPA workshop at Annual Investment Meeting (AIM), Dubai.
- UNCTAD. (2017). World Investment Report: Investment and the digital economy. Geneva.
Rationale for Panel 3: New types of investments
New type of investments, such as Venture Capital (VC), Corporate Venture Capital (CVC), Sovereign Wealth Funds (SWF), family offices, and impact investments, are offering new opportunities for countries to boost their development. For example, concepts of financing emerging companies with high growth potential, i.e. startups, known as VC or CVC investments are at record levels despite negative global FDI trends. Global analysis of venture funding by KPMG revels continues six-year straight growth of VC reaching $254 billion in 2018. Additionally, corporate participation in VC deals, i.e. CVC, reached an all-time high, where corporations participated in 20% of all VC deals in 2018.
Furthermore, although SWF are growing less rapidly than before they are still playing important role in global capital markets. Another emerging source of investments are family offices. According to the EY’ sources, there are more than 10,000 single family offices worldwide. Also, more and more investors are focusing on impact investments. These types of investments are following ethical principles and creating positive social impact.
This panel will gather experts to discuss what are the main pros and cons of these new types of investments? How governments can create fertile environment for creation of startups and utilize opportunities that VC investing is offering? How startups can go about capturing the attention of CV and CVC investors? Which key factors are driving SWF and family offices to invest? What is the future of impact investments?
References:
- KPMG. (2019). KPMG Venture Pulse Q4 2018: Global analysis of venture funding.
- Dressler, A. (2019, February). Presentation: FDI drivers. WAIPA “Innovation in Investment Attraction” training, Istanbul.
- East, D. (2018, January). Presentation: Global FDI trends. WAIPA “FDI Essentials” training, Istanbul.
- Elliot, H., & Alexander, P. How do Sovereign Wealth Funds invest?. SSGA, Boston.
- EY. (2016). EY Family Office Guide.
7 October 2019, Monday
INSTITUTIONAL MEETINGS*
- 09:00 – 09:30 Registration
- 09:30 – 12:30 Workshop* (details tbd)
(Location: tbd)
- 09:30 – 12:30 Steering Committee Meeting**
(Location: tbd)
- 12:30 – 14:00 Luncheon
(Location: tbd)
- 14:00 – 17:30 WAIPA General Assembly Meeting***
(Location: tbd)
- Opening Call and Chairmanship
- Audited Financial Statements 2018-2019
- Annual Report of WAIPA Activities 2018-2019
- Elections (Moderator Jean-Louis Collart – WAIPA Legal Advisor)
*/***) Participation in the Workshop and General Assembly is restricted to WAIPA Members
**) Participation in the Steering Committee Meeting is restricted to WAIPA Regional Directors
- 19:30 – 21:00 Gala Dinner
Location: tbd
Dress Code: Business Attire
8 October 2019, Tuesday
CONFERENCE DAY
(Location: tbd)
- 08:00 – 09:00 Registration
- 09:00 – 10:30 Conference Opening
- 10:30 – 11:00 Coffee Break
- 11:00 – 12:30 First Plenary Session
“Rebounding the slide of FDI: Key factors, policy concerns and opportunities.”
- 12:30 – 14:00 Luncheon (location TBD)
- 14:00 – 15:30 Second Plenary Session
“FDI in the digitalized world”
- 15:30 – 15:45 Coffee Break
- 15:45 – 17:15 Third Plenary Session
“New Types of Investments”
- 17:15 – 17:30 Closing Remarks
- Bostjan Skalar, Executive Director, WAIPA
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