General investment

World investment prospects to 2011
Foreign direct investment and the challenge of political risk
Written with the Columbia Program on International Investment

WORLD INVESTMENT PROSPECTS

World investment prospects to 2011
Foreign direct investment and the challenge of political risk

© The Economist Intelligence Unit

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The Economist Intelligence Unit
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Columbia Program on International Investment The Columbia Program on International Investment (CPII), headed by Dr. Karl P. Sauvant, is a joint undertaking of the Columbia Law School, under Dean David M. Schizer, and The Earth Institute at Columbia University, directed by Professor Jeffrey D. Sachs. It seeks to be a leader on issuesrelated to foreign direct investment (FDI) in the global economy. The CPII focuses on the analysis and teaching of the implications of FDI for public policy and international investment law. Its objectives are to analyze important topical policy-oriented issues related to FDI, develop and disseminate practical approaches and solutions, and provide students with a challenging learning environment.Columbia Program on International Investment Columbia Law School - Earth Institute Columbia University 435 West 116th Street, Rm. JGH 639 New York, NY 10027 Tel: +1 (212) 854-0689 Fax: +1 (212) 854-7946 CPII@law.columbia.edu http://www.cpii.columbia.edu

Copyright (c) 2007 The Economist Intelligence Unit Limited. All rights reserved. Neither this publication nor any part of it may be reproduced,stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of The Economist Intelligence Unit Limited. All information in this report is verified to the best of the author’s and the publisher’s ability. However, the Economist Intelligence Unit and the Columbia Program on International Investmentdo not accept responsibility for any loss arising from reliance on it. ISBN 0 86218 205 0 Symbols for tables “n/a” means not available; “-” means not applicable

WORLD INVESTMENT PROSPECTS

Contents
4 5 6 17 18 67 80 84 107 108 110 112 114 116 118 120 122 124 126 List of tables The authors Executive summary PART 1: World investment prospects to 2011 Global foreign direct investment to 2011Laza Kekic Regulatory risk and the growth of FDI Karl P Sauvant Addressing political risk in the energy sector Jeffrey D Sachs The investors’ view: economic opportunities versus political risks in 2007-11 Matthew Shinkman PART 2: Country profiles Developed countries United States of America Canada Belgium France Germany Italy Netherlands Spain Sweden United Kingdom 128 130 132 134 136 138 140...