Pakistan stands nowhere in the huge shares of FDI inflows into the emerging economies of Asia!
While dark clouds hang over foreign direct investment in the country, the sun shines brightly over neighbouring countries. According to the data provided by UNCTAD, India accounts for about a tenth of total FDI inflows into BRICS countries.
The latest global investment trends monitor themes around the rise of FDI in BRICS. Essentially, the BRICS—Brazil, Russia, India, China and South Africa—have contributed massively to the absorption of more than half of the global FDI inflows.
Numbers suggest that the growth in FDI inflows has been gargantuan; inward FDI has trebled over the last decade to $263 billion in 2012, and the market share of the group of five has hopped from six percent in 2006 to 20 percent in 2012 globally.
While the jump in FDI inflows into BRICS has been pronounced after 2003, the rise in the outflows from this regional bloc started a little later in 2005. Nonetheless, both the international and BRICS investor has been unbolt and relatively resilient during the 2008 and 2012 crises.
Another eye-opener from the Global Investment Trends Monitor is the investment pattern of this giant bloc. BRIC countries are increasingly investing in Africa’s manufacturing and service sector, clearly defying the trend of investment in primary goods elsewhere in the world. This can be seen from the leap in outward FDI global market share from one percent a decade ago to nine percent in 2012.
The report also highlights that foreign investment from BRICS into Africa in 2012 represented 25 percent of Africa’s total inflows. Also, in 2011, among the top 20 investors in Africa, China and India were ranked fourth and fifth, respectively, in terms of FDI inflows.
The public release by the foreign control watchdog leaves some questions unanswered; maybe, deliberately for the policy makers to ponder on. The intra region FDI—within BRIC countries—remains restricted.
Moreover, prospects for a sustainable development and capacity building in Africa through BRICS investment have been left open to be deciphered.






















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