October 19, 2021
Introduction
The session was focused on the issues related to Foreign Direct Investment (FDI) data and its usefulness in developing nations. It highlighted that dependence on statistics impacts assessment and policy formation with respect to FDI, specifically focusing on developing countries. Moving forward, the Panellists highlighted the problem faced by the least developing countries in terms of collating the statistics on FDI data, impact of globalisation and digitalisation on various FDI data. Moreover, the session also focused on local and global cooperation in order to intensify the availability and harmonisation of FDI related data and also on the relevancy of the present FDI data for supervising the funding and economic flaws particularly into developing countries.
Session Highlights
The Panellists broadly discussed the issues and challenges that come with the statistics related to FDI such as international allocation of production, international taxation, measuring economic activity, measuring foreign direct investment and assessing its impact. Moving forward the point to improve the current scenario was also discussed were discussion about development of alternative indicators, separate reporting of Special Purpose Entity (SPE) etc. was taken into account. The speakers also focused on the challenges and opportunities of Emerging Market Developing Economies (EMDEs).
Mentioning about the importance of quality FDI and Foreign Affilia Te Statistic (FATS) data Panellist talked about the situation of Zambia and the key challenges faced in terms of FDI data statics compilation and the way forward, where the country has faced a heavy downfall in FDI due to the COVID pandemic. Moving forward the Panellists also spoke about the direct assistance from the Working Group on International Investment Statistics (WGIIS) Secretariat, FDI data addressing development needs and WGIIS as a network. Broadly speaking the Panellists highlighted the point about the new developments in FDI and FATS statistics where they focused on the building of a task team for updating the standard and also about the direct investment task team to decrease the gravity of problems caused by the FDI data compilation shortcomings.
Moving forward the Panellists also spoke about the role of complementary datasets and how the technical assistance and support can play an important role in improving and upgrading the measurement criteria of FDI and several other activities of Multinational Enterprises (MNE). Benchmark Definition for Foreign Direct Investment was essentially highlighted as one of the key indicators for better analysing globalisation as data statistics compilation becomes complex and carries certain threats when it starts working globally particularly in the less developing countries. Mentioning about the linking financing to economic activity, Panellists highlighted that it can be easily understood by linking activities of multinationals enterprises and FATS. Towards the end of the session the speakers mentioned about the strengthening the monitoring of investment in SDGs where they have highlighted that data gap on investment which is one of the major concern and that needs to be sum up by the planned strategies and with the cooperation among the all countries involved in solving the problem of data statistics compilation for a better and harmonised datasets with respect to investment in the important SDG sectors
Opening:
- James Zhan, Director of Investment and Enterprise, UNCTAD
Keynote address:
- Gian Maria Milesi Ferretti, Senior Fellow, The Brookings Institution and former Deputy Director, Research Department, International Monetary Fund (IMF)
Panellists:
Subtheme I: The importance of quality FDI and FATS data
- Wilson Phiri, Senior Economist, Central Bank of Zambia
- Krzysztof Makowski, Chairman, Working Group on International Investment Statistics and Head of Division, Central Bank of Poland
Subtheme II: New developments in FDI and FATS statistics, on-going processes
- Maria Borga, Deputy Head, Balance of Payments, International Monetary Fund (IMF)
- Francesca Spinelli, Head of International Investment Statistics Unit, Organisation for Economic Co-operation and Development (OECD)
- Irene Madsen, Deputy Head of Unit and Team Leader for Annual FDI Statistics, Eurostat
Subtheme III: The role of complementary datasets: greenfield investment and cross-border M&As
- Amanda Budny, Chief of Section, Bureau of Economic Analysis, Department of Commerce, United States
- Christopher Sibley, Head, National Accounts Integration and Large Cases Division, Central Statistics Office, Ireland
- Andrew Jowett, Senior Economist, Office of National Statistics, United Kingdom
Subtheme IV: Improving measurement of FDI and activities of MNEs: the role of technical assistance
- Atilla Karaman, Director, Statistics and Information Department, Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC), Turkey
- Alexander Flühmann, Head of Financial Accounts, Swiss National Bank
Subtheme V: Strengthening the monitoring of investment in SDGs
- Franziska Ohnsorge, Manager, Prospect Group, World Bank
- Ke Xu, Senior Health Financing and Expenditure Analyst, World Health Organization
Moderators:
- Richard Bolwijn, Head, Investment Research Branch, UNCTAD
- Astrit Sulstarova, Chief, Investment Trends and Data Section, UNCTAD