A note on FDI
dmschanoes at earthlink.net
Mon Sep 1 12:27:56 MDT 2003
What I said offlist to JB was that US FDI positions AND EQUITY OWNERSHIP
POSITONS (stock shares) in foreign companies exceed US bank claims, non-bank
claims, and US bond holdings. The income from the former ownership
categories exceeds the income from the latter debt holding categories.
I have not taken a position on whether the US owns the rest of the world,
but it certainly is the bellweather capitalist economy for the international
network of capital.
FDI is almost by definition non-governmental direct investment in another
country. Few governmental ventures qualify as foreign direct investment as
opposed to a foreign based asset (for example, military installations
qualify as the latter but not the former).
Part of the significance of FDI is its rapid growth at the expense of
governmental loans and grants and aid from the developed countries.
The UNCTAD report, and indeed every report on FDI has different categories--
there is the historical gross at cost, the historical gross at market value,
the yearly gross flows, and the comparison of year to year flows.
The historical gross of FDI did not decline by half in 2001. The amounts,
the flow declined. The market value of the gross may have declined in 2001,
2002, etc. But it has not declined on a historical cost basis.
JB needs to pay a bit more attention the exactly what trees are in what
forests before pretending to be a ranger.
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