Understanding FDI  FDI Major Role (?) In Global Business  Arguments For & Against FDI  FDI for Quick Pay Backs (Outflows)  FDI, CSR & Fanfare for People  FDI, BRIC and Argentina  FDI & Transfer Pricing Slide-1

FDI Types  Outward  Inward  Classified on Routing Basis  Vertical FDI Slide-2

FDI in Past & Near Future  Global FDI in USD bln 2010 (Forecast)1.2 Trillion 2011 (Forecast) Trillion 2012 (Forecast)1.6 – 2. Trillion  FDI by M & A  Investments in High Tech Sectors- Complicated Slide-3

FDI for Going Global Investment Decisions from Assessment of Internal Resources Competitiveness Market Analysis & Expectation Incentives for FDI Infrastructures etc Local Regulations Payback Time Profitability and Repatriation Slide-4

Studies on FDI  FDI Role- Not Substantiated  FDI, Account for mere 2% of Global GDP  Profit Repatriation by MNC exceed FDI Inflow  FDI in Form of High Tech as Equity  FDI for Transfer of Skill & Expertise  FDI is Partly Pro-cyclical  FDI & Portfolio Inv. Equally Unreliable Slide-5

FDI & Employment  M & A of FDI hardly promote Employment  FDI in Machineries & Intellectual Property  FDI causes 60 – 70% Job Losses  FDI has Limitations, yet welcome  FDI for kleptocracies in governance misrouted to Swiss & Cypriot Bank A\C  Causes Asset Bubbles from black money Slide-6

World Investment Report Global Inflow in Billion USD YearDevelopedDevelopingOthersTotal Global Outflow in Billion USD YearDevelopedDevelopingOthersTotal Slide-7

3. A LOOK AT TOP 20 FDI Recipients Slide-8

4. UNCTAD FDI FORECAST 5. Global Economy Contracted 2% in 2009 to grow by 3% in Net Growth ? YearUSD Trillion Trillion Trillion Slide-9

FDI in Bangladesh  FCY Promotion & Protection Act 1980 For FDI  FDI is welcome YearMillion USD  Special Zones for FDI  Refer to Table-2 (Page-6) Slide-10

FACTS ABOUT BANGLADESH FDI  81% of Total Investment for Private Sector  FY Private Inv. Tk.120,200 Cr.FY Tk.136,285 Cr.  14.6% of GDP in FY and 19.74% of GDP in FY (Prov)  Table 4 shows - Doing Business & Bangladesh Slide-11

 Private Inv. Proposal in Tk 12,637 Cr. and FDI Tk. 4,262 Cr. Upto Feb 2010(BOI).  Bangladesh Performed Better during Financial Crisis- FDI attracted from EU, ASEAN & FarEast  Bangladesh BB Forum for Facilitating  Recent FDI & Investment Trends Table-1 Vs Table-3 Slide-12

Recurrent Bangladesh & Draft SFYP  GDP to grow by 6%+  Past 3 years GDP grew 5.9% Average  Poverty in 1991/92 to 40% in 2005  5% Top have times Income over 5% Bottom Slide-13

 PPP- 2% GDP in 2011 to 6% in 2015  GDP to grow 8% in 2015  Private Inv. 32% of GDP in 2015 from 19%  Average yearly 29.6% Inv. in 2015  Power Generation of 9426 mw Added From US$ 9.5 Bln. Investment by 2015 Slide-14

 Profitability Attracts FDI  FDI Constitute some 2% of Global GDP  Can FDI alone Finance Development ?  Bangladesh FDI FDI (FY 2010) USD 900 mln Private Investment Tk 136,285 Cr. GDP- USD 100 bln  Oversight on FDI Needed  Globalisation For Bangladesh  Not Bangladesh for Globalisation CONCLUSION Slide-15