Suchergebnisse

The Philippine Government's efforts to attract foreign direct investments have been ineffectual, especially when compared with the efforts of its Southeast Asian neighbors. Foreign investment incentive legislation has been relatively ineffectual in attracting the investment the Philippines sought due to the ambiguous and arbitrary execution of its investment laws and policies. The Philippine Judiciary's unsettled attitude toward foreign investment further enhanced the overall impression that the Philippines was not a safe or stable investment host country. The Philippines' most recent legislative attempt to lure foreign investment is the Foreign Investments Act of 1991. The Foreign Investments Act goes much further than its predecessors in liberalizing access to the Philippine economy by promoting more transparent and efficient investment laws and regulations. However, the Foreign Investments Act is potentially marginalized by the Local Governments Code, which diffuses much of the central government's powers to lure and to control foreign investment to local government units, most of whom have diverse development and investment priorities. Thus, the Foreign Investments Act alone is not likely to attract and keep the desired investment. To lure foreign investment, the Philippines should provide some form of efficient investor services that will account for the central and local governments' priorities, differences and needs. This would promote productive and equitable foreign investment by building on the strengths of the Foreign Investments Act while preserving the integrity of local decisions mandated by the Local Governments Code.

Much concern regarding recent negative net foreign investment of the United States is misguided. It has frequently reflected misunderstanding of the nature of foreign investment and of misleading official measures. The extent of negative net foreign investment and, all the more so, its sum over the years, which is the presumed debt of the United States to the rest of the world, have been exaggerated. Correctly measured, which means taking into account changes in the value of the U.S. assets abroad that are usually ignored, they are not and do not threaten to be large relative to total income and wealth. Net foreign investment in the long run reflects relative growth and portfolio choices among nations. If the monetary authority does not prevent the fall of interest rates and exchange rates, rates of foreign investment can be expected, within a reasonable time, to be self-adjusting. They will then reflect underlying preferences and economic forces, interference with which is likely to do more harm than good.

This report relies on a comprehensive set of data on capital flows, represented by purchase and sales of U.S government securities and U.S and foeign corporate stocks, bonds, into and out of the United States, that is reported by the Treasury Department on a monthly basis.

I. Foreign Investment System 1. Policy direction 2. Business sectors eligible for foreign investment 3. Notification and approval procedures 4. Inducement of foreign investment capital 5. Establishment of a foreign invested company 6. Cancellation and revocation of foreign investment registration 7. Technology inducement II. Support Policy for Foreign Invested Companies 1. Tax support 2. Financialsupport 3. Support related to plant sites 4. Support related to labor relations 5. Support to foreign invested small and medium sized companies 6. Administrative support [Appendix] 1. Restricted Business with Criteria for Approval 2. Restricted Business with No Criteria for Approval 3. Authorized Institutions for Notification Acceptance 4. Government Authorities for Foreign Investment Approval 5. Business Accompanied by Advanced Technology Eligible for Tax Exemption or Reduction 6. The Name of Relevant Ministry

The multi-national corporations see in the developing countries of black Africa a potentially large market where they would like to have a foothold. The host governments, while welcoming foreign investment, are concerned about outside exploitation. The tension between this quest for markets and the move for greater control by Africans is but one more version of the old love-hate relationship between foreign investors and underdeveloped countries.