Unctad seeks controls on $1,700bn multinational cash flows
With the global scramble to attract foreign investment growing more intense, the United Nations Conference on Trade and Development has warned about the dangers of investments from vast transnational corporations and has joined the call for more regulation on capital flows.
Monday 22 September 1997
The report shows that the world's 100 biggest multinational companies, most of which are American- and British-based, own $1,700bn of assets in their foreign affiliates and thus control about a fifth of global foreign assets. This small group of companies also accounts for $2,000bn of global sales and employs close to 6 million.
This awesome power is a source of concern to Unctad which is calling for international action to control anti-competitive practices by these firms, arguing that individual countries lack resources to individually keep a rein on the multinationals.
Mr Ricupero said most countries were moving towards liberalisation of foreign investments. The biggest problem was to get international agreement on ways of putting a cap on wars of incentives to lure multinationals.
The trend for increased direct foreign investment is clearly still on the up. Last year inflows grew to a new record of $349bn in terms which could be directly tracked by Unctad. However, the organisation believes internal transfers within multinational corporations and other investments which do not pass through government investment agencies are likely to be four times greater than this sum, implying a total investment inflow of $1,400bn.
However this does not mean that all these capital flows are producing new capital for industry. Unctad estimates that as much as 47 per cent of direct foreign investment is devoted to merger and acquisition activity. The bulk of investment flows between the US and Europe, the biggest exporters of foreign investment. Developing countries received only 34 per cent of global inflows in 1995-1996.
- 1 Russell Brand accuses FOX News anchor Sean Hannity of terrorism after aggressive Israel-Gaza debate
- 2 Pope Francis issues top 10 tips for happiness – including don’t try to convert other people
- 3 Arturo Vidal to Manchester United: Midfielder set to force through move to Louis van Gaal's Red Devils - reports
- 4 Disney heiress Abigail disowns her share of family profits in West Bank company
- 5 Israel's propaganda machine is finally starting to misfire
Russell Brand accuses FOX News anchor Sean Hannity of terrorism after aggressive Israel-Gaza debate
Pope Francis issues top 10 tips for happiness – including don’t try to convert other people
Sabina Altynbekova, the girl branded 'too good looking' for volleyball, says social media obsession with her is a 'bit much'
Justin Bieber posts Instagram photo of Orlando Bloom crying after Ibiza fight 'over Miranda Kerr'
Disney heiress Abigail disowns her share of family profits in West Bank company
The secret report that helps Israel hide facts
Land for gas: Merkel and Putin discussed secret deal could end Ukraine crisis
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
- < Previous
- Next >
iJobs Money & Business
£20000 - £24000 per annum: Harrington Starr: A leading provider of web based m...
£28000 - £32000 per annum: Ashdown Group: Secretary (Sales Team Support) - Mat...
Competitive (DOE): Guru Careers: We are looking for an Assistant Management Ac...
£600 - £700 per day + competitive: Orgtel: Senior Investment Accounting Change...