The United Nations presented World Investment Report 2020
On 9 July 2020, KAZAKH INVEST participated in the presentation of the 30th anniversary edition of the World Investment Report prepared by the United Nations Conference on Trade and Development (UNCTAD).
The event, organized by the World Association of Investment Promotion Agencies (WAIPA), brought together the leaders of investment organizations from the dozens of countries.
The main topics of the presentation “International Production Outside a Pandemic” by James Zhan, the UNCTAD Investment and Entrepreneurship Director, focused on the impact of the COVID-19 pandemic on the global economic processes and each region of the world. In particular, the speaker focused on the GDP and investments dynamics, anti-crisis undertaken measures by the Governments as well as the key trends that will determine investment attraction policies in the near future. Expected optimization of the value chains will result in their regionalization with establishment of high value-added goods and services in many cases. He also emphasized that the states need to develop new narratives and formulate new development strategies taking into account the new reality and the UN Sustainable Development Goals.
In his speech, the Executive Director of WAIPA Bostjan Skalar noted that during the current economic crisis along with the recession and increased competition for investment inflows, the role of investment attraction agencies (IPAs) will only increase. In this regard, it is important for the states to consider strengthening their IPAs, including the increasing of the funding. Moreover, the WAIPA is preparing a special declaration on the importance of IPAs in recovering the global economy, which will be then sent to the Governments of the member-countries.
The keynote of the discussion with the international participants was the investment promotion strategies in the context of the economic crisis. During the discussion, Zhandos Temirgali, the Advisor to the CEO of KAZAKH INVEST on strategic investment projects, informed the participants of the event that Kazakhstan faced with large-scale tasks for further diversification of the economy through the development of high-tech processing industries, including through foreign investment attraction. KAZAKH INVEST continues its significant efforts to facilitate investment projects in the new conditions and contribute to the retention of the key investment projects in Kazakhstan, including the measures of industry support, packaged investment proposals, ongoing support at all levels, an individual approach as well as a complete digital transformation.
According to the UNCTAD estimates, global foreign direct investment (FDI) flows in 2020 will be seriously affected by the global economic crisis caused by the ongoing COVID-19 pandemic. Global FDI is expected to drop sharply from the 2019 level of $ 1.5 trillion to less than $ 1 trillion in 2020. Particularly, the inflow of investment in the developing countries dependent on the export of raw materials will decline.
At the same time, the crisis can become a catalyst for the process of structural transformation of international production in the coming decade providing the opportunity to expand sustainability. Close international cooperation will be crucial, and sustainable development will depend on the global political environment conducive to cross-border investment.
The United Nations Conference on Trade and Development (UNCTAD) is the main part of the United Nations Secretariat dealing with trade, investment, and development issues. UNCTAD was established by the United Nations General Assembly in 1964 and it reports to the UN General Assembly and United Nations Economic and Social Council. The organization's main objective is to maximize the trade, investment and development opportunities of developing countries and assist them in their efforts to integrate into the world economy on an equitable basis. The organization conducts research and policy analysis, intergovernmental meetings, provides technical cooperation and interaction with civil society and the business sector. https://unctad.org/
The World Association of Investment Promotion Agencies (WAIPA) is an international Non-governmental organization established in 1995 by the UNCTAD that acts as a forum for investment promotion agencies, provides networking and promotes best practice in investment promotion. The organization unites over 100 members. The headquarters is located in Istanbul (Turkey). https://waipa.org/