Low­est FDI

Southasia - - -

The re­cent UN World In­vest­ment Re­port has put Bhutan at the 134th po­si­tion amongst the list of coun­tries that at­tracted least for­eign in­vest­ment in 2010. Bhutan’s for­eign di­rect in­vest­ment flow was only USD 100M (Nu 4.3B) in 2010 ac­cord­ing to the re­port.

De­spite re­vis­ing the for­eign di­rect in­vest­ment pol­icy with ex­ten­sive in­vest­ment lib­er­al­iza­tion mea­sures, Bhutan is not able to at­tract for­eign in­vest­ment, the re­port as­serted.

The re­port which stud­ies global FDI in­flows has clubbed Bhutan with Nepal, Afghanistan and the Demo­cratic Peo­ple’s Repub­lic of Korea.

A sur­vey car­ried out by the World Bank ear­lier this year ti­tled ‘The In­vest­ment Cli­mate As­sess­ment’ also rated Bhutan as not very ‘in­vest­ment friendly’ and that its ac­cess to fi­nance was one ma­jor con­straint.

The World Bank sur­vey pointed out lack of in­fra­struc­ture as a ma­jor rea­son for poor per­for­mance in the in­vest­ment sec­tor de­spite do­ing well in terms of po­lit­i­cal sta­bil­ity.

The UN World In­vest­ment Re­port called for pru­dent mea­sures to at­tract in­vest­ment like cap­i­tal­iz­ing on ex­ter­nal eco­nomic con­di­tions, eco­nomic re­forms, in­fra­struc­ture and pri­vate sec­tor de­vel­op­ment.

A ma­jor con­straint for Bhutan, which is cat­e­go­rized as a land­locked coun­try is its small mar­ket, poor in­fra­struc­ture and trans­port bot­tle­necks, the re­port noted.

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