The Potential for Restraint through an International Charter for FDI
I have been asked to discuss a Charter for Foreign Direct Investment (FDI) in Africa as means of reducing the perceived risk of investing in Africa. I am ambivalent about the ultimate effect of such a Charter on stimulating much needed FDI in Africa. As a lawyer, I am trained to believe in rule-governed behaviour, so to that end, I have an instinctive reaction that a Charter, any Charter perhaps, is better than no Charter at all, so long as it can provide for predictability and certainty of transactions. As an economist, however, I am more chastened by the knowledge that in the long term, FDI flows are probably more likely to be determined by the size and growth of markets, and other macroeconomic fundamentals.
KeywordsPetroleum Income Marketing Nigeria Stake
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