Handbook for Promoting Foreign Direct Investment in Medium-size, Low-Budget Cities in Emerging Markets
(New York: VCC and MCI, 2009).
In November 2009, the Vale Columbia Center on Sustainable International Investment and the Millennium Cities Initiative (MCI) released the Handbook for Promoting Foreign Direct Investment in Medium-size, Low-Budget Cities in Emerging Markets. With foreign direct investment (FDI) flows declining worldwide by an estimated 40-50% this year (following a decline of over 10% in 2008), investment promotion has become more important than ever: in a highly competitive world FDI market, promotion can make all the difference.
Investment promotion is particularly important for cities other than capital cities, as investors in manufacturing and services often locate primarily in a country’s capital city. Hence, commercially viable investment opportunities need to be identified at the city level and in surrounding areas and brought to the attention of investors elsewhere in the country, in the region and internationally – and investors need to be assisted when they establish themselves.
At the same time, effective investment promotion generally requires the development of an FDI promotion strategy, including a detailed sector competitiveness analysis that involves identifying key target markets and benchmarking against competitors, an exercise that may require in-depth groundwork and expertise. Therefore, the Handbook seeks to assist medium-size, low-budget cities in creating a capacity for investment promotion. It is a practical “how to” guide for city investment promotion based on the experience of different investment promotion agencies and experts from around the globe.