from Greenberg Center for Geoeconomic Studies

Global FDI Policy

Correcting a Protectionist Drift

Council Special Report
Concise policy briefs that provide timely responses to developing crises or contributions to current policy dilemmas.

Overview

Foreign investment has been a principal engine of global economic growth in recent years.

David M. Marchick

Managing Director, Carlyle Group

Matthew J. Slaughter

Adjunct Senior Fellow for Business and Globalization

More on:

Capital Flows

Foreign investment, though, is not immune to the sort of resistance that we are seeing with respect to the movement of goods and services. Indeed, just as with trade, calls to restrict investment are growing louder in many countries, with potentially significant adverse political and economic consequences. In this Council Special Report, David M. Marchick and Matthew J. Slaughter track the rise of investment protectionism. They examine trends in a number of countries, documenting moves toward restricting investment through both legislation and regulation. They also analyze the reasons behind these trends, such as increased concern over investment from “nontraditional” sources, both private and sovereign wealth funds.

The report ends with recommendations for policymakers. Acknowledging governments’ legitimate national security interests, it lays out clear principles for host countries to follow in regulating foreign investment. The authors also recommend actions to be taken by international organizations to help foster sound policies in these host countries. The result is a compelling analysis and a strong case for governments everywhere to take steps to maintain openness to investment.

Part of the Bernard and Irene Schwartz Series on American Competitiveness.

More on:

Capital Flows

Top Stories on CFR

Cybersecurity

Deep fakes are a profoundly serious problem for democratic governments and the world order. A combination of technology, education, and public policy can reduce their effectiveness.

Saudi Arabia

Unless the Saudi government speaks and acts quickly and honestly about the disappearance and reported killing of Saudi journalist Jamal Khashoggi, its own reputation will incur irreparable damage.

Trade