GOVERNANCE AND THE FOREIGN DIRECT INVESTOR

Mike Faber's article examines what is thought to constitute 'good governance' towards direct foreign investment (DFI). Draft guidelines being prepared by the Development Committee of the World Bank and IMF are compared with a representative Foreign Investment Code. Certain similarities, difference and trends are noted. One of the similarities is that the rather narrow, legalistic nature of both Guidelines and Code tends to ignore other, more critical concerns of the potential investor. The article ends by suggesting that better governance of the world economy could do more for DFI than either Guidelines or Codes.