So what is needed is massive public investment in cleaner energy provision, coupled in the short term with appropriate subsidies to offset high initial prices.

Also driving China s high investment rate is the declining efficiency of investment capital, reflected in China s high incremental capital output ratio (annual investment divided by annual output growth).

Countries that adhered to it experienced initial investment led success, followed by repeated crises and stagnation.

With little initial investment, industrial scale factories can make huge profits by manufacturing millions of tablets.

Any value lower than one would indicate that the project's PV is less than the initial investment.

Establishing such a structure requires, however, an initial investment in the form of dedicated staff and improved technology.

Meanwhile, high domestic borrowing costs are undermining private investment.

That means that investment is extremely high and that, despite the high share of infrastructure investment, there is an urgent need to manage the potential risks.

But gold is also a high risk and highly volatile investment.

The first is the high return on foreign investment in China.

In 2004, China's direct investment in Africa reached 135 million, a record high for China's annual direct investment in Africa.

Without high speed Internet, foreign investment and indigenous entrepreneurship are almost impossible.

Countries that have signed such investment agreements have paid a high price.

Investment is high, but further investment growth risks misallocating money, so reductions in China s trade imbalance may be hard to achieve.

Improvements and reforms of transit regimes could start out with an initial investment which then induced a virtuous cycle, where more transit trade encouraged more investment, which in turn facilitated further transit trade.

That sounds like an attractive proposition but someone must make the initial investment in exchange for a claim to the later savings.

Business investment is also weak, even though large corporations have very high cash balances.

Indeed, rapid growth in investment may translate into high import growth and trade deficits.

So, either the initial 2.5 forecast was too high or the increase of one percentage point is too large.

The last time China saw such high growth in domestic investment, the savings rate was not as high as it is now.

Initial conditions are so low that only high and sustained growth levels may have a noticeable impact on poverty reduction.

A major route is through initial public offering (IPO) which invites risk funding by the public for potential high gain.

At the same time, high oil prices have enabled higher social spending and infrastructure investment.

For this purpose, creating an attractive investment climate should be a high and urgent priority.

As far as Chinese demand is concerned, investment in infrastructure is continuing, although the share of capital investment in GDP has been approaching very high levels.

The initial installation cost of a nuclear power plant may be high its operating costs, however, are relatively low and stable.

The strength of the Indian economy is underpinned by a high saving rate and robust investment.

In earlier times, growth was fueled by capital scarcity capital investment attracted a high rate of return, and this created a virtuous circle of saving and investment.

But if the problem is weak investment, then a reduction in such incentives will lead to excessively high real interest rates when the factors holding back investment dissipate.

This ramification is highlighted by the consistently high domestic absorption (private and public consumption and investment expenditures to GDP ratio) and the allocation switch from investment to consumption.

Meanwhile, the World Bank and the European Investment Bank have stopped lending to high emission coal plants.

So monetary policy has since remained tight, with high interest rates contributing to slowing investment and consumption.

Instead, product, labor, and financial markets must be reformed so that high quality private sector investment emerges.

The production of high quality forest products for international markets can require significant investment in advanced technology.

At the same time, since returns to capital are kept low by high wages, very little investment occurs. The excess of savings over investment flows abroad as capital exports.

Date of initial communication 4 December 1996 (initial submission)

Date of initial communication 17 August 1998 (initial submission)

Date of initial communication 8 October 1998 (initial submission)

Date of initial communication 14 May 2001 (initial submission)

Date of initial communication 22 July 1998 (initial submission)

Date of initial communication 6 November 2000 (initial submission)

Date of initial communication 22 July 1998 (initial submission)

Date of initial communication 18 June 2002 (initial submission)

Date of initial communication 14 October 2003 (initial submission)

Despite severe financial repression, it has experienced extremely high savings and investment, owing mainly to Chinese households strong propensity to save and massive government driven investment, particularly by local governments.