The secretariat should also follow up on the work undertaken on FDI in services (e.g. by looking at the tourism industry, which is of special interest to developing countries), as most recently presented in the World Investment Report 2004.

The shift of FDI to services

The shadow banking sector s dependence on the official banking sector s liquidity and guarantees, and thus ultimately on the government, has not even been touched.

The US, the world s banker, had mutated into the world s hedge fund.

Construction is booming, and foreign investment is surging.

UNCTAD, World Investment Report 2004.

The global banking system is still weak in general, and particularly so in Europe.

Source UNCTAD 2005b, World Investment Report, 2005.

World Investment Report 2004 The Shift towards Services.

After five years of global financial sector scandals on a grand scale, patience is wearing thin.

In the manufacturing sector the respective figures are 14 for FDI from developing countries and 2.5 for FDI from developed countries (WIR04).

World Investment Report The Shift towards Services (UNCTAD WIR 2004).

Investment managers have a moral and professional responsibility to play their role in bringing some discipline into the banking system.

Resumption of robust world economic growth is the basis for delaying the implementation of the Basel III bank rules.

The investment loans and massive debts among local financing platforms, together with the off record credit channeled through the shadow banking system, are increasing the risk that non performing loans will soon shake the banking sector.

See the World Investment Report 2004 for details on the latest trends in foreign direct investment and BPO.

Still others highlight the role that the political system played in inflating the banking sector and real estate prices, particularly the sub prime sector.

Their economic prospects are correspondingly more limited. University graduates find few opportunities outside of banking and finance.

World Investment Report 2005 Transnational Corporations and the Internationalization of R D.

The request for proposal for the global custodian is in progress

Europe wants to preserve its universal banking model, with banks that serve a broad range of functions, ranging from taking deposits to making small commercial loans to high level investment banking activities.

Two new studies on New developments in African FDI and the World Investment Directory Africa are in preparation.

The global banking system and economy was thus vulnerable to the mistakes of the three main rating agencies and their flawed risk models.

Moreover, continuing investment in real estate makes it all the more difficult to wean the economy off its real estate addiction, and the real estate market off its addiction to government support.

Investment in agriculture in Africa must focus on creating a dynamic smallholder sector.

Four fifths of the FDI stocks from developing countries were in services in 2002.

FDI is negligible in primary activities and low in manufacturing. An exception is Mexico, from which relatively more outward FDI has been in manufacturing.

The share of inward FDI in the distribution sector is relatively small as most investment is directed towards the oil and gas industry.

World Investment Report 2000 Cross Border Mergers and Acquisitions and Development.

43 World Economic Forum, Partnering for Success Business Perspectives on Multistakeholder Partnerships (Geneva, 2005).

It should, for example, continue its work on global policy analysis, especially through its work on the World Investment Report.

Distorted interest rates, official guarantees, and tax subsidies encourage continued investment in real estate, when what the economy needs is investment in, say, technology and clean energy.

In China, by contrast, bank lending needs to be reigned in, but regulatory efforts have been hindered by off balance sheet financing and the development of an informal quasi banking sector.

Government officials have identified far too closely with the distorted, self interested worldview of global banking executives.

At the same time, the Global Compact and UNEP launched the Principles for Responsible Investment initiative, which is currently mobilizing the chief executive officers of the world's largest pension funds to advance responsible investment globally.

With the housing sector accounting for 10 of GDP and investment in real estate development accounting for 25 of total fixed investment, any decision to rein in runaway housing prices will be difficult.

Talk abounds of a global savings glut. In fact, the world economy suffers not from too much saving, but from too little investment.

To accelerate economic growth, the priority has been to stimulate investment and recovery in manufacturing, the sector that was hardest hit by the international crisis.

SINGAPORE After years of debate, India s government recently announced that will open the country s retail sector to foreign investment.

Investment in equipment the key to strengthening productive capital in the tradable goods sector has generally suffered even more.

Nicaragua has introduced a national development plan that focuses on economic development through investment in the production sector and in the economic infrastructure.

This failure reflects the dominance of conventional economics, which has produced closed minded group thinking within the global central banking community.

Every week more liquidity is injected into the global banking system by the United States Federal Reserve and the European Central Bank.

In fact, the world economy suffers not from too much saving, but from too little investment.

At the very least, the combination of higher interest rates in the shadow banking sector and weaker nominal GDP growth undermines borrowers debt repayment capacity.