Why Investment Matters: The Political Economy of International Investments

14 March 2007

Written by: Kavaljit Singh

Why Investment Matters: The Political Economy of International Investments

International investment matters. Why? Because investment is not just a blandly apolitical process by which money is mysteriously made to grow, but a process in which companies and governments define and redistribute access to assets, determining who accumulates wealth and at whose expense.

To influence this process, the public needs to know how investment works, who the main players are and what the trends are. In this book, Kavaljit Singh explains the central role transnational corporations (TNCs) play in the investment debate. He sets out in clear and simple language how investment patterns have changed in the last two decades. He debunks some of the myths surrounding investment flows, and he suggests ways in which the vast sums of money sloshing around the global financial system can be brought back under the democratic control of citizens and governments.

It is too simplistic to state that all investments flows are good, or all are bad. Rather, as this book argues, the debate should center on: “Who benefits?”, “Who loses?”, and “What strategies are needed to ensure foreign direct investment contributes to development”?

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