By Dennise Williams, Staff ReporterFOREIGN DIRECT Investment (FDI) in Jamaica fell by US$235 million in 2002 over 2001, figures released by the United Nations Development Programme (UNDP) reveal.
Foreign Direct Investment represents the investment by foreign companies in a host country. This 22 per cent drop means that investment inflows in Jamaica were US$614 million in 2001 as against US$470 million in 2002.
Globally, FDI flows fell to the lowest level since 1998. Announcing these figures in Kingston recently, Bartholomew Nyarko-Mensah, the UNDP's Deputy Resident Representative in Jamaica, stated that Jamaica did better than some sections of the Caribbean and Latin America.
Globally, FDI flows fell to the lowest levels since 1998, and the Caribbean region is at a 36-year low. FDI is an important part of Jamaica's push for economic development. According to the World Investment Report, there were 177 foreign affiliates located in Jamaica.
Attracting even more is daunting because of the competitiveness of the market and every country wants to play host to foreign investors.
COMPETITIVE
"These days it is very competitive," said Karen Turner, new Mission Director of the USAID. "Money can flow across borders so easily."
Jamaica is competing against other countries for investment and companies want a sense where they can best compete, she said. To be attractive, Jamaica must address some of its problem areas.
Dr. Gavin Chen, Professor of Finance and Entreprenuership at the University of the West Indies, said, "We don't have an acceptable framework for dispute settlement. The judicial system is slow. Transnational companies want a system that is quick and impartial."
