The Importance of Investment in the Global Economy

September 10, 2010
Shopper Tries on Sunglasses in New York

About the Author: Robert D. Hormats serves as Under Secretary of State for Economic, Energy, and Agricultural Affairs.

Here's a trivia question for our geography buffs. This week I traveled to the Chinese city which is home to the world's largest manufacturing base for sunglasses. Any guesses?

The correct answer is "Xiamen." And I was visiting for the 2nd annual World Investment Forum (WIF) sponsored by the United Nations Conference on Trade and Development. The WIF draws together policymakers, investors, businesses leaders, and other stakeholders to highlight the importance of investment in driving economic growth.

Given the impact of the global economic downturn on investor confidence, this year's focus on investments in sustainable development was on the mark. As I mentioned during my address to the Forum on Monday, foreign direct investment flows are the vital currents than can help restore economic growth.

If you'd like to read my remarks in full click here.

Comments

Comments

OysterCracker
|
United States
September 11, 2010

O.C. in the U.S.A. writes:

If Obama were to state that all American children must take swimming lessons. Think of how many American bathing suits and swim caps that would generate. If Obama stated that all American children must learn to kayak think of how many American kayaks and life preservers each school must own? If Obama stated that all American children must learn to hike. Think of how many American boots would be sold. When children are moving and growing they are consuming. We need to get everyone moving so we can get this economy going.

Ashim C.
|
India
September 11, 2010

Ashim K.C. in India writes:

One would strongly advocate formulation of a more precise and detailed mapping of societies in terms of all their limitations and capabilities and use that to investment and trade cycle for rotation of capital from higher techno economies to lower techno economies to buy goods and services of low technology societies, empower them with purchasing power to buy goods and services of higher technology societies to help them emerge out of effects of saturation of their industrial and economic development and their stagnating effects. Investment should be seen as a vehicle to transfer surplus capacities of higher techno industrial societies to lower techno industrial societies to create disposable income there for all round growth of world economy. Assumption is cumulative capabilities of world economy are sufficient for world to share high quality life in a sustainable manner. Problem is this sufficiency of capabilities is not supported by right intentions. This requires cleansing distorted perceptions of self interest, which afflicts civilization with much clever marketing and economic diplomacy. SMARTNESS IS IN BEING SIMPLE.

OysterCracker
|
United States
September 12, 2010

O.C. in the U.S.A. writes:

@Ashim K.C.
That's an excellent point,"Smartness is in being simple". Great point!

.

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