Foreign Direct Investment (FDI) – investment by foreign companies in overseas subsidiaries or joint ventures – has a traditional reliance on natural resource use and extraction,particularly agriculture, mineral and fuel production. Though this balance has shifted in recent years, the poorest countries still receive a disproportionate amount of investment flows into their natural resource sectors. | Foreign Direct Investment and the environment From pollution havens to sustainable development A WWF-UK Report Nick Mabey and Richard McNally July 1998 WWF Conserves wildlife and the natural environment for present and future generations. All rights reserved. All material appearing in this publication is subject to copyright and may be reproduced with permission. Any reproduction in full or in part of this publication must credit WWF-UK as the copyright owner. The views of the author expressed in this publication do not necessarily reflect those of WWF. The author has used all reasonable endeavours to ensure that the content of this report the data compiled and the methods of calculation and research are consistent with normally accepted standards and practices but no warranty is given to that effect nor any liability accepted by the authors for any loss or damage arising from the use of this report by WWF-UK or by any other party. The material and the geographical designations in this report do not imply the expression of any opinion whatsoever on the part of WWF concerning the legal status of any country territory or area or concerning the delimitation of its frontiers or boundaries. For further information contact Nick Mabey Economics Development Policy Officer Richard McNally Economics Development Policy Assistant WWF-UK Panda House Weyside Park Godalming Surrey GU7 1XR Telephone 44 0 1483 426444 Fax 44 0 1483 426409 Website WWF-UK 1999 Registered Charity No 201707 CONTENTS Executive Summary 1 Structure of the PART I ANALYSIS 2 FDI AND SUSTAINAB LE DEVELOPMENT SCALE TRANSITION AND Trends in Economic Social and Environmental Environmental Advantage or Market and Policy Failures .16 Environmental Kuznet s Curves Will Growth Bring Environmental Sustainability .17 The relationship of the EKC to economic theories of Transitional Effects and Long-run .
