Although FDI perspectives for 2008 are not so rosy due to the world financial crisis, after the four consecutive years of growth global FDI inflows rose in 2007 by 30% to reach $1,833 billion, according to the World Investment Report by UNCTAD. A great number of factors influence the decision by investors on their investment destination; but as the international practice shows, the well rounded and targeted efforts by the host Government appear to affect such decisions substantially.

Rising stock and flow of FDIs in developing and transition economies and growing numbers of established foreign investment enterprises present increasing challenges for investment promotion agencies. Created in February 2007, investment promotion agency of Uzbekistan “Uzinfoinvest” has been actively building on its institutional capacities through participating in investment promotion workshops, training its staff in best investment promotion tools and practices, accessing the world investment promotion communities.

To improve the skills and capacity of “Uzinfionvest” officials as well as those of the investment promotion departments of the national industry associations, UNDP under its joint project with the MFERIT “Capacity Building and Strengthening Foreign Trade and Investment Promotion Institutions in Uzbekistan” helped to arrange and conduct together with “Uzinfoinvest” IPA mini-workshop “Investment Promotion Roles and Functions”.

The key presentation at the workshop made by Mr. Anders Jonsson, member of FDI research and consulting company Oxford Investment Research, international consultant engaged under this joint project, included a discussion on investment location decision making process and the world’s best practices in investment promotion. The substantial attention during the workshop was given to detailed analysis of stages of promoting a country to potential foreign investors.

It is noted that the best practice in promoting a location is when promoting and marketing activities are preceded by strategy formulation, “offer” assessment and development, and institutional development. Currently, in the world within promotion and marketing activities investment facilitation and servicing functions are devoted the biggest share of efforts and resources of IPAs.

The sector targeting methods and techniques were also discussed during the event. At the time present, the project is working now on the new publications “Investment Guide to Ferghana Valley” and “Investing in Food Processing”. These sector-specific and region-specific investment guides are aimed at identifying and promoting specific location’s and specific industry’s strengths and advantages for attraction of foreign direct investments.

MFERIT and UNDP have been promoting investment through their joint project, “Capacity building and Strengthening Foreign Trade and Investment Promotion Institutions in Uzbekistan” which has the support of UNCTAD, the ICC, “Uzinfoinvest”, and Chamber of Commerce and Industry of Uzbekistan. The project has produced the Investment Guide to Uzbekistan which is complemented by the Catalogue of Investment Opportunities in Uzbekistan and the Cost of Doing Business in Uzbekistan.