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During the 1990s, institutions became the focal point for understanding economic growth, especially when many developing countries failed to show the high economic growth rates predicted by IMF policy prescriptions. In the 21st century, a number of development projects focused on strengthening institutions in a number of countries around the world so that they could attract foreign direct investment and take advantage of trade agreements.
Relying on firsthand experience working on projects in Southern Africa and the Caribbean, Sarita D. Jackson, Ph.D. discusses the link between institutions and foreign direct investment (FDI) and international trade performance. What challenges have these regions faced in terms of institutional development, attracting FDI and promoting international trade? How have these regions tried to overcome these challenges? What steps can these regions take to strengthen different types of institutions in an effort to perform better in the world of FDI and international trade?
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