| Possession, control or access to the world's advanced technology resources is a key factor in securing global competitiveness. African Less Developed Countries (LDCs) find themselves in a disadvantaged position as they attempt to access appropriate technologies. Multinational Enterprises (MNEs) are recognized as the principle holders of commercial technologies and the wherewithal to transfer these to economies of their choice. Therefore, attracting foreign direct investment (FDI) is a priority for most countries. Restatements of Raymond Vernon's Product-Cycle theory propose that where MNEs are given significant freedoms to wholly-own their subsidiaries they are likely to invest more capital and transfer more advanced technology. However, as the availability of private capital continues to decrease, MNEs are channeling their investments to industrialized countries leaving African LDCs out of the global investment framework. Underlying the paucity of FDI flows to Africa is the absence of an attractive investment climate. Thus, a reversal of the economic decline that has visited the continent will require the consistent application of selective economic policies geared towards improving the investment climate. This endeavor will also require the support of the international community. |
