ABSTRACT
The debate over the role of foreign direct investment (FDI) 1 in sustainable economic development in Africa is central to the discourse about the economic options for African countries in this period of institutionalization of modern capitalist economies and modernist liberal ideas. Most, but not all, analysts assume that Africa needs external capital and that foreign direct investment is an increasingly important source of capital as development aid becomes more scarce and controversial. Whereas some scholars focus on the need to improve the investment environment to attract more FDI, others argue that foreign investment has done little to stimulate sustainable development in African countries. Critics are divided into those opposed to any external control over the development of Africa's resources and those who argue that the real problem has been the governance of FDI. Proponents of this latter view argue that strengthening domestic institutions and international oversight can ensure that FDI contributes more reliably to sustainable economic growth that creates local jobs that satisfy global labor standards while protecting the natural environment.
