chapter  4
12 Pages

The Investor Perspective

Today’s international investor is confronted with a far more volatile and

uncertain world than before the global economic downturn. While parts

of the global economy are now definitely showing strong signs of recovery

and FDI activity is on the rise, flows are still lower than they were in 2007

(even though by 2011 they slightly exceeded the pre-crisis average).1 Access

to finance does not appear to be the principal impediment to investment,

however. Recent analysis from UNCTAD cites investor concerns over

regulatory uncertainty and operational risk as the main factors behind

investor reticence, and with the macroeconomic, social and political

unrest that has erupted in various parts of the world in 2011, this is

understandable.