ABSTRACT
This chapter explores the policy issues relating to the positive effects of a key factor of globalisation. It focuses on how developing countries can maximise the benefits generated by the positive spillovers of foreign direct investment (FDI) and therefore engender their economic growth rates. The chapter then focuses on policy issues that relate to how the negative globalisation effects can be contained, so that the economic growth is translated into sustainable development. A regional economic integration scheme among proximate developing countries, if based on an economic rather than a political foundation, can contribute towards introducing peace and political stability, inducing economic stability, creating a larger resource base, and creating a large economic bargaining unit. Most of the economic blocs comprising developing countries have been established with a major focus on political than economic considerations. Macroeconomic stability is critical to the continued success of any development strategy. Regional economic integration can help support stable macroeconomic policies.
