Foreign Direct Investment (FDI) has cooled dramatically. Many OECD countries are presently recording inflows of less than 25% of what they received just two years ago. However, developing countries and transition economies have been less affected by the decline. They now receive more than a third of worldwide FDI flows, underscoring the potential of direct investment to act as a catalyst for growth and sustainable development.

This volume contains an assessment of trends and recent developments, an article on China's investment policy reform, an article on policies and incentives for attracting foreign direct investment, a special focus on transparency and investment, and a report on a survey of implementation of methodological standards for direct investment.