Role of TNCs in Agricultural Production and Development

After a five-year growth, world foreign direct investment flows fell in 2008 due to the global economic crisis. The decline has spread from developed to developing countries with inward investment falling as well. In addition, there is renewed and growing interest in the role of transnational corporations (TNCs) and trend of investments in agricultural production and development in developing countries due to food security concerns. These observations are forwarded in The World Investment Report 2009 by the United Nations Conference on Trade and Development (UNCTAD).

This report is the most comprehensive record of various activities undertaken by TNCs in the agriculture sector including inputs for crop production, processing and retailing. It recommends that efforts to boost investment and agricultural productivity through TNC involvement require an integrated policy approach by governments. In addition, a concerted effort is required by all development partners to support and equip host-country governments, farmers, cooperatives and others to maximize the development benefits of TNC involvement.

Full report is available at http://www.unctad.org/en/docs/wir2009_en.pdf