The Contribution of Foreign Direct Investments to Poverty Reduction in Mali.pdf

1、The purpose of this thesis is to investigate on the wntribution of foreign directinvestment on the poverty reduction in Mali. In fact Mali is a landlocked country inwest Africa covering an area of 1241238 kilometer squar

2、e ,which ranks among the tenpoorest countries worldwide according to iJNDP's Human Development index and interm of GDP per capita. The industry extractive (Mining) occupied the top of FDIinflow in Mali.The country dispos

3、e enormous natural resources under exploited it sposition with regard to investment opportunities is very close to that of the region as awhole .In this regard the key sectors are as follows: Mining- Agriculture- Infrast

4、ructure一waters resources- services(tourism and telecommunication)一Industry (especiallyprocessing of cotton and other agricultural product).The most important challenge of Malian government is the improvement of itsbusine

5、ss climate of FDI in order to accelerate economy growth, sequentially thepoverty reduction. In fact to be reasonably successful in attracting FDI, Mali wasimplement its Foreign investment law in 1991, the investment code

6、 offers certainincentives mostly in form of tax holidays on five to ten years to companies preparedto invest in certain area.Foreign direct (FDI) is increasingly viewed as way to reduce poverty and spureconomic growth. I

7、t provides not only employment. and financial capital, but also ameans of transferring technology and skills and increasing access to global markets.Some literature explained that FDI in the natural resources can contrib

8、ute to fiscalrevenue, which might be used for the poverty reduction, especially by spendingmoney for education, if the governments are willing and able to implement thenecessary policies (Slaughter, 2001). Also FDI in t

9、he primary sector (mining) mightbe a source of investment in high technological goods, but with few spillovers on thehost economies. The natural resource sector is also highly dependent on the quality ofgovernance (l:,ei