Impact of FDI and reforms on economic growth in Latin America

A comprehensive review of the impacts of foreign investment liberalization and related economic reforms in Latin America, shows that, with some exceptions, foreign investment has fallen far short of stimulating broad-based economic growth and environmental protection in the region, according to a report by Tuft's Working Group on Development and Environment in the Americas. The report recommends that national and regional policies aimed at improving national firms’ capabilities should be implemented and that the “policy space” for such policies should be accommodated in bi-lateral, regional, and global trade and investment treaties.