Abstract:
Tbb article 1tudle1 rorel1n direct lnve1tment (FDI) fromdomeattc and ronlp vlewpolnta. From a domndc viewpoint, lqal, cultural, economic, social, polldcal, and bl1torlcal con1trlant1 to rorelan direct Investment will be analyzed and necea,ary 1olutlon1 will be propoaed. In addldon, the author lookl at cbanpn1 pobal and 1tatf policieswith rqard to rorel1n direct lnveatment In the put two decades. International bodies 1uch u MICA and ICSID which are affiliated to the World Bank, which try to pave the way for the attraction of Conlan Investment Into developln1 countrln will be Introduced and dbcu11ed.Then the author will dllcua1 the nece11lty of Ina'• accntlon to the mentioned bodln 11 an effort for the attraction of rorelp direct Investment. At the end, the author concludea that due to Importance or 1ucb lnve1tment In forelp trade or every country, any delay In cnat1n1 the needed around, for the attraction or rorelp direct Investment can maratnallze Iran In the 1lobal village.
Machine summary:
There are a number of reasons behind Iran's inability to attract foreign direct investment which include: Fundaments and barrlen to foreign investment in Iran According to Article 81 of the Islamic Republic oflran' s Constitution granting concessions, establishment of companies and institutes active in trade, industry, agriculture, mines and service sector to foreigners is absolutely forbidden.
Existence of the dispute settlement centers like ICSID which is affiliated to the World Bank has paved the way for negotiations between foreign investors and host countries on the·basis ofintemational laws.
Suitable monetary, financial and foreign exchange policies adopted by the government to stabilize economy and curb inflation, timely and varied banking and fmancial services, trade liberalization policies, speeding up privatization drive, efficient taxation policies, reviewing labor law and establishing economic security are major prerequisites for the attraction of foreign direct investment.
The main mission of the MIGA is to promote foreign direct investment (FDI) into developing countries to help support economic growth, reduce poverty, and improve people's lives.
Attraction of foreign investment into Iran should be accompanied with transfer of modem technology and creation of added value in the country.
Creating good grounds inside the country and removing barriers can clear the way for the attraction of foreign direct investment.
In view of inefficient management of the private sector in Iran, domestic investors can avail of the existing capacities in foreign direct investment and can take advantage of their manpower as well as physical, financial and information capabilities to boost management capacities in the country.
Developing countries have thought of many ways to remove barriers and attract foreign direct investment.