Country Attractiveness
There are multiple factors determining host country attractiveness in the eyes of large foreign direct institutional investors, notably pension funds and sovereign wealth funds. Research conducted by the World Pensions Council (WPC) suggests that perceived legal/political stability over time and medium-term economic growth dynamics constitute the two main determinants
Some development economists believe that a sizeable part of Western Europe has now fallen behind the most dynamic amongst Asia’s emerging nations, notably because the latter adopted policies more propitious to long-term investments: “Successful countries such as Singapore, Indonesia and South Korea still remember the harsh adjustment mechanisms imposed abruptly upon them by the IMF and World Bank during the 1997-1998 ‘Asian Crisis’ What they have achieved in the past 10 years is all the more remarkable: they have quietly abandoned the “Washington consensus” by investing massively in infrastructure projects : this pragmatic approach proved to be very successful.”
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“I have never looked at foreign countries or gone there but with the purpose of getting to know the general human qualities that are spread all over the earth in very different forms, and then to find these qualities again in my own country and to recognize and to further them.”
—Johann Wolfgang Von Goethe (1749–1832)