Best Practices in Investment for Development

Normally, foreign direct investment (FDI) requires peace and stability. The purpose of this study is to examine the reverse relationship: whether, when and how FDI can be attracted and utilised in post-conflict conditions to promote economic stability and development, thereby making a contribution to peace-building. Focusing on Croatia and Mozambique, this study examines questions of FDI attraction and benefits arising in post-conflict countries: What kinds and volumes of FDI inflows can be expected when conflict ends and over what timeframes? What policy measures impact these outcomes? What are the key contributions of FDI, and how can these be improved by government policies and programmes? Croatia and Mozambique have balanced these competing agendas effectively, thus managing to both attract and benefit from FDI in their economies. FDI has made significant contributions towards the economic growth and stability that have helped entrench peace in both countries since emerging from conflict in the early 1990s.