Committee
ECOSOC
Country
Russian Federation

Author

Michael Jasson
Indonesia

Cite as https://mymun.com/ppdb/18733

Committee: Economic and Social Council

Country: Russian Federation

Delegate: Michael Jasson, Universitas Indonesia

Topic: Foreign Direct Investment and National Sovereignty in Africa

 

Foreign Direct Investment is a term to describe an investment by the individual or companies towards a business interest located in another country.[1] It is one of the ways for countries to develop their economy. However, the FDI itself has the tendency to create economic dependence from the respected state to the investors. This can happen if the investors invest too much on a country, especially on critical infrastructure and the government cannot pay back the debt to the foreign investors. Russia itself know currently facing the declining number of FDI due to geopolitical tensions between Russia and Ukraine.[2] At the same time, Russia also improved some of its regulation on its strategic sectors so it will not be ‘fully overtaken’ by foreign investors. Until this very day, the international community hasn’t yet created any international regulation to balance the national sovereignty and incoming foreign investment to a country. The regulation for the investment is usually only regularized by domestic government, for example, the Committee on Foreign Investment in the United States (CFIUS). [3]

            In this issue, Russia strongly believes that the foreign direct investment is necessary for the economic development of a country especially in Africa where most of the country in the region is still need a lot of capital to develop. This can be seen as the African Union has already invited several countries to invest more in Africa (including the Russian Federation). Since the end of the cold war, Russia already invested but not significantly in Africa in terms of military equipment for some countries.[4] Thus, the Russian investment in Africa neither fully take over a...

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