UN World Investment Report 2021-Can the U.S. Become an Investors Reinvestment Choice?

America was once a producer of many things
We can be again! (Julian Historical Society)

The UN World Investment Report 2021 discussed the changes in the investment market since the pandemic started. Investments have declined and many of the world economies are lagging. The U.S. also took a hit but is starting to realize that a new path forward would be helpful. 

We are a large economy and it takes time to get people on board that thoughtful change is needed to help attract investors and ensure that the means of production are maintained within the country. 

One thing that investors want is to realize higher levels of profit with less risk. We know that we need to innovate across most of our society but we don't really have a plan. We wouldn't need a plan if it would have done it naturally but we have failed to be forward thinking in prior decisions. We are likely near the last place in our "window of opportunity" to revamp our society. After that...things might get more costly and resources might not be available if needed (We must develop a mindset of national development and innovation.. I.E. an "American Renaissance". )

To return investment relies on a great many things but having locations where certain industries can rapid develop and mixed with FDI investment can lead to even greater profits for everyone around. Its not perfect but I'm not at the moment seeing a different way to push national competitiveness upwards (See Transactional Cluster Theory. Its not finished yet. Attracting Multinational Investors Delta County and Start Up Firms Delta County)

-Global FDI flows dropped by 35 per cent to $1 trillion, from $1.5 trillion in 2019.

-Developed countries like the U.S. took the most hit as capital moved to developing countries.

-UNCTAD estimates that the value of sustainability-themed investment products in global capital markets amounted to $3.2 trillion in 2020, up more than 80 per cent from 2019.

-Profits of multinational enterprises (MNEs) down 36 per cent on average and reinvested earnings were also down. 

-FDI flows to Europe fell by 80 per cent. North America was down 40%.

-US inward FDI 10, 802, 647 millions and US outward FDI $8, 128, 494 millions

-US decline was caused by failure of companies to reinvest earnings. (See Perpetual Sustainable Development)

The UN World Investment Report 2021