Secretariat draft
not poor, island states of the Caribbean and Pacific.
21 June 1993
6.23 In deciding on the distribution of its investments and proposals for
adding new countries to the portfolio and possible winding down its
activities in others, CDC will also wish to take account considerations of
administrative efficiency.
6.24 Apart from poor countries and small island economies, there will be
other countries where the UK has particular political and economic
interests and in which CDC could have a catalytic role in encouraging
private foreign direct investment and helping to develop the indigenous
private sector. These could include some in which CDC is not yet
authorised to operate, for example in Latin America, the Pacific Rim and
Eastern Europe.
6.25 It would, however, be important to take account of the extent to
which investment capital and skills of the sort which CDC can provide are
scarce in particular areas (e.g. in E Europe). CDC is normally a long term
investor. Care would therefore also be needed in respect of the pattern
of investment in countries where CDC's particular contribution and
catalytic role might not be necessary for more than a limited time.
6.26 Given resource constraints there should not be a significant
increase in the number of countries in which CDC actively operates. The
review and discussion with ODA would therefore need to consider and propose
countries particular the richer in which activities should be wound
down.
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6.27
Having regard to the current Review and changes in priorities, and
to other targets, it is considered no longer appropriate to have a target
for the proportion of new investments in the Commonwealth.
7
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