World Bank2013-08-022013-08-022003-01-310-8213-5338-11014-8906https://hdl.handle.net/10986/14781Strong cyclical dynamics, together with an easing of macroeconomic policies in the United States and elsewhere, have boosted large parts of the global economy, into the initial phase of a recovery in 2002. Nonetheless, the global recovery is fragile, because investment spending is insufficient to underpin continuing growth, although long-term prospects remain promising. Although global competition is creating new opportunities for developing countries, harnessing globalization requires reducing barriers to competition, using targeted interventions carefully, but essentially, supported by sound public investments. International agreements on investment, and competition policies can provide benefits through reciprocity, while agreements on investment policy are likely to have strong development effects, only if they deal with the big issues facing developing countries. Consequently, competition agreements should focus on restraints to competition that hurt developing countries: policy barriers in markets abroad; private restraints on competition; and, trade restraints officially sanctioned.en-USCC BY 3.0 IGOEconomic aspectsInternational tradeEconomic regulationGlobalizationGlobal marketCyclical swingsMacroeconomic policyEconomic recoveryInvestmentsInvestment barriersEconomic growthCompetition (economic)Developing countriesCompetitive equilibriumTrade barriersPublic investmentsInternational agreementsInvestment policyCompetition policyReciprocityPrivate capital flowsRestrictive business practicesagricultural subsidiesagricultureantitrust lawsBarriers to entrybilateral investmentbilateral investment treatiesbondsborder protectioncapital flowsCapital inflowscapital marketsCartelcartelscollaborationcompetition lawcompetition policiescompetition policycompetitive forcesconsumersCross-border tradecustomsdebtdeflationdemographicsdeveloped countriesDevelopment Economicsdevelopment strategydividendsdomestic fixed investmentdomestic investmentdomestic lawdomestic marketdurable goodsEconomic Analysiseconomic growtheconomic impacteconomic performanceEconomistsexport cartelsexport growthexport sectorsExportsexternalitiesfinancial marketsFinancial Sectorfinancial systemforeign capitalforeign companiesforeign direct investmentforeign investmentforeign investorsFree TradeFree Trade AgreementGDPGlobal competitionglobal economyGlobal effectsGlobal productiongross domestic productgrowth rateshuman capitalImport competitionimportsincomeincome countriesindustrial economiesIntellectual PropertyIntellectual Property Rightsinterest ratesInternational Agreementsinternational communityInternational CompetitionInternational cooperationinternational investmentinternational marketsInternational TradeInvestment climateinvestment climatesInvestment Disputesinvestment flowsInvestment growthinvestment incentivesInvestment Measuresinvestment policiesinvestment policyinvestment spendinginvestment treatiesinvestor protectionslearninglegal statusliteracyLow-income countriesmacroeconomic policiesmarket accessmarket countriesmarket sharemergersmonopoliesMultilateral Agreementmultinational companiesnational policiesnatural resourcesNon-oil commoditiesoilOil pricesphonesprice effectsprivate investmentPrivate sectorproducersproduction networksProductivityproductivity growthProductivity increasesProfitabilityproperty rightspublic sectorquotasreducing barriersreform programsregional traderestrictionssavingsstructural changestructural shiftssubsidiary rightssustainable developmentTariff ratesTechnological progresstelephone servicestradetrade barrierstrade blocTrade Lawtrade negotiationstrade reboundsTrade restrictionstradeoffstrading systemtransparencytransport coststroughunilateral reformsworld economyworld exportsWorld tradeWorld Trade OrganizationWTOWorld Bank10.1596/0-8213-5338-1