LE CAPITAL

Discussions concerning impact of Foreign Direct investments (FDI’s) in economic growth have been subject to lots of debate. Scholars, academics and policy makers have been voicing their opinion some arguing it does not matter while others arguing in favor of its role in creating economic growth although in selected sectors of the economy. Others  again establish a chicken an egg like debate on whether FDI leads to economic growth or the contrary. Looking at it through the lenses of DR Congo, the inevitable view is that it mattered.  Perhaps this appears so obviously because the flows of FDI’s from the late 90’s followed a relatedly lengthy period without any sizable investment. Whichever way we look at it, what i would like to call the « first round » of FDI’s was made of a mixed of investments between the primary sector, unveiling some mineral resources untouched for years (mainly mining), and the service industry, creating needs with...

I came across an interesting article signed by Paul Krugman (Nobel price of Economics, Princeton Professor and NY Times columnist) drawing a detailed picture of the Euro crisis. Key take out is that the Euro zone who recently showed alarming sings of weaknesses will have a hard time, if ever, operate and perform as its American counterpart, the "Dollar Zone" (The United States of America) as it lacks essential elements of a normally functioning monetary union:  Federal authorities able to support performance of weaker links, an integrated fiscal system as well as cultural binds- strong reference to language. A parallel is drawn between two members of both "Economic Zones": The state of Nevada in the US and Ireland in EU to show how the notion of being part of a Nation makes one member better off in similar crisis scenarios A second one is drawn between the management of the current euro crisis and Argentina's confidence crisis (Early year 2000) t...