Some worry that capital market liberalization, and FDI in particular, crowds out local efforts and undermines the development of domestic entrepreneurs.
Laura Alfaro and Andrew Charlton at Harvard took 24 million observations of listed and unlisted private firms in 98 developed and developing countries in 1999 and 2004 to study the nature of this relationship.
[..] not only can such technologies increase earnings, but those increased earnings […], in turn, can be expected to lead to improvements in health and education. In addition, because mobile phones in Kerala are a private sector initiative rather than a development project, other than through perhaps raising interest rates for capital, they do not crowd out investments in other projects.
Hoping to improve government accountability and assuage ethnic tensions, Spain has handed over the power to regulate transportation, commerce and the environment to regional governments. The devolution has backfired. From the Wall Street Journal [subscription required]:
An advertising agency, JWT, reports on a growing interest of the private sector in the West in a consumer group that has been traditionally overlooked by marketers – the Muslims. Food, finance and packaged goods represent the bulk of sales to this clientele, with higher education and income levels than general U.S. population.
See also a short video of IKEA courting Muslims in the heartland of America.
Food production is now so energy-intensive that more carbon is emitted providing a person with enough calories to walk to the shops than a car would emit over the same distance. The climate could benefit if people avoided exercise, ate less and became couch potatoes.