South-south foreign direct investment

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A new class of "southern multinationals" [are] reshaping the geography of global investment. These companies are emerging from unlikely latitudes to grab sales from more-famous brands, often using their homegrown experience with Third World obstacles—from corruption to red tape and bad roads—to succeed in foreign emerging markets. The rise of aggressive developing-world multinationals also signals a tectonic shift in the way traditional have-not nations regard one another—not merely as rivals in the scramble for rich-world consumers or supplicants in the foreign-aid bread line but as protagonists in the global economy.

That was Mac Magolis in Newseek. See also Joe Battat and Dilek Aykut of FIAS:

South-South FDI now accounts for one third of all FDI going to developing countries, and is growing. This is good news because this FDI typically reaches very poor and remote developing countries. This is because Southern multinational corporations (MNC) are more familiar with challenging investment climates and are also better equipped to deliver products tailored to low income consumers.


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