- Latin America: in its "World Investment Report 2002" (see EI of 28 September), Unctad (United Nations Conference on Trade and Development) states that foreign direct investment flows (FDIs) into the countries of Latin America and the Caribbean fell in 2001, for the second consecutive year. This part of the world received $85 bn in FDIs in 2001 or 11% less than the previous year and 22% less than in 1999, which was an exceptional year. This fall was concentrated essentially in Brazil ($22.5 bn received in 2001 against 32.8 bn in 2000) and Argentina ($3.2 bn in 2001 against $11.2 bn in 2000). In Brazil, the privatisation programme that had attracted many foreign investors in the previous years is almost over, explaining the fall in FDIs, whereas in Argentina, which saw a rise in foreign investment flows in practically three years of recession that had allowed foreign companies to buy out national companies at advantageous prices, saw a slow down in these flows in the last quarter of 2001. Mexico, on the other hand, saw a steep rise with $24.7 bn in incoming FDIs (against 14.7 bn the previous year) and once again becomes the foremost recipient of FDIs ahead of Brazil since 1995. The acquisition of the financial group BANAMEX by CITIGROUP for $12.5 bn lies at the root of this performance, as do operations in the telecommunications sector. In Chile, flows increased from $3.7 bn in 2000 to 5.5 bn in 2001. Apart from Mexico, Brazil, Argentina and Chile, the main recipients in the region were: Bermuda ($11 bn of incoming FDIs, against 9.9 bn the previous year), Venezuela (3.4 bn against 4.5 bn), the Caiman Islands (3.1 bn against 6.9 bn), Colombia (2 bn against 2.4 bn), the Virgin Islands (1.9 bn against 800 million) and Ecuador (1.3 bn against 0.7 bn). In the years to come, analysts predict an increase in FDI flows in the region, especially in Mexico and Brazil and, to a lesser extent, Chile.