The foreign direct investments on the rural areas

Abstract

The statistical data show that the agricultural and rural areas are less attractive for the foreign investors, even in the developed economies. The dilemma is that the national and international strategies for rural development should include actions in order to respect the foreign investors and transnational corporations’ decisions, but in the same time they should solve the rural development social problems. The national and international policy with full regard for the right of each country to determine its own national policies and priorities is required to maximize the contribution of foreign investments to the goals of rural development and to ensure that the activities of foreign investors developing countries, in particular, by transnational agro-industry corporations, are not inconsistent with and do not impede the accomplishment of overall economic and social development objectives. This paper presents three priorities. First of all, it should be accelerated the development of national expertise in order to evaluate proposals for foreign investment in agriculture and other activities affecting rural development and work jointly with potential investors in formulating investment programs and projects that are compatible with national needs, priorities and objectives. Second, it should be oriented the current United Nations efforts related to transnational corporations toward the formulation of a set of criteria, adjusted where necessary for the special circumstances of each country. Third, Romania should eliminate the major obstacles, as regards land tenure and policy. The aim consists on assessing the operations of foreign investors with a view to increase their favorable impact on rural development