Ronald wall to urbanbairam

POSITIONING UFA: Foreign investment versus domestic investment

Ronald Wall IHS/ Erasmus University 21-08-2013

Importance of FDI for urban development

1. Since 1980 FDI has overtaken trade in terms of growth and now accounts for the lions share of GDP (WIR / UNCTAD 2002).

2. Top 500 firm account for 90% of global FDI and control 50% of world trade (Rugman and Verbeke 2005).

3. The success of an urban region is strongly related to its relative international position within networks of capital (Coe et al. 2004).

Top 50 destinations of FDI

9 34

Geography of global FDI

Rank of FDI into Russian cities

15

Rank of domestic investments to Russian cities

5

Rank 1 2 3 4 5 6 7 8 9 10 11 12 13

Domestic investments Financial Services Business Services Coal, Oil and Natural Gas Building & Construction Materials Public services Real Estate Transportation Rental and leasing services Software & IT services Wholesale and retail trade Aerospace Electricity and gas supply Pharmaceutical

Foreign investments Textiles Financial Services Building & Construction Materials Beverages Consumer Products Food & Tobacco Automotive OEM Engines & Turbines Hotels & Tourism Industrial Machinery, Equipment & Tools Leisure & Entertainment Rubber Software & IT services

Top sectors of FDI (2003 – 2012)

Top sectors of Russian FDI (2003 – 2012)

Future steps

1. Who are your competitors in terns of attracting investment?

2. What urban changes need to be made to attract investment to Ufa? 2. What urban programs will this lead to?

3. Where will these programs be positioned in the city?

4. What urban design is needed?

5. What marketing and acquisition is required?