|Budget Amount *help
¥2,400,000 (Direct Cost: ¥2,400,000)
Fiscal Year 2005: ¥800,000 (Direct Cost: ¥800,000)
Fiscal Year 2004: ¥800,000 (Direct Cost: ¥800,000)
Fiscal Year 2003: ¥800,000 (Direct Cost: ¥800,000)
The following points have been clarified : First, transitional countries, especially Central East European (CEE) countries have actively attracted foreign direct investment (FDI) in order to cover insufficient capitals and introduce advanced technologies and managerial know-how. For that purpose, these countries have endeavored to improve their investment climate. Hungary, in particular, has attained economic development led by foreign capitals.
Second, in this regard an exceptional country is Slovenia, which was one of Republics of the former Yugoslavia. The country gave preference to insiders in the process of privatization of firms, and it has been reluctant to attract FDI. Nevertheless, its economic performance has been better. Seemingly, this is an enigma. Its cautious attitude toward FDI derives from its spirit of independence and self-reliance that Slovenia has firmly maintained in spite of a small country as well as relatively stronger international competitiveness which has sup
ported the spirit. With rapprochement with individual successor countries of the former Yugoslavia in the second half of the 1990s, Slovenia has actively entered markets of the former Yugoslavia. Recently Slovenia is becoming a capital-exporting country.
Third, as a periphery South Eastern Europe (SEE) has something in common with the Russian Far East. SEE has been lagging behind CEE in improvement of infrastructure which supports a market economy. From beginning of the 1990s through 2002 the total amount of FDI inflow in SEE was extremely small, and the total amount has always been about two sevenths and one sixths of that in CEE. In 2003, however, the amount of FDI inflow decreased suddenly in CEE reflecting the almost completion of privatization while FDI inflow increased sharply in SEE reflecting the development of privatization.
Fourth, the West Balkan countries in general have been in unstable situations and their investment climate has been very bad. Exceptionally, however, in Croatia reforms made a great progress in recent years, and the country has been attracting a big amount of FDI inflow. Since 1999 EU has been supporting reforms in the West Balkan countries through ‘Stabilization and Association Process'. Owing to this, the investment climate in these countries is being improved gradually, and the amount of FDI inflow in these countries is increasing. Less