Introduction [a Institutional Capacity Building and FDI in Peru]

The aim of the book is to furnish some policy suggestions about the direction that institutional capacity building oriented policies should take in development countries in general, and in the context of Latin America in particular. Our policy suggestions are based on both a rigorous review of modern theories on FDI and practical case studies drawn from the Peruvian experience of different sectors (agro-industry, electricity, hydrocarbons, mining, textiles and clothing, agriculture, fisheries, telecommunications and tourism). The book is divided into three parts. The first part of the book analyzes the modern theoy of FDI, exploring their determinants and their potential effects on the local economies. In the second part of the book, we concentrate our attention on the case of Peru. Through the presentation of official information and of the results of questionnaires completed by sectoral experts and top staff of governmental organizations, multinational and local companies, we analyze the sector's potentialities, market structures and companies' strategies, along with aspects of foreign direct investment related to human capital, sectoral institutionality and corporate social responsibility. The third and last part of the book presents the policy suggestions and institution building actions aimed at creating an enabling environment to foster interactions between local and foreign firms and international institutions. Those conclusions are drawn looking principally at the experience of Peru; nevertheless they can be easily extended to other countries in Latin America, especially to those more similar to Peru as the countries of the Andean region.