The notional pension capital accrues an interest like in the case of the funded pension scheme however, in contrast to the funded pension scheme where the growth of the capital depends on the return on the investment, the growth of the first tier capital depends on the wage growth in the country.

The growing trend towards South South investment flows would also lead to an increase in South South investment disputes.

Fostering investment and growth

In a situation where you have growth, you put the new money into this.

To be specific, we need to foster growth, based on increased investment.

Private investments, including foreign investments, were the key to sustained growth and employment generation.

Improvements in the business environment as well as increased investment outlays especially in the agri business sector also provided an impetus to growth in non metal exports.

The region's growth indicators were positive the increase in direct foreign investment in 2003 had placed ASEAN among the regions of highest growth in that respect, and the increase was expected to be even bigger in 2004.

Fixed asset investment is the most important engine of China s growth. As a developing country with annual per capita income of less than 5,000, there is still significant room for China to increase its capital stock.

Portfolio flows and foreign direct investment (FDI) posted the strongest growth, accounting for more than two thirds of total private inflows.

Shortfalls in investment eventually diminish growth and employment opportunities. The hard truth is that the flip side of the consumption led growth model that prevailed prior to the crisis has been deficient investment, particularly on the public sector side.

Private investments, including foreign investments, were the key to sustained growth and employment generation.

Investment can sustainably drive growth only up to the point when returns decline dramatically. In the case of public sector investment, that means that the present value of the increment to the future GDP path (using a social discount rate) is greater than the investment itself.

Reducing the budget deficit by limiting government spending and combating a culture of tax avoidance will increase total domestic savings available to invest. Convincing foreign direct investors that India is a reliable destination will increase the inflow of long term funds.

Funding for this strategy increased almost four fold in 2004 2005, for a total investment of  40 million.

Increased public sector investment could help to spur private sector investment, which is also severely depressed. In the United States, investment barely exceeds pre crisis levels, even though GDP has risen by 10 .

The success of the East Asian model was predicated on a sharp increase in the investment rate. Beginning with Japan, every rapidly growing East Asian economy sustained investment rates in the range of 38 40 of GDP over its rapid growth phase.

Only now, investment isn't going to be about the relentless and mindless pursuit of consumption growth.

While the second half of 2005 was already quite good, Ifo expects investment in equipment to grow by a healthy 6 in 2006. After many years of contraction, investment in construction also will rise slightly.

Domestic investments are a critical resource for economic growth and sustainable development.

To be sure, capital accumulation is a driving force of economic growth, and catching up with developed country income levels implies that China must increase its capital stock in the long run. But what is at issue is not the size of the capital stock, or even the level of investment the problem is the growth rate of investment, which has been significantly higher than that of GDP for decades.

This indicates that data on the growth rate of fixed asset investment may have exaggerated the pace of capital stock accumulation. Hence, while the Chinese government should be firm on reducing the dependence of growth on investment, it must exercise utmost care when doing so.

When Chinese growth eventually becomes less dependent on investment, growth rates in steel consumption can be expected to fall sharply.

In the 1930 s, the economist Alvin Hansen argued that opportunities for new investment in already rich countries were drying up. Investment growth had depended on population growth, technological innovation, and westward expansion.

Concurrently, greater investment in infrastructure is also necessary to achieve higher rates of growth.

Many ministers underscored the role of foreign direct investment (FDI) as a source of productive investment and economic growth in developing countries.

Negative OFDI growth was experienced in 1985, 1989, 1998 and 2002.

Creating a positive environment for investment and economic growth

The growth in domestic investments would not only enhance national wealth, but would also spur the demand for foreign capital and technology in an escalating, mutually reinforcing manner that makes investments demand driven.

From reform to growth the private sector and investment as the keys to prosperity

According to preliminary reports, annual investment growth in 2012 reached roughly 14 significantly higher than the GDP growth rate, which accelerated in the fourth quarter as a result of a strong rebound in investment in real estate and infrastructure. In 2013, it can be expected that, barring major disruptions, strong investment growth will push China s GDP more than 8 higher year on year.

Few would argue against China s need for slower but better growth. The problem is that if China wishes to lower the GDP growth rate to 7.5 in 2012, from 9.2 in 2011, without worsening the growth pattern by raising the high investment rate even further, the annual growth rate of investment must be equal to or less than 7.5 .

At the same time, since returns to capital are kept low by high wages, very little investment occurs. The excess of savings over investment flows abroad as capital exports.

Investment growth that surpasses an economy s absorption capacity will lead to a rapid deterioration in the efficiency of investment, which in turn will harm long term growth prospects. Evidence of this in China today is all too prevalent.

On the occasion of being lack of investment growth, the risk of a hard landing of economy in 2020 will rise, they said.

Just as investment in physical capital is necessary to generate economic growth, so too investment in human resources must be recognized not merely as a by product of economic growth but as a driving force for development.

This has resulted in limited financing for investments needed for private sector growth, especially small and medium sized enterprises.

) which is a comprehensive effort to promote economic growth, increase competitiveness, expand and improve social investment and reduce poverty.

Higher rates of economic growth could not be sustained without increased investment, especially in research and development which was crucial to boosting productivity while improving the quality of human capital and technology.

Notwithstanding the growth in the Fund s assets and a complex investment environment, there had been significant improvements in the efficiency and cost effectiveness of investment management.

The current period had been a difficult time for investments in developing markets but over the long term they would also be areas of growth.

However, to the extent that public investment grows, aggregate demand increases correspondingly, generating some growth and creating a cushion against recession.

This increase is related mainly to inflows into developing

Developing countries, once they enter rapid growth mode, generate growth from capital deepening via investment, in a sense making up for past underinvestment. And it is possible for advanced countries to fall behind by under investing, particularly in the public sector, relying instead on less sustainable debt fueled means of generating demand.

How could it grow at 2,300 percent a year in 1994 when people weren't really investing in the Web?