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Preface: HUMAN CAPITAL FORMATION AND FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES
The main theme for the programme of work 2001-2002 at the Development Centre was Globalisation and Governance. Multinational enterprises (MNEs) are a key actor of globalisation and also raise numerous governance issues. Accordingly, their role in poor countries has always interested the development community

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2.1 The cruel dilemma of school or work: Working Out of Poverty
The education and preparation for working life of the current generation of children are of key importance to the drive to reduce and eradicate extreme poverty. Access to basic education has improved in a large number of countries, but the poor have benefited much less than those who are better off. Over 115 million school-age children, mainly in low-income countries, were not in school in 1999; 56 per cent of them were girls. On current trends, a large number of South and West Asian and African countries are unlikely to achieve the Millennium Development Goal of ensuring that all children complete a full course of primary education by 2015.
Market access: Provisions of Agreement on Agriculture
An often-mentioned problem of developing countries’ agricultural export has been the lack of access to developed countries' markets, due to the institution of a myriad of import controls and other restrictions. This has largely undermined the growth prospects of developing countries whose development strategy relied on agricultural exports.
Domestic farm support programs in developed countries: Provisions of Agreement on Agriculture
A basic source of distortion in the world market for agricultural commodities and primary products has been the differential level of domestic support that developed and developing countries can give to the production of these commodities. This has tended to reduce the price competitiveness of developing countries.
Export Subsidies by Developed Countries: Barriers to African External Trade
While advocates of liberalization in the economies of the developing countries have called for reduction in subsidies, the high levels of subsidies in developed countries have increased significantly especially in the OECD countries.
Effects of education upon health and nutrition: The Indirect Effects of Investment in Human Capital
One indirect effect of expenditure on education may be its effects on health. Within developing countries, the children of educated parents face lower risks of premature death.
Conclusion: Human Capital and Economic Development
Africa has made large strides in raising literacy and school enrolments and improving health. However, in the case of both education and health these gains are lower than those in other developing countries.
Trends in Human Capital Formation in Developing Countries: Background
The level of human capital in developing countries has on average improved over the past three decades, owing to enhanced government commitments in formal education and vocational training as well as increased incentives of firms to provide enterprise training.
Policies to Develop Human Resources
Now that the importance of human capital in attracting FDI is understood, the next question is: what are the past HRD policy experiences of host developing countries that have strived to attract inward FDI? This section focuses on formal education policies to attract FDI. While vocational training policies also help improve human resources of host developing countries, they are likely to be more important after some influx of FDI into the economy.
Human Capital Formation by MNEs: Supporting Formal Education
While training is no doubt the major source of HRD activities undertaken by the MNEs, they can also contribute to the HRD of host developing countries by mobilising formal education. One of the MNEs that has invested substantially in formal education is Intel. They have invested in curriculum, educational equipment, infrastructure and technical support to almost all countries where they have production facilities, including Argentina, Brazil, Costa Rica, China, Malaysia, South Korea, India, Russia, Poland, Ireland and South Africa.
Preface - E-COMMERCE FOR DEVELOPMENT: PROSPECTS AND POLICY ISSUES
The OECD has been a pioneer in addressing the challenges and opportunities of electronic commerce and the digital economy in the industrialised countries. It is natural then that the Development Centre should assess the scope for e-commerce in developing countries. But like the sailors in the strait of Messina, the research should avoid at once the scylla of technological pessimism — seeing an inevitably widening “digital divide” between industrialised and developing countries — and the charybdis of exaggerated claims about the Internet’s potential to resolve a host of development problems that have heretofore proved intractable.
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