Another correction to the Washington Consensus: FDI

Among the different recommendations (~impositions) compiled in the Washington Consensus (WC, from now on), one called for the liberalization of inflows of Foreign Direct Investment. In a recent book (Harnessing Foreign Direct Investment: Policies for Developed and Developing Countries) edited by the Center for Global Development, Theodore H. Moran questions and analyses the impact that this "recommended policy" has had not only in developing countries but also in developed countries (both in terms of efficiency and competition). He divides his analysis into three different sectors: extractive industries, infrastructure and manufacturing and assembly.

He concludes that not every FDI is good for recipient countries (that is, it doesn't bring attached the desired transfer of capital and know-how). To avoid this, the author claims for more transparency, for the development of new business deals that diminishes the investment risks and proper labour regulation.

By the way, why don't developed countries liberalise the remittances sector?

NB: the implementation of the policy recommendations gathered around the WC (and its consequences) was not only because of the persuasiveness of developed countries, but also because of the myopic view of the governments in developing countries!