governmental efforts in an efficient manner. Streamlining the registration of companies and facilitating the entry of foreign capital can be further assisted through the
development of integrated institutions (“one-stop shops”) and the ability to provide
faster feedback on investment proposals.
However, we should note that despite the possible benefits of regional integration,
liberalization and deregulation for attaining various SDGs and individual targets,
they also pose many risks. This especially true in countries lacking a strong
institutional capacity to undertake or engage effectively in such processes. In this
sense, there is a need to have in place robust policy frameworks and capacity to
navigate such processes (e.g. policies able to recognize market distortions timely and
avoid any possible negative socioeconomic and environmental justice impacts).
Labour rights, equality of opportunity and the recognition of environmental and
social limits are only some of the aspects that should be considered/reflected in such
policy frameworks in order to reduce to the extent possible any of the negative
sustainability outcomes of broader regional integration, liberalization and deregulation processes, especially for vulnerable social groups.
5.5 Conclusions
By combining secondary data analysis and literature review, this chapter identified
(a) the SDGs mainly targeted by ODA in Africa; (b) the research priorities related to
the SDGs in Africa; (c) the factors that attract or drive away FDI and ODA in Africa.
We systematized this information using conceptual mapping and social network
analysis.
For (a) and (b), our results suggest that ODA flows seem to be equally distributed
throughout the continent. Countries with functional democracies, high poverty and a
colonial past have a higher chance in attracting ODA. However, there is a mismatch
between academic research priorities related to the SDGs and actual SDGs targeted
by ODA flows in Africa. Academic studies seem to focus more on SDGs1, 5 and
13, while ODA flows target interventions more related to SDGs 2, 11 and 16. This
poses a potential risk for the effective allocation of ODA, as it implies a lack of
robust academic research to inform those mechanisms seeking to enhance ODA
effectiveness for meeting the SDGs in Africa.
For (c), we identified a series of push and pull factors that respectively drive FDI
and ODA flows from developed to developing countries or are internal characteristics of developed countries that influence the attraction of FDI and ODA. Some of
the factors having a positive influence include economic stability, robust legal
systems, functional democratic systems, conducive and open business environments, functional infrastructure and market integration. The availability of natural
resources and the size of the targeted markets are also advantages boosting the
possibility of attracting FDIs. On the other hand, the quality and legitimacy of
donor intentions also positively or negatively influence ODA acquisition. For
5 Determinants of Foreign Investment and International Aid for Meeting the. . .
183
development of integrated institutions (“one-stop shops”) and the ability to provide
faster feedback on investment proposals.
However, we should note that despite the possible benefits of regional integration,
liberalization and deregulation for attaining various SDGs and individual targets,
they also pose many risks. This especially true in countries lacking a strong
institutional capacity to undertake or engage effectively in such processes. In this
sense, there is a need to have in place robust policy frameworks and capacity to
navigate such processes (e.g. policies able to recognize market distortions timely and
avoid any possible negative socioeconomic and environmental justice impacts).
Labour rights, equality of opportunity and the recognition of environmental and
social limits are only some of the aspects that should be considered/reflected in such
policy frameworks in order to reduce to the extent possible any of the negative
sustainability outcomes of broader regional integration, liberalization and deregulation processes, especially for vulnerable social groups.
5.5 Conclusions
By combining secondary data analysis and literature review, this chapter identified
(a) the SDGs mainly targeted by ODA in Africa; (b) the research priorities related to
the SDGs in Africa; (c) the factors that attract or drive away FDI and ODA in Africa.
We systematized this information using conceptual mapping and social network
analysis.
For (a) and (b), our results suggest that ODA flows seem to be equally distributed
throughout the continent. Countries with functional democracies, high poverty and a
colonial past have a higher chance in attracting ODA. However, there is a mismatch
between academic research priorities related to the SDGs and actual SDGs targeted
by ODA flows in Africa. Academic studies seem to focus more on SDGs1, 5 and
13, while ODA flows target interventions more related to SDGs 2, 11 and 16. This
poses a potential risk for the effective allocation of ODA, as it implies a lack of
robust academic research to inform those mechanisms seeking to enhance ODA
effectiveness for meeting the SDGs in Africa.
For (c), we identified a series of push and pull factors that respectively drive FDI
and ODA flows from developed to developing countries or are internal characteristics of developed countries that influence the attraction of FDI and ODA. Some of
the factors having a positive influence include economic stability, robust legal
systems, functional democratic systems, conducive and open business environments, functional infrastructure and market integration. The availability of natural
resources and the size of the targeted markets are also advantages boosting the
possibility of attracting FDIs. On the other hand, the quality and legitimacy of
donor intentions also positively or negatively influence ODA acquisition. For
5 Determinants of Foreign Investment and International Aid for Meeting the. . .
183