Measuring Unilever™s Economic Footprint in South Africa
Measuring Unilever™s Economic Footprint in South Africa Measuring Unilever™s Economic Footprint in South Africa
Agenda g Does FDI promote development? g The South Africa context g Report Methodology g Key Findings g Issues for Management g Implications for Research and Policy
Does FDI Promote Development? g g g Traditional Economic View: FDI plays two roles in developing countries: (1) fills the gap between local Savings and Investment requirements; (2) brings technology (inc. human capital): result is more economic growth. Thus, one objective of World Bank is “to promote private foreign investment” (IBRD Articles of Agreement). Economists also argued that, by operating at a bigger scale than domestic industry, FDI could help “lift up” an economy. Other benefits of FDI included provision of “public goods”: g Technology transfer to local suppliers g Financing of local suppliers (filling financial “gaps”) g Transfer of business & management skills directly to suppliers and indirectly as managers left for domestic firms
- Page 1: Measuring Unilever’s Economic Foo
- Page 5 and 6: The South African context g g g g R
- Page 7 and 8: Unilever South Africa’s main bran
- Page 9 and 10: Measuring ULSA’s Economic Footpri
- Page 11 and 12: Who Profits from Unilever Sales? 20
- Page 13 and 14: Unilever’s Impact on Balance of P
- Page 15 and 16: Jobs by race 70,000 60,000 50,000 4
- Page 17 and 18: Jobs vs. income 40 % 30 20 10 0 Hig
- Page 19 and 20: BEE elements Element Equity Managem
- Page 21 and 22: Unilever’s Corporate sociaI inves
- Page 23 and 24: Unilever’s emissions in S Africa
- Page 25: And for the future... g g g g Gener
Does FDI Promote Development?<br />
g<br />
g<br />
g<br />
Traditional <strong>Economic</strong> View: FDI plays two roles <strong>in</strong> develop<strong>in</strong>g<br />
countries: (1) fills the gap between local Sav<strong>in</strong>gs and<br />
Investment requirements; (2) br<strong>in</strong>gs technology (<strong>in</strong>c. human<br />
capital): result is more economic growth. Thus, one objective<br />
of World Bank is “to promote private foreign <strong>in</strong>vestment” (IBRD<br />
Articles of Agreement).<br />
Economists also argued that, by operat<strong>in</strong>g at a bigger scale<br />
than domestic <strong>in</strong>dustry, FDI could help “lift up” an economy.<br />
Other benefits of FDI <strong>in</strong>cluded provision of “public goods”:<br />
g Technology transfer to local suppliers<br />
g F<strong>in</strong>anc<strong>in</strong>g of local suppliers (fill<strong>in</strong>g f<strong>in</strong>ancial “gaps”)<br />
g Transfer of bus<strong>in</strong>ess & management skills directly to<br />
suppliers and <strong>in</strong>directly as managers left for domestic<br />
firms
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