For resource-rich countries, transparency in the extractive industries, especially during contract negotiations, is pivotal in ensuring that economic activities by multinational enterprises are taxed appropriately.
Natural resource-rich countries continued to dominate in FDI inflows, with oil exporters capturing over 65 per cent of the annual FDI inflows to the region between 2002 and 2004.
Resource-rich countries continued to account for the largest share of these flows, with the Democratic Republic of the Congo, Equatorial Guinea, Mozambique, Myanmar and the Sudan attracting over $2 billion each.
Over 50 per cent of total external flows to the continent are received by only five resource-rich countries-- Nigeria, South Africa, Egypt, Morocco and the Democratic Republic of the Congo.
The resource-rich countries, particularly in the CIS region, are currently benefiting from high commodity prices, but their growth performance remains vulnerable to the volatility in world commodity prices.
Pacific small island developing States are also diverse, including more populous, resource-rich countries in Melanesia and remote atolls of Micronesia with expansive exclusive economic zones.
While FDI inflows go mainly to resource-rich countriesto finance investment in extractive industry, more ODA flows are directed to non-oil economies(table 3).
Recent increases in aid flows to Africa were largely due to the debt relief delivered to a select group of countries, while FDI inflows were concentrated in resource-rich countries.
Under the thematic area of poverty reduction through productive activities, UNIDO intends to actively support the transition towards a private-sector-led diversification of the economy, especially in the resource-rich countries ofthe region.
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