Shaheryar Ali Cheema

For centuries, foreign capital has been viewed negatively. Governments all over the world have indulged in propaganda that calls foreign capital a tool for enslavement of the people. The governments that did this propaganda had hidden agendas. They did not want to pay the debt that was incurred by their predecessors. The socialist government in Russia was a prominent example. They felt no obligation to pay back the debt incurred by their Tsarist predecessors and hence simply decided to confiscate the capital. The common knowledge related to foreign capital is therefore riddled with such misinformation. Foreign capital is in fact one of the best ways for developing countries to break the cycle of poverty and move forward in the economic realm. In this article, we will discuss some of the major advantages of foreign direct investment.