Investment of knowledge in developing Countries

The more recently evolved approach to development emphasises that growth “per se” is not enough, despite being a sine-qua-non condition. This is because development also depends on the quality of factors and mutual linkages, not only of a tangible nature, such as capital investment, but also on intangible factors that comprise an integral part of the “social capital” of the society, such as institutional capability, cumulated knowledge and all of the elements that contribute to a favourable business environment: a pro-business and effective legal framework, private-public partnership, co-operation, networking, and innovation capacity. Behind this new approach to development there is a changed understanding of the process of world economic integration and the contribution of inward capital investment to growth.

The contribution of foreign investments to economic growth can be highly relevant, but its actual effects depend on a multiplicity of factors that are related to both: (i) the quality and scope of the inward investments; (ii) the domestic conditions conducive to investment in the host country Within this context, the International MTM Directorate is supporting the growth of new MTM Associations in emerging Countries, in order to guarantee a solid source of industrial knowledge to those industries searching for attractive labor markets.

In 2004, for example, thanks to the support of the main global players in the automotive sector, the IMD has 3 new members: Czech Republic MTM Association, Polskie Stowarzyszenie MTM and Associacao MTM do Brasil and two chapters: Malaysia, chapter of the UK MTM Association and Portugal, chapter of the German MTM Association. At the moment there is also a very important IMD initiative aiming at the establishment of a new MTM association in China. By the end of 2004 Chinese MTM training manuals and examination papers will be available to launch qualification programs in local language.