THE COUNCIL,
HAVING REGARD to Article 5 b) of the Convention on the Organisation for Economic Co-operation and Development (OECD) of 14 December 1960;
HAVING REGARD to the standards developed by the OECD in the area of statistical practice;
CONSIDERING that improvements have been achieved in the comparability of data collected on foreign direct investment since the first publication of the Benchmark Definition of Foreign Direct Investment (FDI) in 1983 but that however divergences still exist between domestic methodologies and the methodology of the Benchmark;
RECOGNISING the desirability of ensuring that the methodology of the Benchmark Definition of FDI continues to reflect the reality of foreign direct investment transactions in a globalising world economy.
On the proposal of the Investment Committee:
I. RECOMMENDS that Members and non-Members having adhered to this Recommendation (hereafter the “Adherents”) continue to take steps to bring their statistical methodology in line with the Benchmark Definition of FDI as set out in the Appendix, and to consider 2029 as a target year for its full implementation, thereby providing a comparable and reliable basis for users of foreign direct investment statistics.
II. RECOMMENDS that Adherents actively co-operate internationally on foreign direct investment statistics. To this effect, Adherents should:
(i) reinforce co-operation among them on the compilation of FDI statistics, including co-operation on sharing methodologies, national activities and good practices related to FDI statistics that would improve the comparability of data and collection systems; and
(ii) co-operate with non-Adherents to strengthen their capacity for the collection and compilation of FDI statistics and their communication.
III. RECOMMENDS that Adherents provide statistical information to the OECD in order to support its work in this area. To this effect, Adherents should:
(i) provide national FDI statistics so as to contribute to maintaining a set of comparable and reliable FDI data; and
(ii) provide periodic reports and information on the implementation of the Benchmark Definition, so as to enable monitoring of progress, including by completing the Survey of Implementation of Methodological Standards for Direct Investment and providing updated information when needed.
IV. INVITES the Secretary-General and Adherents to disseminate this Recommendation.
V. INVITES non-Adherents to take account of and to adhere to this Recommendation subject to a review by the Working Group on International Investment Statistics (WGIIS).
VI. ENCOURAGES national central banks, national statistics offices, and other official national compilers of foreign direct investment statistics to promote and follow this Recommendation.
VII. INSTRUCTS the Investment Committee, through the WGIIS, to:
a) Serve as a forum to exchange information, good practices and innovative experiences with respect to the implementation of this Recommendation, including by:
(i) Taking steps for the harmonisation of FDI statistics to respond to the needs of the analysis of the global economy; and
(ii) keeping abreast of new developments impacting statistical methodologies, including issues indicated in Annex D of the Benchmark Definition.
b) Support and facilitate Adherents’ efforts to implement this Recommendation, in co-operation with other relevant international organisations and stakeholders, including through:
(i) collecting and publishing at regular intervals stock and flow data of inward and outward foreign direct investment;
(ii) preparing accompanying methodological notes in light of the results of the Survey of Implementation of Methodological Standards for Direct Investment;
(iii) documenting areas where the methodology used by Adherents differs from the Benchmark Definition.
c) Report to Council on the implementation, dissemination and continued relevance of this Recommendation no later than five years following its revision and at least every ten years thereafter.
APPENDIX