Variations in the impact of TNC involvement on investment, by industry, region and country. As mentioned earlier, investments by TNCs in infrastructure projects in developing countries amounted to $246 billion during the period 1996– 2006, or an average of 28.5% of total investment commitments (figure III.1).
This share indicates an appreciable contribution by TNCs to infrastructure investment in developing countries, as a whole. Differences exist in the degree of TNCs impact on the level of investments by industry, region and country, judging from the variations in the shares of TNCs in total private sector infrastructure investment commitments (or PPI investment commitments).
By infrastructure industry, TNCs shares in PPI investment commitments during the period 1996- 2006, were highest in telecommunications (35.2%) and electricity (30.0%), and lowest in water (25.2%) and transport (19.3%) (figure III.1).
Apart from this, according to the World Bank's PPI database, other notable variations included:
(I) a significant drop in the share of TNCs in energy investments in South Asia between 1996-2000 and 2001-2006, primarily reflecting difficulties faced by India in realizing its strategy towards attracting infrastructure TNCs;
(II) a decline in TNC participation in the telecommunications industry in East Asia and South-East Asia and Latin America and the Caribbean during the period 2001- 2006, reflecting the growing strength of domestic companies in these regions (section III.C);
(III) very large swings in TNC investment commitments in transport in nearly all regions between 1996–2000 and 2001-2006, possibly reflecting developments in a number of the sub industries involved; and
(IV) increases in TNCs share in overall private investment commitments in water in some regions and subregions between 1996-2000 and 2001-2006, reflecting the efforts of countries to improve access to safe, clean water for their populations.
Regionally, the share of TNCs in total PPI commitments ranged from 19.8% in Asia in 1996- 2006 (with the lowest share in South Asia and highest in West Asia) to 35.5% in Africa and 33.3% in Latin America and the Caribbean. The variation in the share of TNCs in PPI investment commitments during the period 1996-2006 was even greater by country, with 75% of economies (out of 105 for which data are available) indicating a share above the overall average of 28.5% (table IV.1).
The overall average share is low because a number of countries with large total investment commitments have below average figures for the share of TNCs in these commitments, including Brazil, China, India, Malaysia, Mexico and South Africa.
In a large number of countries the share of TNCs in total PPI investment commitments is significant: between 28% and 50%; and in a number of them the share is even higher, in the 50%-75% range (table IV.1). Furthermore, for nearly one fifth of countries (20) TNCs share in total private sector investment commitments is 75% or more.
This group includes 13 LDCs, among them Burundi, Chad, Guinea Bissau, Haiti, Maldives, Samoa and Sudan. Their high share of TNC participation implies that for many LDCs TNCs are more or less the private infrastructure sector.