[1] G.T. Nankani, The Intercountry Distribution of Direct Foreign Investment in Manufacturing, (New York & London: Garland Publishing, Inc. 1979), p.1; For a discussion of advantages of foreign direct investment see below; see also C.P. Kindleberger, "Less Developed Countries and the International Capital Market" in J.W. Markham and G.F. Papanek (eds.), Industrial Organisation and Economic Development, (New York: Houghton Mifflin Company, 1970) p. 341.
[2] Investment Act 1993, section 5(1).
[3] Ibid., section 5(2)(b).
[4] Ibid., section 5(2).
[5] Ibid., section 5(2)(i)(j).
[6] Ibid., section 7(2).
[7] Such as any industry manufacturing arms and ammunition, explosives, military vehicles and equipment, aircraft and any other military hardware. Also covered under the Second Schedule to the Investment Act 1993 are industries manufacturing poisons, narcotics, dangerous drugs and toxic, hazardous and carcinogenic materials and industries producing currency, coins and security documents.
[8] Investment Act 1993, section 8.
[9] Ibid., section 11.
[10] Ibid., sections 15 and 17.
[11] Ibid., section 13(1).
[12] See E.I. Nwogugu, The Legal Problems of Foreign Investment in Developing Countries, (Manchester: Manchester University Press, 1965), pp. 9-10; G. Schwarzenberger, Foreign Investment and International Law, (London: Stevens & Sons, 1969), pp. 3-11.
[13] E.I. Nwogugu, op. cit., p.10.
[14] See the statement of the Ghanaian President, October, 1960, "Foreign Capital and Ghana Economic Policy" (Handbook of Commerce and Industry, Accra, 1960 - Folder) and the Opening address of the Prime Minister of Ceylon at the 10th Session of E.C.A.F.E., in Ibid., p.9.
[15] See Preamble of the Investment Act 1993 of Zambia.
[16] Ibid.
[17] Ibid.
[18] Ibid., sections 20, 21 and 22(1), (2), (3).
[19] A.N.L. Wina, Daily Parliamentary Debates, Thursday 29th July 1993, p. 560 (At the time of this contribution, Mr. A. Wina was Minister of Higher Education in Zambia).
[20] Investment Act 1993, section 23.
[21] Ibid., section 24.
[22] Ibid., section 25.
[23] Ibid., section 31.
[24] See J.H. Dunning, Studies in International Investment, (London: George Allen & Unwin Ltd., 1970), pp. 6-10; E.I. Nwogugu, op. cit., p. 9; Organisation for European Economic Co-operation, Report on International Investment, (Paris: OEEC, 1950), pp. 31-34.
[25] A.F. Lowenferd, "Obstacles and Incentives", in F.E. Nattier (ed.), Investment in Developing Countries, (New York: Practising Law Institute, 1972) pp. 17-18.
[26] See generally G.B. Stanford and J.B. Christensen, Tax Incentives for Industry in Mexico, (Cambridge: 1959).
[27] P.A.C. Young, "A study of Tax Incentives In Jamaica", National Tax Journal, (1967), p. 298.
[28] C. Chi, A Treatise on Alien Direct Investments, in T.K. Mabula, The Effectiveness of Fiscal Incentives under the Industrial Development Act 1977, (Boston: Harvard University, unpublished LL.M dissertation, 1981), n.50.
[29] See H. Hughes and Y.P. Seng (eds.), Foreign Investment and Industrialisation in Singapore, (Camberra: Australia National University Press, 1973), pp. 10-25.
[30] This Act has since been repealed.
[31] A. Martin, Minding Their Own Business, (London: Penguin Books, 1975), p.65.
[32] Y. Aharoni, The Foreign Investment Decision Process, (Cambridge: Harvard University, 1966), p.169.
[33] IBRD, Private Foreign Direct Investment in Developing Countries, (Working Paper No. 149: 1973), p. 9.
[34] See generally texts on corporate strategy e.g. G. Johnson and K. Scholes, Exploring Corporate Strategy: Text and Cases, (New York: Prentice Hall, 1993).
[35] Ibid.
[36] See UN Economic Commission for Europe, Factors of Growth and Investment Policies : An International Approach, (Oxford: Pergamon, 1978), pp. 82-84.
[37] P. Dickens, Global Shift: The Internationalisation of Economic Activity, (London: Paul Chapman Ltd., 1992), p. 392.
[38] Interview with T.C. Bwalya, Director of Loans and Investment Department, National Commission for Development Planning, Ministry of Finance, Lusaka, 14th February, 1992.
[39] Ministry of Finance, Fourth National Development Plan 1989-1993, (Lusaka: Government Printers, 1989), p. 541.
[40] Investment Act 1986, sections 36(1) and 37(2).
[41] See also Ghana's Investment Promotions Center Act 1994. This statute is not analysed here since Zambia's Investment Act 1986 bears much more resemblance to the 1985 Investment Code of Ghana.
[42] See for example P. Dicken, op. cit., pp. 391-395.
[43] For an elaborate discussion see H.C. Bos, M. Snaders and C.Secchi, Private Foreign Investment in Developing Countries, (Dordrecht: D. Reidel Ltd., 1974), pp. 36-37.
[44] See P. Dickens, op cit., pp. 391-395.
[45] UN Economic Commission for Europe, op. cit., p. 81.
[46] See L.G. Reynolds, "Is 'Development Economics' a Subject?" in J.W. Markham et al, op. cit., pp. 321-322.
[47] See R.N. Anthony and V. Govindarajan, Management Control Systems, (Chicago: Irwin, 1995), p. 181.
[48] See for example, P. Dicken, op. cit., pp. 390-391.
[49] R.N. Anthony and V. Govindarajan, op cit., p. 181.
[50] R.S. Kaplan and A.A. Atkinson, Advanced Management Accounting, (Englewood Cliffs: Prentice Hall, 1989), p. 538.
[51] R.N. Anthony and V. Govindarajan, op. cit., p. 182.
[52] This point is raised by Anthony and Govindarajan in Ibid. They observe that there is much disagreement as to how outside selling prices are established and that consequently, few companies follow the fundamental principle of transfer pricing.
[53] P. Dicken, op. cit., pp. 390-391.
[54] See Ibid.
[55] For case studies see above.
[56] See R.S. Kaplan and A.A. Atkinson, op. cit., p. 538.
[57] See Part II of the Investment Act 1993.
[58] The Economist, (July 1st - 7th 1995), Vol. 336, No. 7921, pp. 54-54.
[59] P. Dickens, op. cit., p. 409
[60] See R.J. Briston, "Accounting Standards and Host Country Control of Multinationals", British Accounting Review, Vol. 16, No. 1, Spring 1984, at p. 15.
[61] P. Dickens, op. cit., pp. 407-408.
[62] See R.J. Briston, op. cit., p. 15.
[63] For a detailed examination of systems thinking see R.K. Ellis, "Critical Considerations in the Development of Systems Thinking and Practice", Systems Practice, Vol. 8, No. 2, April 1995, pp. 199-214.
[64] See generally J. Clark and C. Allison, Debt and Poverty, (Oxford: Oxfam, 1989).
[65] It is a notorious fact that countries such as Kenya have experienced massive violations of human rights in their political transition to multi-party politics. Similarly, in Nigeria the president-elect M. Abiola, who was supposed to take over office from the military government of General Babanginda, was placed under detention until he died. There were some social upheavals in Lesotho too before multi-party politics were re-introduced.
[66] Investment Act 1993, section 35. This Act adopts the position in international law on nationalisation. Paragraph four of Resolution 1803 (XVII) of the United Nations on Permanent Sovereignty Over Natural Resources provides in part: "... expropriation ... shall be based on grounds or reasons of public utility, security or the national interest which are recognised as over-riding purely individual and private interest, both domestic and foreign. In such cases the owner shall be paid appropriate compensation, in accordance with rules in force in the State taking such measures ... and in accordance with international law."
[67] Ibid., section 36.
[68] See generally J.C. Clark and C. Allison, op. cit.
[69] The Economist, op. cit., p. 55.
[70] See generally J.C. Clark and C. Allison, op. cit.
[71] For a detailed understanding of the term see C. Handy, Understanding Organisations, (London: Penguin Books, 1993), pp. 145, 186, 195-197, 201-208, 210-216, 330-331 and 405; see also R.L. Flood, Beyond TQM, (Chichester: John Wiley & Sons, 1993), pp. 118-123.
[72] See United Nations, Statistical Yearbook, Thirty-ninth issue, (New York: United Nations, 1994).
[73] See Economist, Vol. 332, Issue 7872, July 16th 1994, p. 38.