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Communication from the Republic of Hungary - The Need for a Multilateral Framework for FDI - The Hungarian Experience
World Trade Organization WT/WGTI/W/83 7 June 2000 (00-2257) Working Group on the Relationship between Trade and Investment Original: English the need for a multilateral framework for fdi the hungarian experience Communication from the Republic of Hungary The following communication, dated 7 June 2000, has been received from the Permanent Mission of the Republic of Hungary. _______________ At the outset When Hungary, approximately a decade ago, embarked upon the process of economic transition the country faced a complex and intricate set of grave, interrelated economic difficulties. Perhaps most importantly the structure of the economy was not only distorted but also lacked the needed mechanism for structural adjustments. The strong bias towards heavy industry did not reflect the country’s natural endowments and comparative advantages. The financial sector was underdeveloped and largely passive. The basic infrastructure, including telecomm