INTERNATIONAL INVESTMENTS IN THE NATIONAL ECONOMIC RESILIENCE SYSTEM

Abstract

In the last three decades international production and promotion of investment in export-oriented manufacturing industries served as a pillar of development and industrialization strategies of most countries. Investments aimed at the use of factors of production, resources and cheap labor retain their importance until now, but the opportunities for attracting such investments are narrowing. It requires rebalancing towards growth based on domestic and regional demand and services.
Concepts of resilience continue to be associated with crisis or disaster risk mitigation and response. In other words, resilience is how communities respond to stresses and disasters, but it goes beyond simple disaster risk management. Traditionally, these are natural or man-made disasters, but in the globalized dimension, they must include many more factors. Given the events of the 21st century, stresses should include economic shocks such as the global financial crisis and the rise in food prices that occurred in 2007-2008, and the COVID-2019 pandemic, which shook the whole world, is no exception. These events tested the resilience of both developed and developing countries. However, in addition to the increasing capacity of countries to withstand natural disasters and conflicts, developing countries are increasingly able to withstand economic and financial shocks. Building resilient systems is particularly important in conflict-affected and fragile states. In order to ensure sustainability in these countries, the following factors are decisive: speed of occurrence of destabilizing problems; the political will of the government to mitigate the economic consequences of the existing problems; the interest of the community in the development of new social systems without problems. In these cases, grassroots nation-building is needed to create or strengthen resilience.
Even in conflict situations, resilience is built through the programs of donors and local authorities. Sustainability is an important aspect of achieving long-term, broad based economic growth in developing countries. Without strengthening individual components of ensuring sustainability, the investments of donors and local authorities risk being short-term and not achieving the main goal – eliminating the main causes and consequences of stress, conflicts and upheavals. To achieve success, it is necessary to strengthen sustainability across the spectrum of programs and projects. The success of various programs and projects lies in understanding the dynamics in various societies, on the basis of which sustainability strategies are created.