Bringing jobs back to America requires a comprehensive economic plan. Encouraging investment in America is a core part of that plan, a key driver to bringing jobs back to America, especially within the manufacturing sector which represents the largest share of foreign direct investment stock. According to AT Kearney’s Foreign Direct Investment Confidence Index, confidence in the U.S. as a location for FDI is high, ranking as the top destination for investment ahead of China, Brazil, Canada, and India.1 The U.S. remains the world’s largest economy and is also the largest recipient of foreign direct investment in the world. Over the last ten years, U.S. affiliates of foreign companies have employed more than five million workers, the majority of which are high-paying manufacturing jobs. On average, jobs created by FDI in United States pay up to 30% more.2 However, due to global capital mobility and increased foreign competition, we need to take steps to maintain and grow our share of global investment.
Historically, we have left our states and cities to compete for investments with a country’s investment promotion agency, limiting our opportunities to clearly demonstrate our commitment to attracting investment and to leverage our advantages as a top destination for investment. In 2011, through Executive Order, the U.S. launched SelectUSA, the first Federal effort to promote and facilitate inbound business investment. The E.O. created the Interagency Investment Working Group (IIWG) to further design and implement the first-ever coordinated U.S. investment promotion authority. As a driver for success, the global investment team, consisting of both SelectUSA headquarters in DC and investment teams at posts led by Ambassadors, will increase the number of active investment cases touched to encourage business investments.
At the first SelectUSA Investment Summit in Oct 31-Nov. 1 2013, the President reformed SelectUSA, creating a number of firsts: for the first time there will be a clear system for advocacy for high-priority, job-creating investments, driven by the most senior Administration officials all the way up to the President; for the first time there will be a single point of contact for ready investors looking to bring jobs and production to the U.S.; lastly, the Administration is engaging in unprecedented coordinated support for states and localities to attract investment.
Key contributing agencies to the Job-Creating Investment CAP goal include the Department of Commerce, Small Business Administration, US Department of Agriculture, Department of State, Department of Homeland Security, and Export-Import Bank of the U.S.
1 THE 2013 A.T. Kearney Foreign Direct Investment Confidence Index. Back to Business: Optimism Amid Uncertainty.
2 http://www.esa.doc.gov/sites/default/files/reports/documents/fdiesaissuebriefno2061411final.pdf
