Michèle Ferenz, Stan Byers, and David Fairman with assistance from Professor Lawrence SusskindA facilitated multi-party negotiation among government officials regarding the design of a foreign direct investment strategy that balances economic, societal, and environmental concerns
This exercise is designed to serve as a concrete basis for discussion of the choices faced by developing countries in designing a foreign direct investment strategy. It highlights the obstacles and opportunities presented by the imperative to integrate – and strike a balance among – the three pillars of sustainable development: economy, society, and environment.
The hypothetical nation of Mandoa faces many challenges typical of developing countries today: an economy based largely on the export of agricultural products affected by declining terms of trade, rural poverty leading to mass migration to urban areas, an impending health crisis related to the spread of HIV/AIDS, and environmental deterioration. A large multinational corporation, ACOM, is proposing to invest in two large projects: an aluminum smelting plant located in Mandoa’s capital, Chimbesi, and an inland dam that will provide sufficient energy to the industrial complex as well as other users. Mandoa’s government needs to make a decision as to whether and under what conditions and constraints, if any, it will allow ACOM to operate.
The exercise is conducted in groups of seven, including two Ministers of Trade and Industry, two Ministers of the Environment, two Ministers of Social Development, and a Prime Minister who facilitates the discussion and makes the ultimate decision regarding the terms and conditions of any foreign direct investment.
Potential debriefing topics include consensus-building techniques within a political context, the role of the facilitator/decisionmaker, and the tensions between more efficient vs. more inclusive decisionmaking.
For all parties:
- General Instructions
Confidential Instructions for:
- The Minister of Trade and Industry (including the ICC Business Charter for Sustainable Development)
- The Minister of the Environment (including the Dow Jones Sustainability Group Index)
- The Minister of Social Development (including the OECD Guidelines for Multinational Enterprises)
Teacher’s package includes:
- All of the above
- Teaching note
Foreign Direct Investment in Mandoa Attributes
- Time required:
- 2-3 hours
- Number of participants:
- Teams involved:
- Agent present:
- Neutral third party present:
- Teaching notes available:
Soft copy vs. hard copy
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Ordering copies for multiple participants
If you wish to order multiple copies of a role simulation for use in a course or workshop, simply enter the total number of participants in the box next to “Participant Copies.” There is no need to calculate how many of each role is required; the Teaching Negotiation Resource Center will calculate the appropriate numbers of each role to provide, based on the total number of participants. For example, if you wish to order a 2-party role simulation for use with a class of 30 students, you would enter “30” in the box next to “Participant Copies.” You then would receive 15 copies of one role and 15 copies of the other role, for use with your 30 participants. As another example, if you ordered 30 participant copies of a 6-party role simulation, you would receive 5 copies of each role.
In the event that the number of participant copies you order is not evenly divisible by the number of roles in the simulation, you will receive extra copies of one or more roles. Participants receiving the extra roles may partner with other participants playing the same role, thus negotiating as a team. So, for instance, if you ordered 31 copies of a 2-party role simulation, you would receive 15 copies of the first role and 16 copies of the second role. One of the participants playing the second role would partner with another participant playing that same role, and the two would negotiate as a team.