German direct investment: Marked structural change

The collapse of socialism and opening up of markets in the East has led to a significant structural change in direct investment behaviour on a worldwide scale. The trend is particularly evident in Germany's direct investment patterns over the past two years. While newly industrializing countries in Latin America and Asia continue to be attractive investment locations, the major losers are the less developed countries, especially in Africa. There is a good deal of evidence to suggest that the countries of Africa, with a small number of exceptions, are increasingly becoming pure recipients of development aid.