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Latin America is in serious trouble when it comes to foreign direct investment (FDI). True, inward FDI reached about $70 billion in 2006, but this is below the 1998-1999 peak, and a large share came from Latin American firms investing in neighboring countries, whereas inflows from Europe and the United States have fallen. Many companies are withdrawing from the region, and large investments from China, particularly in Brazil, though promised, have failed to materialize. At its peak in the 1970’s, and again in the 1990’s, Latin America’s share of total global FDI reached 17%. Now it is only 8% (in 2006), after averaging 11% over the previous five years. Among developing countries, Latin America’s share of global FDI also fell dramatically, from 40-50% in the 1970’s to about half that in 2006.