What strategies might LDCs adopt to make FDI fit their development aspirations better without destroying all incentives for foreign investors?

LDCs can adopt strategies such as establishing targeted incentives that align foreign direct investment (FDI) with local development goals, such as offering tax breaks for projects that create jobs or enhance local infrastructure. Additionally, they can implement regulatory frameworks that ensure FDI contributes to sustainable development, including environmental and social governance standards. Engaging in public-private partnerships can also help bridge the gap between foreign investors and local communities, ensuring that investments are beneficial for both parties without deterring foreign investment. Finally, fostering local entrepreneurship and capacity building can create a more favorable environment for FDI that supports long-term development objectives.