Most economists would probably agree that it is not sufficient for developing countries to attract more foreign direct investment (FDI). Even for host countries with high attractiveness to FDI, the challenge remains to ensure that FDI fosters economic development, e.g., by inducing technological and managerial spillovers, generating additional employment and income opportunities, and alleviating world-market integration. However, the consensus hardly goes further than this. It continues to be highly controversial what, if anything, host-country governments can and should do to improve the developmental impact of FDI in Third World economies. Two recent UNCTAD publications on the theme "FDI policies for development" do not provide ready-made solutions for policymakers in developing countries. Nevertheless, the detailed assessment of contentious FDI policies offers valuable insights. This refers especially to the World Investment Report 2003 which, in addition to the regular part on recent FDI trends, focuses on the developmental dimension of bi-, pluri-, and multilateral investment agreements (UNCTAD 2003a: Part 2). The report discusses eight key issues: the definition of investment, national treatment of foreign investors, nationalization and expropriation, dispute settlement mechanisms, performance requirements, FDI incentives, technology transfers, and competition policy. As concerns performance requirements, UNCTAD (2003a) draws on a concurrent publication offering detailed evidence from selected host countries (UNCTAD 2003b). Country studies on the incidence