Examining the latest global trends on FDI, Kalotay explained that although FDI reached a record level of USD 1.8 trillion in 2007, it was expected to decrease by 11 to 12 percent in 2008. Throughout the presentation, he looked at elements influencing the resilience of countries with transition economies, particularly Russia, to withstand the predicted downturn.

Participating in the conference were: Vi core university member, Moscow's Higher School of Economics (HSE), affiliate members, St. Petersburg State University (hosting the conference in St. Petersburg) and Moscow State Institute of International Relations (MGIMO) (hosting the conference in Moscow) and invited guest, the Moscow School of Economics.

"The universities highly value opportunities for students to interact directly with UNCTAD experts working on research in areas such as investment, which motivates them to learn more about this topic and to examine it critically," said Virtual Institute Chief, Vlasta Macku, who co-moderated the conference. "Students showed the capacity to relate the findings of the WIR to their own country and the region - a sign that the report has been well 'absorbed'".

"I would like to thank you once again in behalf of the whole Chair and students, who were really amazed," writes Tatyana Isachenko, HSE's Vi member coordinator and co-moderator, adding that she found the videoconference particularly useful, as the topic is currently being taught to third year students at MGIMO, who also attended.

"Professors and students were very interested in the issue and I was really delighted that they asked so many questions, and used this opportunity to get the information from the "first hands," wrote Anna Abramova, MGIMO Vi member coordinator.

Representing the Permanent Mission of the Russian Federation to the United Nations in Geneva, were Dmitry Lyakishev, Head of the Trade Policy Division, and Efim Stroev, Second Secretary.

"We believe that the presence of the mission at such events is very important for the students because it helps them understand that, as they are to become future decision and policymakers for Russia, their education is important for the government of their country," Macku added.

"I believe that such conferences are very productive both for the Organization, governmental structures and for scientific communities as well," writes Stroev.

Salient points of the presentation

• FDI inflows have dramatically increased into Commonwealth of Independent States (CIS) countries since 2002, particularly in the natural resource sector, with the largest chunk going to Russia;

• Russia represents 90 percent of FDI outflows in the region;

• FDI policy changes in the world continue to be in favor of FDI, even though restrictive measures have increased, such as new laws regarding FDI in natural resources in Russia and Kazakhstan, although the impact on Russia may be positive, providing more clarity on rules;

• The state's role in the development of infrastructure is vital for competitiveness and economic growth, particularly in transition countries, where a relatively weak private sector is unable to take on a larger share of the infrastructure investment. The share of FDI in total investment in infrastructure, therefore, is higher in transition economies than in other countries;

• To benefit from infrastructure FDI, the host countries must create efficient and accountable institutions and well-designed transparent regulatory frameworks. They must also develop the capacity to negotiate with foreign investors and deal with public-private partnerships. it is also essential that the home countries continue to provide Official Development Assistance (ODA) for infrastructural projects.