This publication addresses the impact of foreign direct investment (FDI) on development and contains new contributions to an understanding of how policy may affect the interface between FDI and development. The experiences of several countries analysed in this book suggest that FDI has helped development and reduced poverty, in part because they have had the capacity to follow an active policy stance towards FDI. The chapters contributed by Dirk Willem te Velde on FDI and income inequality in Latin America, Michael Mortimore on TNC strategies and development in Latin America and the Caribbean and Watispaso Mkandawire on FDI in Zambia and Uganda bring together a number of different contemporary approaches to examining FDI and development. This publication includes a number of policy options relevant for developing country government efforts and donor agencies supporting developing country government efforts to improve the poverty and inequality reducing effect of FDI.