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Looking at the economic distress which pervades countries of Latin America and the Caribbean, this book considers the role which foreign investment can play in the reactivation of these economies, many of which have experienced a steadily deterioration of the importance of foreign investment, but it is not seen as a short-term panacea that can alleviate the financial stringencies facing Latin America; it must be seen in the context of an effort to increase internal savings and to assure greater efficiency of investment, which are the essential immediate objectives that would allow Latin America to resume economic growth and, at the same time, repay its external debt.