Financial risks for the inhabitants of your beautiful state, financial risks for the insurers, financial risks for small businesses and the banks who lend to them, financial risks for local authorities. In the same way that this smoke spreads to all counties in the state, these risks can spread to all corners of the economy.
Our challenge is to broaden these lessons. When economists talk of the benefits that foreign direct investment brings, they do not only talk about the direct benefits of capital and machinery. They also talk about technology, management practices and systems of innovation. When these occur, the recipient country benefits far more than can be measured by the amount of money that has flowed in.