the impact of FDI on the welfare of North African populations. The first, intended to reduce the differences in impact from one country to another, is that policies to attract FDI should be carefully thought through to direct the investment towards the most productive sectors of the economy, in particular the manufacturing sector. The second, to reduce inequality within any particular country, is that sufficient incentives should be offered to encourage foreign investment in highly labour-intensive sectors, benefiting the poorest, such as agriculture, fishing, education, health care and infrastructure development. The third recommendation aims to better distribute wealth within the region, to reduce poverty and to improve human development. To do this, it encourages North African governments to pursue the efforts undertaken to strengthen the quality of their institutions and governance.