Prior to the defeat of Prime Minister Vladimir Meciar, Slovakia experienced difficulty attracting foreign investment due to perceived political uncertainty and vacillations in its privatization policy. The government has introduced tax incentives to attract more capital from abroad Annual foreign direct investment (FDI) inflow) was $220 million in 1997 and rose to $648 million in 1998. Affected by the Russian financial crisis, FDI inflow fell to $390 million in 1999, but then recovered sharply in 2000 to reach a peak of over $2 billion. FDI inflow to Slovakia in 2001 was $1.5 billion. The Netherlands has been the single largest investor.