International investment is vital in achieving the interdependent objectives of sustainable development as well as business growth. Evidence suggests the fact that investment from foreign countries (FDI) can bring not just revenue and capital but also jobs and knowledge, but also technological innovation, upgrade and, in particular, sustainable, inclusive, and sustainable growth.
However, none of this is an automatic process. It’s all about creating an appropriate environment for business and an investment climate that is backed by international agreements in addition to national policies, local regulation , and specific steps. Additionally, in the current times, geo-economic competition technological advancements and the coronavirus have created new and more challenging obstacles to these benefits.
In this sense in this context, it is important to note that the Global Investment Policy and Practice initiative brings together businesses as well as government officials to address these issues and unleash the potential of investing, based on research, expertise, and experience.
An effort is being made to maximize positive outcomes – and minimising any negative impacts – of investment flows to the environment, society, and economy. This is accomplished by rewriting existing rules for investment, creating different international guidelines, identifying supporting measures and policies to implement these in the real world through projects in each country. There are projects being implemented across Cambodia, Ghana, India and Kenya.
The work is carried out on four levels that are interconnected:
Subnational Understanding the function of subnational investment institutions as well as policies and measures to the development of sustainable, and how they can be aligned with national frameworks
National Collaboration with firms, investment promotion agencies as well as academics, civil society, and other institutions by a multistakeholder model to determine, validate and implement country-wide reforms
Regional Learning from the subnational and national levels to guide the regional collaboration (including on the AU, APEC, ASEAN, ECOWAS, etc.) and sharing knowledge to policymakers in developing countries through trainings and workshops
Multilateral: Informing WTO discussions on a new framework for investment facilitation, G20 Trade and Investment Working Group initiatives and other high-level engagements to facilitate international collaboration
It is also split in six different workstreams.
Sustainability in investment What is the most crucial policies, frameworks , and measures to increase the impact of sustainable development on investments?
The facilitation of investments What is the most crucial measures for facilitation of investment that you should be considering for inclusion of international agreements, and in WTO discussions?
External FDI How can policymakers collaborate with companies to develop ways to support investing in outwards while maximising gains for both the countries of the host and home economies?
Digital FDI What are the policies and regulatory factors that will bring in FDI to boost this digital industry, be it increasing digital activity in encouraging digital adoption, or creating digital infrastructure?
Facilitation of services How can companies and governments benefit from a recent WTO result to improve the ease of trade, particularly in emerging markets, such as banking, telecoms and entertainment, among others?
sector-specific A: What is specific sector policies and measures for tourism and agribusiness that can help improve investment flows and to make sure they are in line with the development goals?
An entirely New World Investment for Development Alliance (WIDA) is in the process of being developed with the most prestigious international organizations and other important players as a way to strengthen collaboration and cooperation.