Government Policies and Strategies: Assess, Formulate and Reform
To attract foreign direct investment and maximize its contribution to the sustainable development objectives of a country, clear government policies are needed to guide and inform the planning, preparation, negotiation, monitoring, and implementation of an investment.
Such policies include:
- A national development plan, policy or vision that outlines a country’s sustainable development goals and sets out in which sectors foreign direct investment is desirable to achieve those goals.
- Investment policies that are aimed at achieving a country’s development goals and set out the strategic priorities for investment. See the United Nations Conference on International Trade and Development (UNCTAD)’s Investment Policy Hub for more guidance on investment policies.
- Investment Incentives to promote foreign direct investment. Such fiscal, financial, or other investment incentives must be carefully assessed in terms of long-term costs and benefits before they are implemented. The costs and benefits of incentives must be periodically reviewed to ensure they are effective in achieving their desired goals.
- A master infrastructure plan to help identify and prioritize investments into the construction, operation and maintenance of infrastructure. For an example of how to prepare such a Master Plan, see India's National Capital Planning Board's Toolkits for preparation of Master Plan for Water Supply, Waste Water, Drainage and Solid Waste Management.
Key Tools At This Stage
UNCTAD's Investment Policy Hub, Natural Resource Charter, IGF's Mining Policy Framework, Legal and Regulatory Issues Concerning Public-Private Partnerships, African Mining Legislation Atlas, A Country Mining Vision Guidebook