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Government Policies and Strategies:
Assess, Formulate and Reform

Attracting foreign direct investment for sustainable development requires clear and well-defined government policies.

About

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

The Hub includes tools for policymakers to reference when formulating investment policies and negotiating investment agreements. It also provides an objective evaluation of a country’s legal, regulatory and institutional framework to attract direct investments. It also provides the world’s most comprehensive online database of national investment laws and regulations, as well as several other helpful tools.

Natural Resource Charter

The Natural Resource Charter is a set of principles to guide governments and societies’ use of natural resources so these economic opportunities result in maximum and sustained returns for a country’s citizens. The Charter outlines tools and policy options designed to avoid the mismanagement of these natural diminishing riches and work towards ensuring their ongoing benefits.

IGF's Mining Policy Framework

The Mining Policy Framework (MPF) is a compendium of best practices in mining law and governance. It was developed by governments to provide a framework to guide governments to come up with a mineral regime for sustainable development. It is available in English, French, Spanish, and Russian.

Legal and Regulatory Issues Concerning Public-Private Partnerships

The Legal Framework Assessment provides a summary of key areas of a host country’s existing laws that will need to be reviewed when a government embarks on an infrastructure project, particularly one involving the private sector.

In addition, checklists, model bid documents, examples of legislative provisions relevant to infrastructure PPP projects, and financing mechanisms for PPP projects are provided.

Available in English, French, and Spanish.

African Mining Legislation Atlas

AMLA is a free online one-stop resource for Africa’s mining legal framework (mining codes, regulations and related legislation) with interactive features to provide comparative data. The AMLA guiding template is an annotated document that outlines a menu of legislative solutions to assist countries in the preparation or revision of their mining laws.

A Country Mining Vision Guidebook

The CMV, created by the United Nations Economic Commission  for Africa, aims to help member States domesticate the Africa Mining Vision (AMV) at the country level through a multi-stakeholder consultative process with a view to formulating a shared vision on how the mineral resources exploitation can promote broad-based development and structural transformation of their respective countries.

Available in English and French.

CCSI, "The Case for a Climate-Smart Update of the Africa Mining Vision," (April 2021).

This policy note highlights that the 2009 Africa Mining Vision, while widely endorsed, risks falling behind if it does not integrate climate change and just transition imperatives. It makes the case for updating the vision to reflect the Paris Agreement and global net-zero commitments. CCSI calls for governance updates to support low-carbon transitions, just transition measures, and environmental safeguards. For negotiators, it provides a policy anchor to justify including climate-smart measures in mining contracts.

CCSI, "Five Years After the Adoption of the Paris Agreement, Are Climate Change Considerations Reflected in Mining Contracts?," (July 2021).

CCSI reviews mining contracts since 2015 for evidence of climate provisions. They find such contracts to be silent in key areas such as renewable energy integration, deforestation accounting, and water use regulations. The report recommends governments include stronger climate-related clauses such as climate risk assessments, robust closure plans, and tailings dam design justifications in future negotiations.

CCSI, "Briefing: International Investment Law and the Extractive Industries," (July 2022).

This briefing outlines how international investment treaties structure the rights of foreign investors and limit host state regulatory authority. CCSI highlights tensions between investor protections and governments’ need to safeguard public interests, including environmental and social outcomes. The note provides an overview of instruments like stabilization clauses and ISDS that frequently arise in extractive sector contracts.

CCSI, "Primer on International Investment Treaties and Investor–State Dispute Settlement," (2022).

CCSI introduces a public sector audience to the key structures of investment treaties and the investor–state dispute settlement system. The primer provides an accessible explanation of how arbitration works, its historical development, and the growing controversies around it. This resource can be helpful to highlight implications for host country policy choices.

CCSI, "Climate Action Needs Investment Governance, Not Investment Protection and Arbitration," (March 2022).

CCSI argues that strengthening investment governance is essential to advance climate goals, whereas expanding investor protection architectures risks undermining them. Their argument critiques ISDS as an obstacle to climate-aligned policymaking. The authors advocate for frameworks privileging sustainable development outcomes over narrow investor interests.

CCSI, "How ISDS Interferes with the Governance of Critical Minerals for a Just Energy Transition—And What to Do About It," (May 2024).

This piece explores the risks posed by ISDS for states attempting to govern critical mineral sectors central to the energy transition. It demonstrates that investor–state arbitration can create regulatory chill, constraining governments’ ability to introduce reforms. The authors propose policy and legal strategies to address these constraints.

CCSI, "How Can States Best Fill the Vacuum of the Flawed Energy Charter Treaty?," (March 2023).

This brief notes the shortcomings of the Energy Charter Treaty (ECT) and its incompatibility with climate objectives. It suggests ways in which states might cooperate outside the ECT framework to govern investment, particularly in energy. The authors highlight innovative approaches to treaty design.

CCSI, "Incorporating Climate Considerations Into Investment Assessment Processes: Guidance for National and Local Governments," (April 2024).

The guidance sets out how governments can integrate climate considerations into national and local investment assessment processes. It emphasizes aligning investment approvals with net-zero strategies and avoiding projects that lock in high emissions. Tools, evaluation methods, and institutional recommendations are included.

CCSI, all three issues of PLUS Politics

This series addresses political economy realities behind extractive governance, covering issues such as free, prior, and informed consent, transparency, and environmental impact assessments. The authors argue that ignoring political context leaves reforms ineffective. Practical strategies for embedding political considerations into governance are suggested. For negotiators, these insights can help anticipate domestic political constraints that could affect the enforceability of contract terms.

Issue 1: “Free, prior, and informed consent: Getting political to improve impact,” (2020).

Issue 2: “Transparency and extractive industries: Getting serious about politics to get serious about impact,” (2020).

Issue 3: “Tackling the EIA Impact Gap: Addressing Political Economy Realities to Bring Actual Practice Closer to Best Practice,” (2022).

CCSI, "Unlocking the Power of Reformers to Achieve Better Progress on Extractives Governance," (2022).

This CCSI piece explores how reform-minded leaders can overcome barriers to improve extractive sector governance. It emphasizes coalition-building, timing, and informed strategies to enable institutional change. Lessons are drawn from comparative case studies.