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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

More info here