Core Principles for Investment Policymaking
This section contains the Core Principles of investment policymaking of the IPFSD. Users are invited to provide comments, suggestions, or alternative drafting options by clicking on "comment" next to the relevant principle. General comments on the set of Core Principles can be added under the first Principle.
1. Investment for sustainable development
The overarching objective of investment policymaking is to promote investment for inclusive growth and sustainable development.
2. Policy coherence
Investment policies should be grounded in a country's overall development strategy. All policies that impact on investment should be coherent and synergetic at both the national and international level.
3. Public governance and institutions
Investment policies should be developed involving all stakeholders, and embedded in an institutional framework based on the rule of law that adheres to high standards of public governance and ensures predictable, efficient and transparent procedures for investors.
4. Dynamic policymaking
Investment policies should be regularly reviewed for effectiveness and relevance and adapted to changing development dynamics.
5. Balanced rights and obligations
Investment policies should be balanced in setting out rights and obligations of States and investors in the interest of development for all.
6. Right to regulate
Each country has the sovereign right to establish entry and operational conditions for foreign investment, subject to international commitments, in the interest of the public good and to minimize potential negative effects.
7. Openness to investment
In line with each country's development strategy, investment policy should establish open, stable and predictable entry conditions for investment.
8. Investment protection and treatment
Investment policies should provide adequate protection to established investors. The treatment of established investors should be non-discriminatory in nature.
9. Investment promotion and facilitation
Policies for investment promotion and facilitation should be aligned with sustainable development goals and designed to minimize the risk of harmful competition for investment.
10. Corporate governance and responsibility
Investment policies should promote and facilitate the adoption of and compliance with best international practices of corporate social responsibility and good corporate governance.
11. International cooperation
The international community should cooperate to address shared investment-for-development policy challenges, in particularly in least developed countries. Collective efforts should also be made to avoid investment protectionism.