1. Investment and sustainable development strategy
1.1 Strategic investment policy priorities
Investment policy should be geared towards the realization of national sustainable development goals and grounded in a country’s overall development strategy. It should set out strategic priorities, including: - Investment in specific economic activities, e.g. as an integral part of an industrial development strategy. - Areas for mutual reinforcement of public and private investment (including a framework for public-private partnerships). - Investment that makes a significant development contribution by creating decent work opportunities, enhancing sustainability, and/or by expanding and qualitatively improving productive capacity (see 1.2) and international competitiveness. Investment policy priorities should be based on a thorough analysis of the country's comparative advantages and development challenges and opportunities, and should address key bottlenecks for attracting FDI.
1.2 Investment policy coherence for productive capacity building
1.2.1 Human resource development
The potential for job creation and skills transfer should be one of the criteria for determining investment priorities. Taking into account the mutually reinforcing link between human resource development (HRD) and investment, investment policy should inform HRD policy to prioritize skill building in areas crucial for development priorities, whether technical, vocational, managerial or entrepreneurial skills.
1.2.2 Technology and know-how
The potential for the transfer of appropriate technologies and the dissemination of know-how should be one of the criteria for determining investment priorities, and should be promoted through adequate investment-related policies, including taxation and intellectual property.
1.2.3 Infrastructure (1)
The potential for infrastructure development through FDI, in particular under PPPs, should be an integral part of investment policy. Infrastructure development policies should give due consideration to basic infrastructure areas crucial for the building of productive capacities, including utilities, roads, sea- and airports or industrial parks, in line with investment priorities.
1.2.4 Infrastructure (2)
A specific regulatory framework for PPPs should be in place to ensure that investor-State partnerships serve the public interest (see also section 3.9 below).
1.2.5 Enterprise development
The potential for FDI to generate business linkages and to stimulate local enterprise development should be a key criterion in defining investment policy and priorities for FDI attraction. Enterprise development and business facilitation policies (including access to finance) should promote entrepreneurial activity where such activity yields particularly significant benefits through linkages and acts as a crucial locational determinant for targeted foreign investments.
- 1.2.1 Human resource development
- 1.1 Strategic investment policy priorities