2014年-世界发展银行全球_Promoting_Foreign_Investment_in_Fragile_and_Conflict-Affected_Situations_8页_648kb

Investment Climate Summary

Core Content

This document provides guidance for investment policymakers and promoters in fragile and conflict-affected situations (FCS) on how to effectively attract and manage foreign direct investment (FDI) to support economic recovery and development. Despite the perception of these regions as risky, FDI has grown significantly over the past eight years, with FCS economies attracting almost three times more FDI than the rest of the world, albeit from a low base.

The focus is on short-term investment promotion strategies that can be implemented to improve the investment climate, create jobs, and build economic resilience, while also managing risks associated with environmental and social impacts.

Main Points

• FDI in FCS: FDI in FCS has grown rapidly, driven by opportunities in natural resources, reconstruction, and underserved consumer markets.
• Challenges: FCS economies often face weak governance, limited infrastructure, and negative international perceptions that deter investment.
• Opportunities: There are diverse investment opportunities, particularly in competitive subsectors such as financial services, food and beverages, and business services.
• Investor Types: Certain types of investors are more likely to invest in FCS, including:
  • FCS-accustomed investors: Firms experienced in operating in fragile environments, often involved in extractive and infrastructure projects.
  • Regional investors: Investors from nearby countries with historical or cultural ties, who are more familiar with local conditions.
  • Diaspora: Former citizens with resources and a desire to support their home countries' recovery.
  • Investors with non-financial motives: Such as state-owned enterprises and socially responsible funds, which may prioritize long-term political or social goals over immediate profits.

Key Information

Top Sectors for FDI in FCS (2005–2012)

Leading Investors in FCS

Investment Promotion Strategies

1. Targeted Outreach: Focus on specific, competitive subsectors and projects rather than broad economic sectors.
2. Investor-Centric Approach: Understand the investor's needs and tailor the investment process accordingly.
3. Address Concerns Proactively: Be transparent about risks and offer solutions such as political risk insurance, security services, and legal protections.
4. Build Credibility: Use factual, objective data to counteract negative perceptions and demonstrate a safe, viable investment environment.
5. Environmental and Social Vigilance: Ensure investments do not exacerbate existing fragility or cause harm to local communities and the environment.

Conclusion

Investment promotion in FCS is not only possible but also crucial for economic recovery and development. Success depends on identifying the right investors, addressing specific challenges, and ensuring that investments align with the country's development goals and do not create new problems. The document emphasizes the importance of a strategic, targeted, and transparent approach to investment promotion in these contexts.