Development Account Projects
International cooperation to develop a global monitoring system in national investment policies
Today, attracting and benefiting from FDI require both strengthening multilateral efforts to assist developing countries in overcoming the constraints that limit their attractiveness as a destination for foreign direct investment, and national efforts to devise active and well-sequenced policies to maximize the development benefits of investment flows. As a result of the global economic crisis, levels of FDI dwindled. However, since other flows of finance to developing countries have also declined, FDI remains the largest share of external capital flows to developing countries and is therefore crucial for financing a recovery from the global economic crisis and stimulating growth and stability.
With the view to further strengthen the capacity of developing countries' policy makers to attract and benefit from FDI there is a need to establish a global monitoring system to support national investment policies. This system would provide information on countries' FDI policies, laws and regulations, as well as in-depth analysis on the social, economic and development impact of such policies
The system will build on UNCTAD's existing methodology of collecting data on FDI policies. The new e-network based system will allow for comprehensive and sustainable monitoring of these policy developments, including through supporting independent analytical work and reporting at national level. The capacity-building quality of the system will be ensured through inaugural initiation seminars (held in conjunction with the Regional Commissions) and in-build online training elements.
To improve the global, regional and national knowledge base on domestic investment policies and their impact on development to attract FDI and maximize development benefits.
- Increased capacity of policy-makers in developing countries to formulate policies to attract and maximize the developmental benefits of FDI through an increased and improved access to verified, comprehensive and analyzed information on investment policies and their development implications;
- Establishment of a global information system that will enable the international community and policy makers in developing countries to monitor and assess the impact of national investment policy development;
- Establishment of an e-based network for sharing experiences and best practices (online discussion forum) between international and national investment policy makers, and others stakeholders.