07 Oct 10 - Country-specific data on global investment policy trends
The second and third quarter of 2010 saw many policy measures aimed at promoting and facilitating foreign investment, including new international investment agreements (IIAs). There is also a movement towards strengthening the State´s regulatory role, says UNCTAD´s new Investment Policy Monitor.
The third Investment Policy Monitor provides the international investment community with country-specific, up-to-date information about the latest developments in foreign investment policies, both at the national and international levels.
During the period under review in this Monitor (April-early October 2010), at least 41 economies introduced new national investment policy measures, with 27 enacting investment-specific policy measures, and 16 enacting measures related to foreign investment.
At the international level, 79 economies concluded 50 new international investment agreements (IIAs), including 39 double taxation treaties (DTTs), 1 bilateral investment treaty (BIT) and 10 other IIAs.
The Monitor finds that, during the period under review, there has been an ongoing trend towards more investment liberalization and - even more so - towards facilitation and promotion of investment. At the same time, numerous countries adopted policies to strengthen the role of the State in the economy, in particular in the financial sector and extractive industries.
The overall trend towards attracting more foreign investment can enhance the economic recovery in the aftermath of the financial crisis - particularly at this critical juncture, when public investment has run out of steam in many countries and when private investment is yet to reassume its lead role in the global economy.
Likewise, the development towards strengthening the role of the State, in particular in the financial sector, can contribute to more responsible investment in the future. However, finding the right balance between more regulation, on the one hand, and investment promotion, on the other hand, remains a challenge.
The 3rd quarter report of the UNCTAD Global Investment Trends Monitor will be issued next week.