Investment Promotion Agencies: Investment Attraction, Policy Role, and Response to Crises

• Autores: Carlos Portales, Chris Rodríguez
• Localización: Handbook of International Investment Law and Policy / Julien Chaisse (aut.), Leïla Choukroune (aut.), Sufian Jusoh (aut.), 2021, ISBN 9811336148, págs. 155-179
• Idioma: inglés
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• Resumen

  • According to the World Bank, Investment Promotion Agencies (IPAs) can be considered a country’s best tool for attracting, establishing, retaining, expanding, and linking private foreign direct investment (FDI). But the ability of a country to attract investment goes well beyond proactive attraction efforts: market size, availability of natural and human resources, physical and digital connectivity, participation in global value chains, and having the right domestic and international policies are some of the factors that have the largest impact on the way investors see a host country. Hence, IPAs are increasingly undertaking a policy advocacy role, in order to improve the country’s investment climate, to the advantage of foreign and domestic investors alike. This advocacy role becomes especially relevant in moments of crises, such as the one presented by the SARS-CoV-2 pandemic (the COVID-19 pandemic) and its subsequent economic recession, as countries need to find innovative ways to attract foreign capital in times of global economic distress, including a continuous improvement of their domestic investment climate. But turbulent times also come with additional considerations with regard to free flows of FDI, including domestic review and/or restrictions on acquisition of sensitive assets by foreign entities (“screening mechanisms”).