The broader investment policy framework remains important to benefit from GVCs

Specific measures to promote and facilitate investment in GVCs can be successful if they take place within the context of, and not substitute for, broader policies for improving the investment environment. Policy tools such as the OECD’s Policy Framework for Investment and UNCTAD’s Investment Policy Framework for Sustainable Development have been designed around the whole-of-government approaches needed to establish an environment conducive to receiving international investment linked to GVCs.

As governments become more aware of the role of international investment in GVCs, inward investment policies increasingly target individual production stages and tasks instead of industries. Governments may therefore be tempted to create a new generation of investment incentives aimed at specific sections of GVCs that appear to add more value. This could give rise to incentive wars for “prized” parts of certain value chains. In the absence of disciplines or international co-ordination of investment incentives, this could effectively transfer a share of the value created to international investors, at significant cost to taxpayers.

This is particularly a concern in the current context of weak growth, as governments are under intense pressure to assist domestic companies and to preserve jobs. As a result, they may sometimes resort to policies or practices that discriminate against foreign investors or discourage outward investment. They may also be tempted to yield to this pressure in informal and diffuse ways that are not manifested as policy changes, thereby undermining investors’ confidence that frameworks in host countries are predictable and transparent. Strengthening multilateral co-operation and avoiding such policies can help ensure that the multilateral investment system continues to strengthen GVCs and support future growth.

Не нашли, что искали? Воспользуйтесь поиском: