Productive private sector investment is an important component of developing countries’ growth strategies. Attracting FDI helps to link a country’s economy to global value chains and facilitates economic upgrading. FDI brings investment, jobs, increased exports, supply chain spillovers, new technologies and business practices to countries. While the benefits of FDI are well recognized, they do not flow without a conducive policy, legal and institutional environment.
In a global landscape deeply impacted by the COVID-19 pandemic yet still subject to rapid technological change and political uncertainly, countries must refine their value propositions as investment locations. Moreover, to fully capture the benefits of FDI, a country requires clear and effective implementation of investment strategies and policies. By leveraging a comprehensive approach that addresses the legal, regulatory, procedural and institutional barriers affecting all phases of the investment life cycle, the World Bank Group helps countries establish a competitive investment climate that is favorable for attracting, retaining, and expanding sustainable FDI.