2016 – G20 Trade Ministers reinforced their “determination to promote inclusive, robust and sustainable trade and investment growth” with the endorsement of the G20 Guiding Principles for Global Investment Policymaking. 2015 OECD Ministerial Council Meeting in Paris. The PFI looks at 12 different policy areas affecting investment: investment policy, investment promotion and facilitation, competition, trade, taxation, cyprus investment promotion agency governance, finance, infrastructure, developing human resources, policies to promote responsible business conduct and investment in support of green growth, and lastly broader issues of public governance. The PFI is neither prescriptive nor binding.
It emphasises the fundamental principles of rule of law, transparency, non-discrimination and the protection of property rights but leaves for the country concerned the choice of policies, based on its economic circumstances and institutional capabilities. It helps governments to design and implement policy reforms to create a truly attractive, robust and competitive environment for domestic and foreign investment. Although addressed to governments, the PFI needs to be seen in the broader context of other converging international initiatives to improve the investment climate, including the OECD Guidelines for Multinational Enterprises. With its broad horizontal approach, the PFI assists governments engaged in domestic reform, regional co-operation or international policy dialogue on investment.
It also serves as a reference point for investment promotion agencies, donors as they assist recipient country partners in improving the investment climate, and businesses, trade unions, and NGOs in their dialogue with governments. PFI has been used by close to 30 countries at varying levels of development and across all continents, as a tool for assessing investment and business climates, and for designing reforms to improve them. The PFI also provides a basis for support on regional investment policy dialogue. Established regional economic communities are currently using the PFI to promote peer learning on regional investment policy and policy harmonisation among their members. Examples include the NEPAD-OECD Africa Investment Initiative, the ASEAN-OECD Investment Programme.
OECD Investment Policy Reviews present an overview of investment trends and policies in the countries reviewed. The reviews take a comprehensive approach using the OECD Policy Framework for Investment to assess the climate for domestic and foreign investment at sub-national, national or regional levels. They then propose actions for improving the framework conditions for investment and discuss challenges and opportunities for further reforms. Around 30 countries have used the PFI when engaging in investment policy reviews.