The Global Investment Competitiveness Report 2019-2020, published by the World Bank, provides novel analytical insights, empirical evidence, and actionable recommendations for governments seeking to enhance investor confidence in times of uncertainty. The report’s findings and policy recommendations are organized around “3 ICs” – they provide guidance to governments on how to increase investments’ contributions to their country’s development, enhance investor confidence, and foster their economies’ investment competitiveness.
The report presents results of a new survey of more than 2,400 business executives representing FDI in 10 large developing countries: Brazil, China, India, Indonesia, Malaysia, Mexico, Nigeria, Thailand, Turkey, and Vietnam. The results show that over half of surveyed foreign businesses have already been adversely affected by policy uncertainty, experiencing a decrease in employment, firm productivity, or investment. Foreign investors report that supporting political environments, stable macroeconomic conditions, and conducive regulatory regimes are their top three investment decision factors. Moreover, the report’s new global database of regulatory risk shows that predictability and transparency increase investor confidence and FDI flows. The report also assesses the impact of FDI on poverty, inequality, employment, and firm performance using evidence from various countries.
The report is available from the World Bank website.