Publications

Investment promotion agencies (IPAs) in developed and developing countries are increasingly integrating gender equality and womenís empowerment on two main fronts: (a) facilitating greater impact of foreign companiesí operations on gender equality in the host country; and (b) empowering women and promoting gender equality within the agency. In addition, a growing number of multinational enterprises (MNEs) have defined and report on gender equality objectives in line with Sustainable Development Goal (SDG) 5 of the 2030 Agenda for Sustainable Development. This has generated both a demand and an opportunity for IPAs to support MNEs in this area by identifying opportunities where investmet projects can have a positive impact on gender equality. As many IPAs retheir strategies due to the COVID-19 pandemic, they can use this opportunity to mainstream gender equality across their activities.

The current COVID-19 crisis has brought to light the critical role of investment promotion agencies (IPAs). They have shown agility and reactiveness in supporting the evolving needs of investors during the pandemic and have been instrumental and valuable to governments as intermediaries between the pubic and private sector. In the past months, IPAs have continued to strengthen their online presence. A total of 77% of national IPAs worldwide have provided COVID-related information and services online as they developed specialized virtual platforms and tools.

Special Economic Zones (SEZs) have been a popular policy instrument to stimulate economic growth. It has widely been used globally in both developed and developing countries. While this is true, this paper finds that SEZ policy varies across countries based on different stages of development. But what are the interlinkages between SEZs and the megatrend of urbanization? Should SEZ policy objectives and design be contextualized to urban scenarios? To answer these questions, UN-Habitat partnered with UNCTAD to prepare this paper on the interlinkages between Special Economic Zones and urbanization.

The COVID-19 crisis will cause a dramatic fall in FDI. UNCTAD forecasts global FDI flows to decrease by up to 40 per cent in 2020, from their 2019 value of $1.54 trillion. This would bring FDI below $1 trillion for the first time since 2005. FDI is projected to decrease by a further 5 to 10 per cent in 2021 and to initiate a recovery in 2022. A rebound in 2022, with FDI reverting to the pre-pandemic underlying trend, is possible, but only at the upper bound of expectations.

This advisory report and special issue of the IPA Observer is part of ongoing efforts by the Division on Investment and Enterprise to monitor the impact of COVID-19 on investment. It draws from a recent global UNCTAD survey of IPA websites as well as a high-level brainstorming session that brought together more than 20 investment promotion executives to exchange experiences and prospect assessments. The key message: IPAs are being proactive in finding ways to continue to service investors during these challenging times. They have shifted resources towards crisis support services using new modes of investment facilitation and aftercare which will likely remain and evolve after the crisis.

Updated estimates of COVID-19’s economic impact and revisions of earnings of the largest multinational enterprises (MNEs) now suggest that the downward pressure on FDI flows could range from -30% to -40% during 2020-2021, much more than previous projections of -5% to -15%.

The Special Issue of UNCTAD’s Global Investment Trends Monitor highlights the potential impact of the Coronavirus outbreak on FDI in 2020. Depending on the scenario for the spread of the epidemic, the downward pressure on FDI caused by Covid-19 is expected to be -5% to -15% (compared to previous forecasts projecting marginal growth in the underlying FDI trend for 2020-2021).

This briefing paper by the German Development Institute provides an overview of the emerging policy debate about investment facilitation. It highlights four key challenges in order to negotiate an investment facilitation framework in the World Trade Organization that supports sustainable development.

This brochure by UNCTAD describes the role that diplomats can have in promoting and facilitating investment for the Sustainable Development Goals. To reach out to potential investors and to build relationships that can help persuade them to make sizeable long-term commitments, some investment promotion agencies have overseas offices for this purpose. However many countries, particularly low-income countries, do not have the resources to maintain such networks. In the absence of overseas investment promotion agency representations, diplomats and commercial attachés can act as liaisons to facilitate links with potential investors, particularly when they are posted to locations where their home countries are eager to target investors.

In addition to describing global and regional FDI trends and investment policy developments, UNCTAD 2019 World Investment Report provides an overview of the global special economic zone landscape and offers advice on how to respond to fundamental challenges for zones posed by the sustainable development imperative, the new industrial revolution, and changing patterns of international production.