Improving coherence to attract FDI for sustainable development

Improving coherence to attract FDI for sustainable development CUTS Breakout Session Palais des Nations, Geneva 26 October, 2018 Rajesh Aggarwal Chief, Trade Facilitation and Policy for Business

2 Coherence is required at various levels in order to attract FDI for sustainable development ! Regulatory ! Procedural ! Institutional

3 Coherence in regulatory and procedural frameworks Aligned investment policies – with trade, fiscal, industrial, agricultural… can lead to maximum benefits Standardized regulations and procedures across RECs – can lead to investments in regional value chains which can enhance regional integration Minor exemptions can lead to major gains – ‘out of the box’ benefits for preferred investors need to be catered for in policies and procedures Link incentives to development objectives – not only to the investment amount (e. g. tax benefits on exports)

There is a lot of room for coherence… 4

5 Coherence in institutional frameworks Enhanced inter-agency cooperation – Various agencies need to work with one another to complete a successful investment transaction However, they have competing agendas – service-provider vs. controlling mindset IPAs should be mandated with providing a coherent picture – play a coordinating role to be the interface for investors and provide information and handholding services * Currently international organizations play this role as technical assistance providers One stop shops can play a key role in institutional coherence Public-private dialogue – investors’ input is valuable

6 3 Thank you!