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哥伦比亚大学国际直接投资展望中文版都可以在我们的网站查看:
https://ccsi.columbia.edu/content/columbia-fdi-perspectives
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*Columbia FDI Perspectives*
Perspectives on topical foreign direct investment issues
Editor-in-Chief: Karl P. Sauvant ([log in to unmask])
Managing Editor: Matthew Conte ([log in to unmask])

*The Columbia FDI Perspectives are a forum for public debate. The views
expressed by the authors do not reflect the opinions of CCSI or our
partners and supporters.*

No. 354   April 3, 2023
*What can governments do to boost FDI for sustainable development?*
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=4bc693a587&e=763bcf158c>
by
Martin Wermelinger* <#m_7087432996139178134__edn1>

FDI can contribute to achieving the Sustainable Development Goals (SDGs),
but FDI benefits are not automatic. Positive contributions can be the
direct result of the operations of MNEs, for instance, when they introduce
new technologies or better employment practices in host countries. MNE
activities also have spillover effects through value-chain relationships
with domestic firms, competition, knowledge sharing, and worker mobility.
On the other hand, FDI may contribute negatively to the SDGs when MNEs
source their inputs irresponsibly, crowd out domestic SMEs, widen the
gender gap, or generate significant carbon emissions.

Governments have an important role to play in increasing the net benefits
of FDI for achieving the SDGs. For that purpose, governments have different
priorities, resources and options at their disposal. There is no single
approach for all countries, and appropriate interventions depend on a
country’s context and development. Five key considerations include:[1]
<#m_7087432996139178134__edn2>

*A coherent and coordinated approach is the cornerstone*. Many governments
suffer from a lack of policy coherence and coordination across ministries
and agencies, particularly when it comes to complex and interrelated
ambitions such as reaching the SDGs. Involving bodies from across public
administration (e.g., through a coordinating council), governments should
carefully define what aspects of sustainable development they would like to
promote through FDI, taking into account potential trade-offs, and then
identify and implement policy interventions. To build consensus,
stakeholder consultations and inclusive decision-making processes (“hybrid
governance”) involving the private sector, trade unions and civil society
are key. Governments can also seek to assess the impact of FDI (e.g., with
environmental impact assessments, or using FDI Qualities Indicators
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=9f51d8bd56&e=763bcf158c>)
and of related policies to identify bottlenecks in implementation.

*Market access is necessary but not sufficient. *For instance, removing
high pre-establishment restrictions on FDI
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=ab6e185529&e=763bcf158c>
in modern services (e.g., ICT, R&D) fosters investment and productivity,
with knock-on effects on other sectors. Enabling market access is, however,
not sufficient to tackle major societal and environmental challenges. FDI
that contributes to the SDGs can be facilitated through domestic
legislation that fulfils international standards related to sustainable
international (or even more ambitious national) standards. However,
striking an appropriate regulatory balance to advance multiple
sustainability objectives is complex and benefits from inclusive processes,
as stipulated above. This tension exists, for instance, is in the labor
market: stringent employment protection can increase firms’ labor
adjustment costs, but also improves job security. Greater labor market
flexibility matters for the locational choices of foreign investors and
affects job creation and the knowledge intensity of investments. Labor
market policy is therefore most effective when negotiated with trade unions
and businesses.

*Tax incentives and other proactive forms of support may help address
market failures that diminish positive impacts of FDI*. Many developing
countries use targeted tax incentives
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=993c072a06&e=763bcf158c>
that aim to foster investments conditioned on specific criteria promoting
sustainable development. Botswana, for instance, allows investors to deduct
200% of their costs for worker trainings from taxable income. South Africa
offers accelerated depreciation for equipment used for renewable energy
production, which lowers the tax burden for investors. Zambia offers
enhanced tax allowances per newly employed disabled person. Other
pro-active support can also help: Jordan, e.g., offers vocational training
on renewable energy and energy efficiency. Yet, the effectiveness of such
support is often not assessed. Regular evaluation is essential to avoid
wasteful tax expenditures and use of public resources.

*Investment promotion agencies (IPAs) are key players in bridging
information gaps and facilitating sustainable FDI.* A recent survey
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=b7fbb5313e&e=763bcf158c>
shows that sustainable development considerations are important for IPAs
when setting their priorities. 87% of IPAs in the OECD use indicators
linked to job creation and skills to prioritize investment attraction, and
about 50% use indicators related to decarbonization. The tools used by IPAs
include market studies, sector specific events and proactive investor
engagement (e.g., one-to-one meetings, email/phone campaigns). IPAs also
engage in policy advocacy by transmitting business concerns to
policymakers, including with regards to operating more sustainably.
Aftercare services for existing investors (such as matchmaking services and
business-to-business meetings between foreign and domestic firms)
strengthen FDI sustainability spillovers on the domestic economy.

*Developing country **governments and the donor community should work
together to identify solutions that strengthen FDI impacts on the SDGs*,
building on their significant existing action
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=e260e25663&e=763bcf158c>
for private sector development. Entrenched in efforts for SDG17
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=bcfdd44e21&e=763bcf158c>,
cooperation could include supporting policy reforms and implementation,
promoting alignment with international standards, reducing exposure to
social and environmental risks, and directly supporting the private sector.
Using a new OECD guide
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=c42b8ef782&e=763bcf158c>,
donors could map their existing interventions onto recipient countries,
assessing alignment with recipient countries’ priorities on FDI and
sustainable development and identifying potential support gaps. These
priorities could be identified by using the UN’s Voluntary National Reviews
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=c3a3bc27b4&e=763bcf158c>
on SDG progress or more targeted reviews on sustainable investment policy.
[2] <#m_7087432996139178134__edn3>

------------------------------
* <#m_7087432996139178134__ednref1> Martin Wermelinger (
[log in to unmask]) is Head of the Investment Qualities and
Incentives Unit, OECD. This *Perspective* draws on OECD, *FDI Qualities
Policy Toolkit*
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=9fce79b694&e=763bcf158c>
(Paris: OECD, 2022). The author wishes to thank Russell Curtis, Collette
van der Ven and Rob van Tulder for their helpful peer reviews.
[1] <#m_7087432996139178134__ednref2> The need for a whole-of-government
approach to strengthen FDI for sustainable development is increasingly
recognized in international policy fora. More than 50 OECD and non-OECD
countries adopted, at the OECD Ministerial Council Meeting 2022, the
first government-backed
instrument
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=8976aea827&e=763bcf158c>
on the subject.
[2] <#m_7087432996139178134__ednref3> E.g., OECD, Investment Policy Reviews
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=a2fe6c1209&e=763bcf158c>,
OECD, FDI Qualities Reviews
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=142b58d6d2&e=763bcf158c>
and the Investment Policy Reviews
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=616ccc5401&e=763bcf158c>
by UNCTAD.
*The material in this Perspective may be reprinted if accompanied by the
following acknowledgment: “Martin Wermelinger**, ‘**What can governments do
to boost FDI for sustainable development?,**’ Columbia FDI Perspectives,
No. 354, April 3, 2023. Reprinted with permission from the Columbia Center
on Sustainable **Investment (**http://ccsi.columbia.edu*
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=6af955f088&e=763bcf158c>*).”
A copy should kindly be sent to the Columbia Center on Sustainable
Investment at **[log in to unmask]* <[log in to unmask]>

For further information, including information regarding submission to the
*Perspectives*, please contact: Columbia Center on Sustainable Investment,
Matthew Conte, [log in to unmask]

*Most recent Columbia FDI Perspectives*
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=6d1f53d304&e=763bcf158c>


   - No. 353, Mark Feldman, “An opportunity to reimagine investment
   arbitration in Beijing
   <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=f4d2b1841b&e=763bcf158c>,”
   *Columbia FDI Perspectives*, March 20, 2023
   - No. 352, Nicola Woodroffe and and Erica Westenberg, “Governments and
   companies must address climate and governance risks when petroleum assets
   change hands
   <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=c184c8b195&e=763bcf158c>,”
   *Columbia FDI Perspectives*, March 6, 2023
   - No. 351, Marian Ingrams and Katharine Booth, “Hardening soft law:
   strategic use of the OECD Guidelines to achieve meaningful outcomes
   <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=a8c57087bd&e=763bcf158c>,”
   *Columbia FDI Perspectives*, February 20, 2023

*All previous FDI Perspectives are available at
https://ccsi.columbia.edu/content/columbia-fdi-perspectives
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=cf10d29374&e=763bcf158c>*
.

*Other relevant CCSI news and announcements*

   - CCSI is seeking a *Senior Legal Researcher *to help carry forward the
   Center’s diverse research agenda.This position will collaborate with CCSI's
   Director and Research Staff to execute the Center’s applied research agenda
   on the laws, policies, and practices that shape international investment
   and its alignment with sustainable development and human rights. The
   incumbent will contribute to ongoing projects and research related to the
   role and governance of investment in the realization of sustainable
   development. Specifically, this position will contribute to research and
   analysis of international investment policy and legal frameworks, and
   alternative policies and practices related to international investment,
   particularly with respect to the Center’s focus on natural resource
   investments (e.g. land, agriculture and mining), the energy transition,
   human rights, and finance. *More details on the position, and how to
   apply, can be found here
   <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=878f231dd0&e=763bcf158c>.*

   - CCSI and the Sabin Center for Climate Change Law are hiring for the
   position of *Senior Researcher or Senior Associate, Climate Law &
   Finance*. The researcher or associate will work collaboratively with
   CCSI's and the Sabin Center’s Leadership and Research Staff to analyze the
   interrelated legal, finance, and policy pathways critical to achieving
   global climate goals and facilitating the energy transition, and the
   corresponding implications for public, private, and institutional financial
   sector actors, regulators, and alliances. *Please note that there are
   two different application channels for this posting: we are accepting
   applicants with a JD (or equivalent legal degree) or PhD degree as well as
   applicants with other degrees. **More details on the position and
   instructions for applying can be found here
   <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=70f9d3e722&e=763bcf158c>*
   .


   - *Apply now* for our 2023 virtual *Executive Training Program on
   Extractive Industries and Sustainable Development* from* June 5–16, 2023*.
   The interdisciplinary program is designed to equip participants with the
   necessary skills to promote the responsible development of the extractive
   industries in resource-rich developing countries and to encourage a rich
   dialogue about best practices from around the globe. *Applications will
   be considered on a rolling basis until April 30, 2023.* *For more
   information, and to apply, visit our website
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   .


   - *Apply now* for our 2023 virtual *Executive Training Program on
   Sustainable Investments in Agriculture* from *May 2-12, 2023*. This
   interdisciplinary program explores challenges and solutions for advancing
   sustainable investments in agriculture. It includes asynchronous and
   synchronous components, including short and interactive live sessions
   dedicated to engagement with course lecturers and participants from around
   the world. *Applications will be considered on a rolling basis until
   April 7, 2023*. *For more information, and to apply, visit our website
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   .


   - *Applications are now open* for our 2023 virtual Executive Training on
   Investment Treaties and Arbitration for Government Officials from *September
   18-22, 2023*. This course is designed for government officials facing
   complex and pressing issues concerning international investment treaties.
   The course will address: States’ objectives in their investment policy;
   links between treaties, investment flows, and development objectives;
   investor-state dispute settlement, and the concerns of states; trends and
   developments in treaty practice; opportunities and challenges facing
   governments in treaty reform; and other approaches to investment
   governance. *Applications will be considered on a rolling basis
   until July 15, 2023. **For more information, and to apply, visit
   our website
   <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=6a6e32f817&e=763bcf158c>.*

Karl P. Sauvant, Ph.D.
Senior Fellow
Columbia Center on Sustainable Investment
Columbia Law School - Columbia Climate School
*Copyright © 2023 Columbia Center on Sustainable Investment (CCSI), All
rights reserved.*
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*Karl P. Sauvant, PhD*


*Senior Fellow*
*Columbia Center on Sustainable Investment*
Columbia Law School, Columbia University
435 West 116th St., Rm. JGH 825, New York, NY 10027
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Challenges Ahead
<https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4389689>", "Three
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Important <https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4285857>",
*Investment
Facilitation for Development: A Toolkit for Policy Makers. Second Edition
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<https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4103768>", "How Would
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<https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4084032>”, "Green FDI:
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<https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3943705>", "More
Attention to Policies! Improving the Distribution of FDI Benefits
<https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3818974>", "Facilitating
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Proposals <https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3496967>", "An
Inventory of Concrete Measures to Facilitate the Flow of Sustainable FDI:
What? Why? How?
<https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3739179>", are available
at https://ssrn.com/author=2461782 .

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