A report released by the World Bank states that the reduction of risks in the Caribbean region along with other developing nations is vital to push up investment and the consequent growth. Other than risk reduction, the report also states that political stability, effective regulations, and stable business environment are among the major contributors to Foreign Direct Investment being injected into the developing countries.
According to the report, global investors place more value in the macroeconomic environment, political stability, security, and a friendly regulatory environment. These are specifically applicable when decisions are ought to be made on the places where money is to be invested so that economic growth receives a fillip. There is also the requirement to create jobs.
The concerned report was released during the third week of October. The venue of the launch was the Investor Competitiveness Forum organized by the World Bank. The event saw invitees being a mix of academics, corporate executives, and donor partners. Other notable participants included policymakers hailing from a number of developing countries. These nations are notable for their implementation of major investment policy programs.
The report was summarized by Anabel Gonzalez, the senior director of Trade and Competitiveness Global Practice of the World Bank. She said that a blend of business congenial regulatory and legal environments plus political stability, macroeconomic conditions, and security, are the important factors for the multinational companies to make decisions relating to investments in the developing nations. The document further added that blending a global investor survey with investment policy issues makes this document a potent contribution to comprehend how the developing countries can de-risk economies leading to unlocking the Foreign Direct Investment.
Suggestions for improvement
This report states how FDI results in growth opportunities for local businesses. The document also examines the effect of tax holidays along with a number of fiscal incentives commonly used to attract FDI. It also analyzes the FDI characteristics originating from developing nations. It also analyzes foreign investor experience in countries wracked by conflict.
The World Bank report mix investor perspective from their standpoint with strong data analysis and extensive research. This report underlines the importance of low-risk investment and conducive climate for both local and global firms. It also makes a number of recommendations which can assist countries to attract foreign investment. The document makes a number of suggestions for maximum development.