Since 2006, the OECD Policy Framework for Investment (PFI) has provided a comprehensive and systematic approach for governments to implement specific policy reforms to create a robust and competitive environment for domestic and foreign investment. The PFI has been widely used for the OECD’s country-specific investment policy reviews, and has served as a reference point for investment promotion agencies and donors.
To reflect the developments that have reshaped the global investment landscape, such as the emergence of new major outward investors, the spread of global value chains, and growing investment protectionism, the PFI is currently being updated. A first discussion, including on five revised draft chapters, took place in October back-to-back with the Investment Committee meeting. A more extensive consultation is planned for December 2 when the OECD Advisory Group on Investment and Development will organize a half-day stakeholder consultation. In the meantime, the BIAC Development Task Force will discuss the PFI revision in its meeting on November 6.
BIAC Raises Concerns about Threats to Investment
On multiple occasions, BIAC emphasized the importance of OECD’s ground-breaking work on fostering an open and conducive investment climate as a fundamental prerequisite for job creation and economic growth. At the same time, business observes a proliferation of restrictions on Foreign Direct Investment (FDI) as well as worrying developments in the area of investment protection. Of particular concern to business is that Bilateral Investment Treaties (BITs) and Investor-State Dispute Settlement (ISDS), which are crucial to mitigate risk in international investment decisions, have come increasingly under attack. Business needs the OECD to provide governments with objective and fact-based analysis, foster dialogue among member and non-member countries and highlight the importance of adequate protection of investments as a priority.
BIAC raised these concerns during its consultation with the OECD Investment Committee in October and will reiterate them at the annual consultation with OECD Ambassadors in January. In October, the chair of the BIAC Investment Committee also represented BIAC at the UNCTAD World Investment Forum, highlighting BIAC’s concern in the session on reform of the international investment agreement system and ISDS. BIAC will continue to urge the OECD to address and underline the importance of investment protection and market openness as priorities for growth and development.
Staff contact: Eva Hampl