Facility for Investment Climate Advisory Services 2017-21

Non-transparent administrative processes and enforcement of regulations deter firm creation, investment, and productivity. As a consequence, developing country governments face increasing pressure to improve their regulatory frameworks and accountability of how reforms are implemented. Furthermore, developing economies need support and proactive investment at the sector and firm level to achieve sustainable growth. Last yet importantly, many developing economies underperform due to constraints on competition in domestic markets even though they have opened up to trade and improved their business environment. Hence, competition policies need to be improved in order to foster well-functioning markets and enhance productivity.

In the FY 2017-2021 strategy cycle, FIAS-supported work will fall into three strategic pillars:

i) Reform of regulations and policies that govern the business environment such as construction permits, property registration, insolvency regimes, etc.. This will reduce the cost and the time companies have to spend to start and licence a new business. Eventually, this will reduce uncertainty and lead to further investments.

ii) Expand market opportunities by lowering the legal barriers businesses face when they enter a new market or when they want to invest.

iii) Strengthen firm competitiveness through policies that help companies invest in improved products, to make use of climate-efficient technologies, and to modernize production processes. Job opportunities will follow if labor markets can supply the necessary skills.

The three pillars will be reinforced by four cross-cutting themes: Gender and inclusion- transparency- green competitiveness- and targeting high-growth businesses.

A more transparent, conducive and predictable business environment.

Improved firm productivity, competitiveness and market access.

Increased investment.

Risultati principali attesi:  

Strengthened institutional capacities (e.g. better enforcement of contracts).

Reduced business and investment costs.

More competitive sectors (& spillovers).

Enhanced competition policies and systems.

Increased value addition to local suppliers.

Improved government-to-business services (e.g. facilitated firm registration).

Enhanced public-private dialogue.

Improved support services for innovative SMEs and entrepreneurship.

Risultati fasi precedenti:  

FIAS track record is impressive: Over the FY 2012-2016 strategy cycle, FIAS has generated nearly USD 3 billion in private investment, USD 193 million in compliance cost savings, and 265 investment climate reforms in 75 client countries, thereby largely exceeding the original five-year targets.

Fase 3 01.07.2016 - 30.06.2021   (Completed)