Friday, January 28, 2011

New investment policy

At least 27 countries introduced new national investment policy measures during October 1, 2010 to January 15, 2011, according to the Investment Policy Monitor.
At the international level, 58 economies concluded 32 new international investment agreements (IIAs), including 23 double taxation treaties (DTTs), five bilateral investment treaties (BIT), and four other IIAs, said the fourth Investment Policy Monitor published by the UNCTAD today.
The Monitor finds there is an ongoing trend towards rebalancing the rights and obligations of private investors with those of the State. This is apparent in stronger regulation of individual industries and an increase in State ownership or control in areas of strategic importance. State influence has also grown in the aftermath of the financial crisis.
At November’s G-20 Seoul Summit, political leaders confirmed their commitment to resisting investment protectionism with a view to generating strong, sustainable, and balanced growth. Effective investment policy making is even more important in light of today’s global investment trends, the Monitor said.
Industrial production and trade have recovered to the pre-crisis levels, but foreign direct investment (FDI) and employment are lagging behind. The Monitor says policy makers need to identify ways and means to encourage private investment to sustain the economic recovery.

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