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Foreign direct investment (FDI) is widely considered to be a key factor in economic development in middle and low income countries. Positively, it can be associated with the introduction of new technologies, job creation, access to new markets and improvements in the competitiveness of host countries. But too often, FDI has been associated with environmental degradation, increased inequality, and lack of integration with the local economy. A number of host country government departments have a role in influencing the overall investment climate. Among them, Investment Promotion Agencies (IPAs) are often players because they are in the front line of targeting investors and marketing the country as a whole.
This book brings together a series of papers identifying opportunities for IPAs to attract FDI that is associated with positive contributions to sustainable development and good corporate social responsibility practices. The papers are written by IIED researchers and other sectoral experts, multilateral organizations working closely with IPAs in attracting FDI, and representatives of IPAs themselves. The book points to a number of opportunities for IPAs in attracting FDI with good CSR practices and highlights key leverage points and practical tools to achieve this. It is intended to provide a primer for investment promotion agencies and pointers for approaches that could be deployed in the future.