Cadre d’action pour l’investissement : un panorama des bonnes pratiques.

262 Pages·2006·2.217 MB·English

by  OECD

Policy Framework for Investment
A REVIEW OF GOOD PRACTICES
Policy Framework
The objective of the Policy Framework for Investment is to mobilise private investment that supports
steady economic growth and sustainable development. It thus aims to contribute to the prosperity of for Investment
countries and their citizens as well as to support the fight against poverty. The Framework proposes a
set of questions for governments to consider in ten policy fields identified in the Monterrey Consensus
as critically important for improving the quality of a country’s environment for investment, including
A REVIEW OF GOOD
by small enterprises and foreign investors. Its core purpose is to encourage policy makers to ask
appropriate questions about their economy, their institutions and their policy settings in order to
PRACTICES
identify their priorities, to develop an effective set of policies and to evaluate progress.
This Review of Good Practices in OECD and non-OECD economies is published as a companion
volume to the Framework and provides analytical background material on each of the ten chapters of
the Framework.
The full text of this book is available on line via these links: P
o
http://www.sourceoecd.org/finance/9264025863 lic
http://www.sourceoecd.org/development/9264025863 y
F
Those with access to all OECD books on line should use this link: r
a
http://www.sourceoecd.org/9264025863 m
e
SourceOECD is the OECD’s online library of books, periodicals and statistical databases. For more information w
o
about this award-winning service and free trials ask your librarian, or write to us at [email protected]. r
k
f
o
r
In
v
e
s
t
m
e
n
t
A
R
E
V
IE
W
O
F
G
O
O
D
P
R
A
C
T
IC
E
S
wwwwww..ooeeccdd..oorrgg
ISBN 92-64-02586-3 --::HHSSTTCCQQEE==UUWWUZU]][Z]::
20 2006 02 1 P

Policy Framework
for Investment
A REVIEW OF GOOD PRACTICES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
ORGANISATION FOR ECONOMIC CO-OPERATION
AND DEVELOPMENT
The OECD is a unique forum where the governments of 30 democracies work together to
address the economic, social and environmental challenges of globalisation. The OECD is also at
the forefront of efforts to understand and to help governments respond to new developments and
concerns, such as corporate governance, the information economy and the challenges of an
ageing population. The Organisation provides a setting where governments can compare policy
experiences, seek answers to common problems, identify good practice and work to co-ordinate
domestic and international policies.
The OECD member countries are: Australia, Austria, Belgium, Canada, the Czech Republic,
Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea,
Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic,
Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The Commission of
the European Communities takes part in the work of the OECD.
OECD Publishing disseminates widely the results of the Organisation’s statistics gathering and
research on economic, social and environmental issues, as well as the conventions, guidelines and
standards agreed by its members.
This work is published on the responsibility of the Secretary-General of the OECD. The
opinions expressed and arguments employed herein do not necessarily reflect the official
views of the Organisation or of the governments of its member countries.
Also available in French under the title:
Cadre d’action pour l’investissement
UN PANORAMA DES BONNES PRATIQUES
© OECD 2006
No reproduction, copy, transmission or translation of this publication may be made without written permission. Applications should be sent to
OECD Publishing: [email protected] or by fax [phone]. Permission to photocopy a portion of this work should be addressed to the Centre
français d'exploitation du droit de copie, 20, rue des Grands-Augustins, 75006 Paris, France ([email protected]).
FOREWORD
Foreword
T
he Policy Framework for Investment: A Review of Good Practices is published as a
companion volume to the Policy Framework for Investment. It reproduces the analytical
background reports which supported the development of the ten chapters of the Framework. The
objective of the Policy Framework for Investment is to mobilise private investment that supports
economic growth and sustainable development. It thus aims to contribute to the prosperity of
countries and their citizens and the fight against poverty.
Drawing on good practices from OECD and non-member economies, the Framework proposes
guidance in ten policy fields identified in the 2002 United Nations Monterrey Consensus on Financing
for Development as critically important for improving the quality of a country’s environment for
investment. It enables policy makers to ask appropriate questions about their economy, their
institutions and their policy settings in order to identify priorities, to develop an effective set of
policies and to evaluate progress.
The Framework was developed by OECD and non-member participants in a task force
established under the aegis of the OECD Investment Committee as part of the OECD Initiative on
Investment for Development launched in Johannesburg in November2003.
The Framework was adopted and declassified by the OECD Council, the governing board of the
Organisation, and welcomed by Ministers at their annual OECD meeting in May2006. The OECD
and its non-member partners will continue to work together, in co-operation with the World Bank,
the United Nations and other interested institutions and with the active engagement of business,
labour and other civil society organisations, to support effective use and future development of the
Framework.
POLICY FRAMEWORK FOR INVESTMENT: A REVIEW OF GOOD PRACTICES – ISBN 92-64-02586-3 – © OECD 2006 3
How the Policy Framework for Investment
and the Review of Good Practices were developed
The task force which developed the Framework consisted of officials from some
60governments. In addition to the 30member countries, non-OECD economies who
participated in the task force's meetings were Argentina, Bahrain, Brazil, Chile, China,
Chinese Taipei, Egypt, Estonia, India, Indonesia, Israel, Jordan, Latvia, Lithuania, Malaysia,
Morocco, Mozambique, Pakistan, Philippines, Romania, Russian Federation, Senegal,
Slovenia, South Africa, Tanzania and Viet Nam. Chile (Mr. Luis Eduardo Escobar, Senior
Advisor to the Finance Minister) and Japan (Mr. Shuichiro Megata, Deputy Permanent
Representative of Japan to the OECD) chaired jointly the task force. Together with the
Investment Committee, nine other OECD bodies were involved in developing the
Framework and in reviewing individual chapters of the Review of Good Practices: the
Development Assistance Committee, the Trade Committee, the Competition Committee,
the Committee on Fiscal Affairs, the Steering Group on Corporate Governance, the
Education Committee, the Employment, Labour and Social Affairs Committee, the Working
Group on Bribery in International Business Transactions, and the Public Governance
Committee.
The World Bank, UNCTAD and other international organisations participated in task
force meetings and discussions of the Review's individual chapters. The Business and
Industry Advisory Committee (BIAC), the Trade Union Advisory Committee (TUAC) and
representatives of non-governmental organisations also participated in these discussions
and made submissions. The task force conducted broader public consultations on the
Framework, as well as the Review's chapters, under the auspices of the OECD Global Forums
on International Investment held in India and Brazil, and of OECD and other regional
investment initiatives.
The Review of Good Practices was finalised under the OECD Secretariat's responsibility.
Co-ordinated by Michael Gestrin and Jonathan Coppel of the Investment Division headed
by Pierre Poret, in the Directorate for Financial and Enterprise Affairs, the Review was
prepared by: for the investment policy and investment promotion and facilitation
chapters, Michael Gestrin; for the trade policy chapter, Dale Andrew, Jonathan Gage and
Sebastien Miroudot; for the competition policy chapter, Michael Gestrin, Patricia Heriard-
Dubreuil and Jeremy West; for the tax policy chapter, Steven Clark; for the corporate
governance chapter, Daniel Blume; for the responsible business conduct chapter, Kathryn
Gordon; for the human resource development and infrastructure and financial sector
development chapters, Jonathan Coppel; and for the public governance chapter, Janos
Bertok, Elodie Beth, Nicola Ehlermann-Cache, Josef Konvitz, Delia Rodrigo and Christian
Vergez. The World Bank contributed background material on human resource
development and infrastructure and financial sector development.
TABLE OF CONTENTS
Table of contents
Chapter 1. Investment Policy................................................................................................ 11
1.1. Introduction............................................................................................................. 12
1.2. Transparency........................................................................................................... 12
1.3. Protection of property and contractual rights.................................................... 17
1.3.1. The promotion and protection of physical property rights ................. 17
1.3.2. The promotion and protection of intellectual property rights ............ 19
1.3.3. Contract enforcement ................................................................................ 21
1.3.4. Timely and adequate compensation for expropriation ........................ 23
1.4. The international dimension of investment policy .......................................... 24
1.4.1. Non-discrimination .................................................................................... 24
1.4.2. Making the most of international investment agreements ................. 27
Notes................................................................................................................................... 30
References and Further Policy Resources ..................................................................... 30
Chapter 2. Investment Promotion and Facilitation........................................................... 33
2.1. Introduction............................................................................................................. 34
2.2. Strategic investment promotion: the overall framework................................. 34
2.3. The investment promotion agency...................................................................... 35
2.3.1. Characteristics of a successful IPA .......................................................... 36
2.3.2. Investment facilitation and the one-stop shop ..................................... 37
2.3.3. Image building ............................................................................................ 39
2.3.4. Policy advocacy ........................................................................................... 40
2.3.5. Investment promotion through specific incentives .............................. 41
2.3.6. Facilitating linkages ................................................................................... 43
2.4. International co-operation for investment promotion and facilitation......... 44
2.4.1. IPA capacity building ................................................................................. 45
2.4.2. Promoting linkages ..................................................................................... 47
2.5. Conclusion............................................................................................................... 48
Notes................................................................................................................................... 48
References and Further Policy Resources ..................................................................... 49
Annex 2.A1. The Istanbul Ministerial Declaration on Fostering the Growth
of Innovative and Internationally Competitive SMEs – Excerpts ........ 51
Chapter 3. Trade Policy.......................................................................................................... 53
3.1. Introduction............................................................................................................. 54
3.2. The changing interrelationships of trade, domestic investment and FDI...... 54
3.3. The investment impact of trade policies ........................................................... 57
3.3.1. Trade policy in the host country affecting imports ............................... 57
3.3.2. Trade policy in host country affecting exports ...................................... 65
3.3.3. Trade policy in the home country affecting imports ............................ 69
POLICY FRAMEWORK FOR INVESTMENT: A REVIEW OF GOOD PRACTICES – ISBN 92-64-02586-3 – © OECD 2006 5
TABLE OF CONTENTS
3.3.4. Trade policies in the home country affecting exports .......................... 74
Notes................................................................................................................................... 75
References and Further Policy Resources ..................................................................... 76
Annex 3.A1. Framework Considerations for measuring
the Effectiveness of Trade Policies and “Good Practices” ..................... 78
Annex 3.A2. Benchmark Indices for Evaluating Trade Policy .................................... 87
Chapter 4. Competition Policy.............................................................................................. 89
4.1. Introduction............................................................................................................. 90
4.2. The relationship between competition policy and an attractive
environment for investment................................................................................. 91
4.2.1. Competition policy within the broader governance framework ......... 91
4.2.2. Anti-competitive practices that inhibit investment ............................. 92
4.2.3. Open trade and investment regimes can significantly reduce
barriers to entry .......................................................................................... 94
4.2.4. Barriers to entry associated with FDI ...................................................... 94
4.3. Conclusion .............................................................................................................. 99
Notes................................................................................................................................... 100
References and Further Policy Resources ..................................................................... 101
Chapter 5. Tax Policy.............................................................................................................. 103
5.1. Introduction............................................................................................................. 104
5.2. Tax policy and development................................................................................. 105
5.3. Taxation and investment – what are the linkages?........................................... 106
5.3.1. Direct effects of taxation on investment ................................................ 107
5.3.2. Budget effects of taxation on investment ............................................... 107
5.4. Taxation and investment – A review of main considerations......................... 108
5.4.1. Comparative assessment of the tax burden on business income ....... 108
5.4.2. Determination of taxable business income ............................................ 116
5.4.3. Prudent use of targeted tax incentives .................................................... 117
5.4.4. Tax expenditure reporting and evaluation ............................................. 120
5.4.5. International co-operation ........................................................................ 121
Notes................................................................................................................................... 122
References and Further Policy Resources ..................................................................... 123
Chapter 6. Corporate Governance........................................................................................ 125
6.1. Introduction............................................................................................................. 126
6.2. The role of corporate governance in achieving an attractive investment
environment............................................................................................................ 127
6.3. Key elements of a corporate governance framework........................................ 129
6.4. Corporate governance of state-owned enterprises............................................ 137
Notes................................................................................................................................... 140
References and further policy resources ...................................................................... 141
Annex 6.A1. The OECD Principles of Corporate Governance ..................................... 143
Chapter 7. Policies for Promoting Responsible Business Conduct................................. 149
7.1. Introduction............................................................................................................. 150
7.2. Clear separation of government and business roles ........................................ 150
7.2.1. Business roles ............................................................................................. 151
7.2.2. Government roles ...................................................................................... 151
6 POLICY FRAMEWORK FOR INVESTMENT: A REVIEW OF GOOD PRACTICES – ISBN 92-64-02586-3 – © OECD 2006
TABLE OF CONTENTS
7.2.3. Trade union, NGO and other civil society roles .................................... 151
7.3. Promoting effective two-way communication: law-making and other
forms of dialogue.................................................................................................... 152
7.3.1. Law-making ................................................................................................ 152
7.3.2. Other channels for communication ........................................................ 153
7.4. Providing an adequate framework for corporate disclosure............................ 154
7.5. Enlisting business as a partner in the legal and regulatory system................ 156
7.5.1. Investing in management capabilities .................................................... 156
7.5.2. Acknowledging and supporting private initiatives ............................... 157
7.5.3. Promoting voluntary compliance – personal conviction and
informal peer pressure............................................................................... 158
7.6. Strengthening the business case for responsible business conduct............... 159
7.7. Intergovernmental co-operation.......................................................................... 160
Notes................................................................................................................................... 161
References and Further Policy Resources ..................................................................... 162
Annex 7.A1. Extracts from the Report to OECD Ministers by the Investment
Committee on “Private Initiatives for Corporate Responsibility”
[C/MIN(2001)4] ............................................................................................. 163
Annex 7.A2. Declaration on International Investment and Multinational
Enterprises ................................................................................................... 165
Annex 7.A3. The OECD Guidelines for Multinational Enterprises: Text
and Implementation Procedures .............................................................. 167
Chapter 8. Human Resource Development Policy............................................................. 183
8.1. Introduction............................................................................................................. 184
8.2. Human resource development promotes investment: the overall
relationship.............................................................................................................. 184
8.3. Fostering a skilled and healthy workforce: a public and private partnership.... 185
8.3.1. Start with the basics .................................................................................. 185
8.3.2. Ensure appropriate economic incentives to acquire a higher formal
education ..................................................................................................... 186
8.3.3. Training helps business to stay competitive .......................................... 189
8.3.4. Population health matters for investment decisions
and performance ........................................................................................ 191
8.3.5. Bolster – don’t undermine – a competitive labour climate .................. 193
8.4. Reaping the maximum benefit from investment: the role of human
resource development in facilitating adjustment.............................................. 197
8.4.1. Policies to cushion transition costs ........................................................ 198
8.4.2. Maintaining an adaptable workforce ...................................................... 199
8.5. Conclusion............................................................................................................... 200
Notes................................................................................................................................... 200
References and Further Policy Resources ..................................................................... 201
Chapter 9. Infrastructure and Financial Sector Development......................................... 205
9.1. Introduction............................................................................................................. 206
9.2. Common challenges in physical infrastructure ................................................ 207
9.3. Infrastructure: connecting firms and expanding opportunities
for investment......................................................................................................... 212
POLICY FRAMEWORK FOR INVESTMENT: A REVIEW OF GOOD PRACTICES – ISBN 92-64-02586-3 – © OECD 2006 7
TABLE OF CONTENTS
9.3.1. Telecommunications – competition makes the difference .................. 213
9.3.2. Electricity – competition is not as easy but possible ............................. 214
9.3.3. Transport – the dwindling importance of distance ............................... 216
9.3.4. Financing investment in water ................................................................ 220
9.3.5. Financial services: a special form of infrastructure .............................. 221
Notes................................................................................................................................... 227
References and Further Policy Resources ..................................................................... 228
Chapter 10. Public Governance............................................................................................... 233
10.1. Introduction: the relationship between public governance
and investment....................................................................................................... 234
10.1.1. Context for reform .................................................................................... 235
10.2. Regulatory quality................................................................................................... 236
10.2.1. Regulatory policy ....................................................................................... 237
10.2.2. Regulatory institutions ............................................................................. 238
10.2.3. Regulatory tools: Regulatory Impact Assessment (RIA) ....................... 240
10.2.4. Consultation mechanisms ....................................................................... 242
10.2.5. Administrative simplification and responsiveness ............................. 243
10.2.6. International co-operation on regulatory reform ................................. 244
10.3. Fostering public sector integrity .......................................................................... 245
10.3.1. Implementing international anti-corruption and integrity
standards ................................................................................................... 245
10.3.2. Application and enforcement of international anti-corruption
and integrity standards ........................................................................... 247
10.3.3. Role of internal and external reviews .................................................... 249
10.3.4. Ensuring compliance through monitoring and international
co-operation .............................................................................................. 249
Notes................................................................................................................................... 251
References and Further Policy Resources ..................................................................... 252
Annex 10.A1. The APEC-OECD Integrated Checklist on Regulatory Reform ............ 253
Annex 10.A2. Identifying and Managing Conflict of Interest ..................................... 256
Boxes
1.1. The OECD Framework for Investment Policy Transparency................................. 13
1.2. Transparency and predictability in investment policy: from principles
to action........................................................................................................................ 16
1.3. Thailand’s 20-year program to title rural land........................................................ 19
1.4. The benefits of intellectual property rights in developing countries:
the shifting debate....................................................................................................... 20
1.5. The evolution of the expropriation issue in international law............................. 23
1.6. Non-discrimination in international agreements................................................... 26
1.7. Performance requirements in international agreements...................................... 28
2.1. Easing business registration requirements.............................................................. 38
2.2. Uganda: from pariah to paragon............................................................................... 39
2.3. The OECD Checklist for FDI Incentive Policies........................................................ 42
2.4. MIGA’s Investment Promotion Toolkit..................................................................... 45
3.1. Ireland’s National Linkage Programme succeeded at a critical time................... 56
3.2. Chile’s tariffs: uniform and signalling with scheduled reductions...................... 59
8 POLICY FRAMEWORK FOR INVESTMENT: A REVIEW OF GOOD PRACTICES – ISBN 92-64-02586-3 – © OECD 2006