Investment Policy Reviews

http://unctad.org/en/Docs/iteipcmisc20031_en.pdf

About
The Investment Policy Review (IPR) programme provides developing countries and countries with economies in transition concrete recommendations to improve policies, strategies and institutions for attracting foreign direct investment (FDI) and deriving greater benefits for sustainable development.
The IPR process is country-specific and involves:
1. the review of the policy, regulatory and institutional environment for investment;
2. the identification of strategic investment priorities consistent with the Sustainable Development Goals (SDGs) and in line with the national development objectives; and
3. a set of concrete recommendations.
Follow-up support to foster the integration of the IPR recommendations into the country’s reform agenda and their implementation is provided as part of the review process.
UNCTAD has undertaken IPRs in more than 50 countries since 1999 and the implementation of IPR recommendations has had significant impact in their business climate. As shown by the World Bank’s Doing Business Indicators, out of the top 10 reformers among developing countries, half were IPR countries each year between 2013 and 2015.The FDI performance by country also suggests a positive impact. Out of 32 countries for which the IPR was published more than three years ago, 29 have experienced an increase in FDI inflows in the following years. And for 19 of them, such increases have been dramatic, with FDI inflows having more than doubled.

For further information please contact Chantal Dupasquier, Chief, Investment Policy Review Section at: Chantal.Dupasquier@unctad.org.
Methodology

Disclaimer: the boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations.

Nepal

Nepal had attracted modest FDI in niche sectors such as tourism, light manufacturing (apparel) and mineral deposits (lime stone). Investment was mainly in low-technology, labour-intensive production. The impact of FDI had also been modest, primarily in job creation. While the FDI laws were liberalized in 1992, there were still obstacles that investors faced.

The challenge for Nepal was to put in place an investor-friendly business climate that would complement its small bureaucracy. The IPR considered how Nepal could improve its FDI performance. It noted that Nepal could attract more FDI to niche sectors such as tourism and the production of herbs, with special investment packages.

Nepal would have to be proactive to derive further advantage from its Trade Treaty with India and its LDC trade preferences with developed countries. Improvement in the human resource base was needed in order to attract high-technology FDI.

Other reports: Investment Guide to Nepal

Download Investment Policy Review
Download Implementation Report

About
The Investment Policy Review (IPR) programme provides developing countries and countries with economies in transition concrete recommendations to improve policies, strategies and institutions for attracting foreign direct investment (FDI) and deriving greater benefits for sustainable development.
The IPR process is country-specific and involves:
1. the review of the policy, regulatory and institutional environment for investment;
2. the identification of strategic investment priorities consistent with the Sustainable Development Goals (SDGs) and in line with the national development objectives; and
3. a set of concrete recommendations.
Follow-up support to foster the integration of the IPR recommendations into the country’s reform agenda and their implementation is provided as part of the review process.
UNCTAD has undertaken IPRs in more than 50 countries since 1999 and the implementation of IPR recommendations has had significant impact in their business climate. As shown by the World Bank’s Doing Business Indicators, out of the top 10 reformers among developing countries, half were IPR countries each year between 2013 and 2015.The FDI performance by country also suggests a positive impact. Out of 32 countries for which the IPR was published more than three years ago, 29 have experienced an increase in FDI inflows in the following years. And for 19 of them, such increases have been dramatic, with FDI inflows having more than doubled.

For further information please contact Chantal Dupasquier, Chief, Investment Policy Review Section at: Chantal.Dupasquier@unctad.org.
Methodology

Disclaimer: the boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations.