The Policy Framework for Investment (PFI) is the most comprehensive and systematic approach for improving investment conditions ever developed. It covers 10 policy areas and addresses some 82 questions to governments to help them design and implement policy reform to create a truly attractive, robust and competitive environment for domestic and foreign investment.
The 10 policy areas are widely recognised, including in the Monterrey Consensus, as underpinning a healthy environment for all investors, from small- and medium-sized firms to multinational enterprises.
The PFI is neither prescriptive nor binding. It emphasises the fundamental principles of rule of law, transparency, non-discrimination and the protection of property rights but leaves for the country concerned the choice of policies, based on its economic circumstances and institutional capabilities. One size does not fit all.
Although addressed to governments, the PFI needs to be seen in the broader context of other converging international initiatives to improve the investment climate, including the OECD Guidelines for Multinational Enterprises.
Who uses the PFI?
With its broad horizontal approach, the PFI assists governments engaged in domestic reform, regional co-operation or international policy dialogue on investment. It also serves as a reference point for investment promotion agencies, donors as they assist recipient country partners in improving the investment climate, and businesses, trade unions, and NGOs in their dialogue with governments.
Developed by a task force representing some 60 economies, as well as business, labour, civil society and international organisations, the PFI is a flexible instrument that governments can adapt to their specific circumstances, objectives and needs while at the same time providing a common platform for dialogue and peer learning. The flexibility is evident in the variety of ways governments are using the PFI:
- OECD Investment Policy Reviews of China, Colombia, Egypt, India, Indonesia, Malaysia, Myanmar, Peru, Russia, Ukraine, Viet Nam and Tunisia have been structured to varying degrees along the lines of the PFI.
- The Investment Reform Index (IRI) of the Investment Compact for Southeast Europe applies the PFI to measure and communicate progress on investment climate policy reforms.
- In the Middle East and North Africa, under the MENA-OECD investment programme, participating countries using the PFI to develop and implement business climate development strategies which measure the process of investment policy reform.
- African and Asian countries are using the PFI to conduct investment policy reviews within the framework of the NEPAD-OECD Africa Investment Initiative and the ASEAN-OECD Investment Initiative.
- In Latin American and the Caribbean, a programme based on the PFI was launched in 2010 to increase the contribution of private investment to economic and social development in the region.
Text of the PFI
Japanese (preamble and questions only)
PFI User's Toolkit
This Toolkit was developed to help governments use the PFI. It provides specific and practical implementation guidance in the 10 policy areas of the PFI.
Documents and Links
Policy Framework for Investment: A Review of Good Practices, OECD 2006 [ English | French ]
Policy Brief on the PFI [ English | French ]
How the PFI was developed