The PFI User’s Toolkit supports the implementation of the PFI. For each question in each of the ten policy chapters, the Toolkit provides:

  • an explanation of how policies, laws and regulations influence investor decisions;
  • advice in analysing the most significant investment bottlenecks which is essential when setting priorities for reform;
  • specific detail on what constitutes good policy and practices in the areas that bear on the investment climate;
  • information that PFI users need to scrutinise in order to assess how their country or region performs vis-à-vis good practice;
  • help in designing policy and practices which improve the balance between policy objectives and take into account the impact of policy decisions on investment conditions and the wider national interest;
  • methodologies for measuring progress in improving investment conditions; and
  • links to websites and references to a wealth of additional information and tools that offer more in-depth policy guidance for each PFI question.


Who will find this Toolkit useful?

The PFI is a flexible instrument and hence this Toolkit has been designed to meet the needs of multiple PFI applications. Governments might use the Toolkit to assist in any of the following:

  • in-depth self-assessments by a country or region of its policies for investment; 
  • peer reviews of the investment climate at the national or provincial level; 
  • an examination of how policies and practices in a selected area bear on the investment climate;
  • thematic investment climate assessments, such as an evaluation of how to mobilise investment by SMEs;
  •  public-private dialogue on investment issues involving all stakeholders;
  • a tool for bilateral and multilateral development agencies funding aid programmes in this area; and
  • communication of reform efforts.


How to use this Toolkit

There is no blueprint for mobilising investment. PFI users have to develop their own strategy, based on their institutional capacity and specific economic context, and tailored to their needs and resources.

So many policies and practices in so many areas can affect investment conditions that the Toolkit cannot address each policy domain in detail. Users of the Toolkit will find links and references to a wealth of additional tools and resources that provide more in-depth policy guidance in areas such as tax administration, fighting corruption and on issues such as creating an investment promotion agency. The Toolkit is similar to a knowledge library and should be used accordingly.

Not all PFI users will need to use each part of the Toolkit and every chapter of the policy guidance. For example, countries that use the PFI on a regular basis and have determined where priorities for reform lie are likely to focus only on a few specific areas of the Toolkit’s policy guidance. And not every PFI application will wish to score how it is performing.

The modular approach of the Toolkit’s design enables users to access only those parts that are necessary to their PFI application. At a minimum, this will typically involve reading the introduction to the policy chapter section and then the chosen policy chapters. The modular approach implies some necessary repetition.