The 8 PFI questions on investment policy relate to:
Investment policy in the PFI relates to a country’s laws, regulations and practices that directly enable or discourage investment and that enhance the public benefit from investment. It covers, for instance, policies for transparent and non-discriminatory treatment of investors, expropriation and compensation laws and dispute settlement practices.
The quality of a country’s investment policies directly influences the decisions of investors, be they small or large, domestic or foreign. Transparency, property protection and non-discrimination are core investment policy principles that underpin efforts to create a quality investment environment for all.
Investors are also concerned with the way that investment policy is formulated and changed. They will avoid circumstances where policies are modified at short notice, where governments do not consult with industry on proposed changes and where laws, regulations and procedures are not clear, readily available and predictable.
The PFI Investment Policy chapter identifies through eight questions the most important issues relevant for judging the effectiveness of a country’s investment policies and practices. The issues are often directly relevant to the specific needs of foreign investors, but they apply in most instances to domestic investors as well. This section of the Toolkit offers additional detail on why these investment policy questions are important, and specific guidance on the topics to scrutinise in order to form an opinion on how well a country’s investment policies perform vis-à-vis good practices.