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investment promotion

Do Investment Promotional Agencies Leave Investors Out in the Cold?

Paul Barbour's picture

This week, the World Bank Group’s Investment Climate Department hosted a stimulating discussion on the credit: Johanna Ljungblomeffectiveness of Investment Promotion Agencies (IPAs). The panel discussion coincided with the launch of the Investment Climate Department’s report on IPAs across the globe.  MIGA co-sponsored the report and pioneered its methodology. 

First, the bad news. This report makes for quite depressing reading for this startling finding: overall, the responsiveness of investment promotion intermediaries to investor inquiries is low, with 80% of IPAs not responding to sector-specific investor inquiries. This means that 80% of these organizations did not return a phone call or email from a foreign direct investment (FDI) “mystery shopper.” This translates to missed investment opportunities that are particularly needed now as the competition for FDI is so fierce.