22 April 2015
OECD Advances Reforms on Policy Framework for Investment
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A one-day meeting of the World Bank Group and Organisation for Economic Co-operation and Development (OECD) concluded with a renewed commitment to reforming the investment climate, as the OECD's process for updating its Policy Framework for Investment (PFI) nears completion.

OECD20 April 2015: A one-day meeting of the World Bank Group and Organisation for Economic Co-operation and Development (OECD) concluded with a renewed commitment to reforming the investment climate, as the OECD’s process for updating its Policy Framework for Investment (PFI) nears completion.

The OECD Ministerial Council Meeting in 2006 endorsed the PFI as a framework that countries and donors can use to support dialogue on international investment, cooperation and reform, with the aim of promoting responsible business conduct, inclusive growth and sustainable development. The PFI identifies issues for policy makers in areas including investment, competition, tax, corporate governance, anti-corruption measures, public governance and other matters affecting the business climate. Regional organizations, such as the Association of Southeast Asian Nations (ASEAN) and the Southern African Development Community (SADC), have used the PFI for conducting policy reviews and supporting the development of common regional standards.

To ensure the PFI addresses the current global policy landscape and investment conditions, in March 2014 the OECD began a process of updating the PFI, in consultation with governments, business, organized labor and NGOs. The revision has addressed issues including: tax and investment incentives; green investment; local and state government conditions; and specific contexts such as agriculture and extractive industries. Public consultations took place online and face-to-face, including meetings with the EU in Brussels, the Global Business Alliance in New York, and several regional discussions.

The 20 April 2015 meeting of the World Bank Group and the OECD, in Washington DC, US, on the theme ‘From Investment Policy Design to Implementation: Making Investment Climate Reforms Happen’ addressed ways to foster synergies between the PFI and the World Bank Group’s Trade & Competitiveness Global Practice. It was the last in a series of consultations toward finalizing the PFI update. The updated PFI text will be presented at the OECD Ministerial Council Meeting taking place in June 2015.

The PFI update process is co-chaired by Okko-Pekka Salmimies (Finland) and Aung Naing Oo (Myanmar), from an OECD and non-OECD country, respectively. [OECD Webpage on PFI Update] [Concept Note for Updating the Policy Framework for Investment (July 2014)]

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