The evidence shows that foreign direct investment (FDI) can generate not only capital and revenue, but also jobs, knowledge, technology, competitiveness, innovation, upgrading and especially inclusive, sustainable and responsible growth.

Yet none of this is automatic. It depends on creating the right business environment and regulatory frameworks, underpinned by international agreements, national policies, domestic procedures and specific measures. In addition, in recent times geo-economic competition and technological change pose new and growing challenges to these benefits.

The Global Investment Policy and Practice Initiative brings together business and government to address these challenges and unlock the potential of investment, informed by experts, experience and evidence. This is achieved by reforming existing rules, creating new international frameworks, identifying supportive policies and measures, and implementing these in practice through in-country projects.

Projects are under way in Azerbaijan, Cyprus, Oman, Pakistan and Rwanda, and have been completed in Brazil, Cambodia, Ghana, India, Kenya, Namibia, and Papua New Guinea.

There are 4 sub-groups:

1. Investment facilitation: What are the most important investment facilitation measures to include in international frameworks, including a Draft WTO Agreement on Investment Facilitation for Development, and how can this agreement improve investment climates? Estimates by the German Institute of Development and Sustainability place the potential global welfare gains at between 3-4%.

2. Sustainable investment and Climate FDI: What are the most important policies and measures to advance the sustainable development impact of investment flows? How can FDI help achieve climate goals?

3. Digital FDI: What are the policy and regulatory enablers to attract FDI to grow the digital economy, whether growing new digital activities, encouraging digital transformation or providing digital infrastructure?

4. Outward FDI: How can policymakers work with firms to identify policies and measures that support outward investment while maximizing benefits for both home and host economies?

A World Investment for Development Alliance (WIDA) was launched in Davos as a mechanism to grow cooperation and collaboration.