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Key Highlights from the UN Trade and Development Investment Policy Monitor on The Evolution of Investment Laws: Trends and Insights

By December 19, 2024No Comments

We are pleased to share with you the latest Investment Policy Monitor (No. 29) on Investment laws: key trends and developments, released by UN Trade and Development. Based on the analysis of the investment laws catalogued in the Investment Laws Navigator , this report highlights critical developments in investment laws worldwide, reflecting how they have evolved to address changing national and international priorities. The findings offer valuable insights into trends shaping investment policy frameworks and their alignment with sustainable development goals.

Key Insights from the Report:

  • Widespread Adoption of Investment Laws Investment laws are now in effect across 130 economies, with Africa and Asia leading the way. In these regions, 93% and 79% of countries, respectively, have enacted investment laws. Notably, 47 laws were adopted or replaced in the past decade alone.
  • Rising Focus on Sustainability A growing trend in investment laws is the inclusion of sustainability objectives. Since 2015, 40% of new investment laws include sustainability-related provisions, a significant rise compared to just 5% before 1995. These provisions address key issues like environmental protection, labor standards, and corporate social responsibility.
  • Balancing Investor Rights and Obligations Newer investment laws place greater emphasis on balancing investor benefits with responsibilities. In the last decade, 57% of laws included obligations related to environmental, labor, and CSR standards, compared to only 14% before 1995.
  • Investment Incentives Aligned with Development Goals The use of investment incentives has grown substantially, with 81% of laws enacted since 2015 featuring such measures. Importantly, many of these incentives are tied to development objectives, including job creation, regional development, and green initiatives.
  • Enhanced Investment Facilitation Investment facilitation measures are becoming increasingly common. Globally, nearly 50% of investment laws incorporate facilitation provisions, rising to two-thirds in Africa. Key measures include one-stop shops, permitting support, land access, and dispute prevention mechanisms.
  • Shifts in Dispute Resolution Reflecting broader trends in international investment agreements, provisions granting consent to investor-State arbitration have declined, appearing in only 25% of laws adopted in the last decade (down from over half previously). Conversely, provisions designating domestic courts for dispute resolution have increased, now present in over two-thirds of recent laws.

Looking Ahead: Priorities for Policymakers The report underscores the need for the continued evolution and reform of investment laws to address emerging challenges, including climate change, technological disruptions, and shifting economic landscapes. Policymakers are encouraged to develop adaptive frameworks that attract investment while aligning with sustainable development goals and ensuring equitable benefits for host economies.

UN Trade and Development remains committed to supporting policymakers in this process and fostering investment strategies that contribute to Africa’s economic growth.

We encourage you to explore the full report for deeper insights into these transformative trends.

🔗 Click here to access the Investment Policy Monitor (No. 29): Investment laws: key trends and developments

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