Post 2015: Global Action for an Inclusive and Sustainable Future

these structural shifts in the drivers and patterns
of global trade call for policy to adapt accordingly.
there is increasing recognition of the need for
global policy-makers to acknowledge and address
the structural shifts in trade flows: between nations,
but coordinated by transnational and multinational
firms (tncs and mncs), which operate on an
intra- and inter-firm basis. 95 For example, a recent
strategy document for the Eu on formulating an
integrated industrial policy for the globalisation era
states that success in the intensively interacting new
world economy depends on the ability of enterprises
to access international markets and exploit Gvcs
(com, 2010a). 96 the document also makes clear
the need for an industrialisation policy that is fit
for the globalisation era. this need has become
more apparent since the global financial crisis. the
challenge for all policy-makers is to ensure that the
economic benefits derived from participation in
Gpns and Gvcs facilitates rather than hinders the
development of productive capabilities. this in turn
depends on effective governance structures, both in
terms of how firms interact and in relation to how
governments interact with firms. 97
8.3.2 Changes in the investment
policy landscape
the investment policy landscape is also changing
rapidly. these changes are being driven not only by
the move of economic power from the developed
to the developing world, but also by the pressures
created by recent global crises (e.g. the food price
surge, energy price shocks, financial crises and the
eurozone crisis). In addition, a number of key policy
changes are taking place.
First, governments are renewing their interest in
regulating investment. the many reasons include
the fact that the global financial crisis has shown
how disruptive and irrational unregulated market
forces can be. as a result, more direct government
intervention is increasingly seen as necessary,
including within the realm of industrial policy, and
state regulation is becoming apparent across certain
strategic industries. For example, in the agriculture
sector, entry barriers or reinforced screening
procedures for foreign investors have recently
been introduced, particularly in africa and latin
america, in order to avoid excessive acquisition of
land by large foreign firms and sovereign wealth
funds (unctaD, 2012a).
Second, the so-called ’new generation’ investment
policies seek to put inclusive growth and sustainable
development at the core of investment practices
(unctaD, 2012b). these policies have three
main characteristics: (a) they recognise the role of
investment as a primary driver of economic growth
and sustainable development and therefore aim to
make investment policies an integral part of any
national or global development strategy; (b) they aim
to promote responsible investment, which recognises
the relevance of social and environmental goals; and
(c) they seek to overcome existing shortcomings in
investment policy. In order to ensure that any new
investment policy satisfies the above characteristics,
unctaD (2012b) has produced a set of core
principles or guidelines (see annex 3).
In addition to sources of private investment,
Development Finance Institutions (DFIs) have
become increasingly important investors in the
poorest countries and may help to promote good
practice. these investments may also have positive
effects on development more broadly. there
is recent evidence that DFIs can help to foster
investment and inclusive and sustainable growth
(te velde, 2011a; massa, 2011b). lIcs are found to
benefit mainly from DFI investment in agribusiness
and infrastructure, while higher-income countries
95 the difference between an mnc and a tnc is that the latter operates worldwide without being identified with a national home base while the
former has extensive ties in international operations in more than one country.
96 this policy includes ’every part of the increasingly international value chain – from access to raw materials to after-sales service’ (com, 2010a).
97 For further discussion see Keane (2012a).
poSt-2015: Global actIon For an IncluSIvE anD SuStaInablE FuturE
The structural
shifts in the
drivers and
patterns of global
trade call for
policy to adapt
accordingly.
145