Private investment, domestic and foreign, is crucial for countries to meet the SDGs and address global challenges like inequalities and climate change which affect livelihoods. Public policies can help countries, including OECD countries, mobilise more investment to address large financing gaps in many countries to reach the SDGs.? ??
Attracting foreign direct investment (FDI) brings in often much needed capital. Beyond the quantity of investment, the quality matters, for example the positive contribution of specific investments on well-being, jobs, gender equality, climate mitigation and adaptation, innovation, and infrastructure. A whole of government approach, mixing policies and institutions, is key to strengthen this contribution.
Consideration also needs to be given to economic resilience and national security implications of certain foreign investments. These considerations are often overlooked and can lead to excessive reliance on individual economies or firms as sources of supply, for example in sectors like food or energy. The OECD helps countries encourage investments, including FDI, while also managing risks.
