📋 Tender Overview
Foreign direct investment is one of the most important external sources of financing for accelerating sustainable development in low-income countries and reducing inequality. This intervention supports ongoing reforms of instruments (treaties, laws, contracts) to ensure good governance of international investment with a view to increasing its mobilization. Research will also be conducted on the perception and rating of political risks.
Country/region Topic Period Budget
Global
Inclusive economic Development
Other
Financial policy
Sector not specified
Tradepolicy & market system
01.04.2025 - 30.04.2028
CHF 570’000
The project in brief
Background Foreign direct investment contributed USD 867 billion to finance the development of emerging countries in 2023 (development aid, USD 223 billion). The international investment regime is a legacy of an era when sustainability was not defined. The framework no longer meets current challenges. Some aspects are now incompatible with the transformations imposed by sustainability or the climate emergency. These include the role of international arbitration in disputes, the lack of national rules, and the intransparency of international contracts, on the one hand, and, on the other, the exclusion of the riskiest countries from financial circuits due to political risk rating methods. When their governance remains incomplete, investments run the risk of exacerbating environmental degradation, inequality, conflict, and the marginalization of women and vulnerable groups. Conversely, when properly managed, they can offer a dual benefit, supporting both economic growth and, simultaneously, the climate, nature, and development. Switzerland is one of the world's ten largest capital exporters.
Objectives Promote a coherent, inclusive and balanced approach to international investment governance instruments and risk assessment with a view to accelerating the mobilization of private funds and generating additional financing for sustainable development.
Target groups Policy makers, representatives of governments, civil society, research communities and the private sector from developing countries, with a view to sharing knowledge, transferring solutions and ensuring policy coherence for sustainable development, at international, national and private levels.
Medium-term outcomes
Developing countries' awareness of alternatives for revising the international investment framework is being increased (reports, workshops, webinars, discussions).
Their negotiating capacity is strengthened through the development of alternative model instruments (treaties, laws, contracts).
Results Expected results:
An alternative to the current investment treaty model is being developed to support ongoing reforms.
A framework for designing and revising national investment laws is proposed for developing countries.
A set of standard clauses for investment contracts is developed.
A study on the influence of rating agencies a
