The investment climate is the set of factors that shape firms’ incentives to invest. Relevant factors include regulations, laws, infrastructure, and levels of corruption. This report assesses the evidence of low levels of investment in fragile and conflict-affected states (FCASs). It then examines the evidence of a link between an improved investment climate (IC) and economic ...» more
Fragility
Private Investment Constraints in the Poorest Countries
The private sector in the poorest countries faces many constraints of which poor access to affordable capital is one. It is not the case that there is no access to capital for many entrepreneurs in the poorest countries. Rather the cost of borrowing may be too high, the institutional environment may make formal borrowing seem onerous or potential borrowers may be unaware of the ...» more
Local Government Capacity and Leadership in Fragile Areas
There are a range of tools and methods available to measure, assess and monitor local governance, based on assessment by citizens (single stakeholders), by local government institutions, or by multiple stakeholders. In terms of specifically assessing capacity there are tools which produce capacity assessments for the purposes of Capacity Development (CD). For example ...» more
Improving the Investment Climate in Fragile and Conflict Affected States
There is little consensus about which interventions have been most successful in improving the investment climate (IC) in fragile and conflict-affected states (FCAS). This is partly because their primary aim – reducing risks to investors - is difficult to measure. It also relates to the considerable variation in the institutional and macroeconomic of FCAS states. As a World ...» more
Investment Climate Constraints in Fragile and Conflict Affected States
The investment climate can be understood as the set of factors in a given location that shape firms’ incentives and opportunities to invest, grow and create jobs. Some of these factors are costs; others are risks; still others are the competitive forces in the economy. Together, they determine the vibrancy and reach of private sector firms in the economy. A strong investment ...» more