MCI Releases Guidance Paper on Evaluating Sustainable FDI
MCI’s latest working paper, “Guidance Paper on Evaluating Sustainable Foreign Direct Investment (Investment Working Paper No. 12/2012),” is intended to provide guidance and an assessment methodology to national level Governments as well as to regional and metropolitan governments seeking to attract sustainable foreign direct investment (FDI). Written by Professor John M. Kline of Georgetown University’s Walsh School of Foreign Service, the working paper was commissioned by MCI under our Regional Partnership to Promote Trade and Investment in sub-Saharan Africa, a project funded by the Government of Finland together with three of the Millennium Cities, to strengthen investment promotion capacity in those three sites: Kumasi, Ghana; Mekelle, Ethiopia; and Tabora, Tanzania.
The paper provides an operational definition of sustainable FDI that will help users identify and evaluate the economic, environmental, social and governance impacts of proposed investment projects. A Project Assessment Matrix, comprised of a checklist of sustainable FDI indicators, serves as a practical tool for assigning weighted importance to priority development goals and recommends numerical ratings for qualitative assessments of FDI, with the aim of increasing transparency regarding how a project is evaluated.