The proposed computation method includes the following in the compilation of SDG indicator 17.5.1:

Target countries of outward investment promotion regimes

The indicator methodology covers both:

Specific investment promotion regimes targeted for LDCs only;
Investment promotion regimes for developing countries in general, including LDCs.

The measurement should include outward investment promotion regimes that do not exclude developing countries. Only this approach ensures getting a full picture of outward investment promotion with LDCs as beneficiaries, which is better aligned with Target 17.5. By contrast, limiting the research to specific promotion regimes for LDCs only would result in partial information, because the number of LDCs that receive support through investment promotion regimes for all developing countries is likely to be much higher than the number of LDCs that benefit from LDC-specific promotion regimes. Therefore, both types are included when identifying the countries that have adopted and implemented investment promotion regimes for developing countries, including least developed countries.

Types of outward investment promotion regimes

Based on consultations and feasibility studies on what types of investment promotion regimes to look at, the following methodology is suggested:

Countries use various means to promote foreign investment abroad (see above “Concepts”). Indicator 17.5.1 will focus on the legal investment instruments, since relevant information is – to various degrees - usually publicly available, and thus feasible to compile.

Information is less frequently available on informal and ad-hoc means of outward investment promotion, such as advisory services. The availability of reliable information on such measures would vary greatly across countries. Thus, including such information would hamper the international comparability of the indicator.

To be included in the number of countries that have adopted and implemented investment promotion regimes, the existence of at least one type of promotion instrument (e.g. an investment guarantee scheme or financial support for outward investment that can benefit developing countries, including LDCs) would be sufficient.

Adoption vs. implementation of outward investment promotion regimes

Consultations and feasibility studies were carried out on whether – in addition to the existence of an outward investment promotion regime, i.e., whether such tools were signed or otherwise adopted – it would also be feasible to examine as to what extent the regime was actually implemented, i.e., whether the regime is in force or even if an LDC actually benefitted from it, e.g., by receiving a foreign investment promoted by an investment guarantee. It was concluded to focus the research on the adoption of a promotion system as such Otherwise information on the actual stage of implementation in individual countries is usually not publicly available; scattered data about the situation in some countries could not provide a comprehensive and reliable picture of the overall situation. However, it may be possible to come up with some aggregate data at the regional or global level (see below).

Coverage of home countries of outward investment promotion regimes

There is also a question of which countries should be included in the measure as home countries of outward investment promotion regimes. The indicator will not only include measures put in place by developed countries but also by emerging economies, thus measuring South-South cooperation in this respect in addition.

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Rætta uppseting: 17.5.1