OECD Ministers have endorsed updated guidelines to help national governments and regional groups create the right conditions to attract domestic and foreign investment.

Ministers agreed the updated Policy Framework for Investment (PFI) – first developed in 2006 – during the OECD’s annual Ministerial meeting in Paris.

The updated version places more focus on infrastructure, small and medium-sized enterprises and the role played by global value chains in economic activity. It also includes gender issues, a vital element of inclusive development, as well as policies to channel investment in areas that promote green growth.

“The global investment landscape has changed dramatically over the past decade,” said OECD Secretary-General Angel Gurría. “This updated Framework will help get investment to where it is most needed, making it more effective and sustainable to benefit business, society and the environment.”

The Policy Framework connects 12 policy areas: investment policy; investment promotion and facilitation; competition; trade; taxation; corporate governance; finance; infrastructure; developing human resources; policies to promote responsible business conduct and investment in support of green growth; and public governance.

A taskforce, co-chaired by Finland and Myanmar, led the work on the update. More than 25 countries at varying levels of development and across all continents have already used or are currently using the PFI to assess their business climate and design reforms, ranging from Botswana and Burkina Faso to Cambodia, China, India, Indonesia, Morocco, Myanmar, Peru and Zambia. This experience has informed the update. The PFI is ready for use as a global reference for investment policy reforms, including for development co-operation.

The PFI also complements other areas of OECD work on investment and long-term financing, including the OECD Guidelines for Multinational Enterprises, the OECD Principles of Corporate Governance and the G20/OECD High-Level Principles for Long-Term Investment Financing by Institutional Investors.

Ministers from the 34 OECD member countries were joined at the annual Ministerial Council Meeting by ministers and representatives from Brazil, China, Colombia, Costa Rica, India, Indonesia, Latvia, Lithuania and South Africa, as well as by senior officials from various international organisations. Ministers and high-level representatives from Argentina; Hong Kong, China; Kazakhstan; Myanmar; Morocco; Peru; and Senegal were also invited to participate in certain sessions of the Ministerial.