Note: Single-source report; awaiting corroboration.
Private investment, both domestic and foreign, is crucial for countries aiming to meet the Sustainable Development Goals (SDGs) and address global issues such as inequalities and climate change, which impact livelihoods. According to the OECD, public policies can help countries mobilize greater investment to bridge significant financing gaps needed to achieve the SDGs.
The OECD notes that attracting foreign direct investment (FDI) brings needed capital, but attention must be given to both the quantity and quality of investments. Positive impacts on well-being, employment, gender equality, climate mitigation and adaptation, innovation, and infrastructure are important.
Effective investment mobilization requires a comprehensive government approach that integrates policies and institutions. Economic resilience and national security implications of certain foreign investments should also be considered, as excessive reliance on specific economies or firms—especially in critical sectors such as food or energy—can be risky.
The OECD supports countries in promoting investment, including FDI, while managing associated risks.